Sarasota, Inc. provided the following information: July August Projected sales $234,000 $260,000 Projected merchandise purchases $144,000 $172,000 • Sarasota estimates that it will collect 40% of its sales in the month of sale, 35% in the month after the sale, and 22% in the second month following the sale. Three percent of all sales are estimated to be bad debts. • Sarasota pays for 30% of merchandise purchases in the month purchased and 70% in the following month. • General operating expenses are budgeted to be $22,500 per month, including depreciation of $2,000. Sarasota pays operating expenses in the month incurred. • Sarasota makes loan payments of $3,000 per month of which $450 is interest and the remainder is principal. Calculate Sarasota's budgeted cash disbursements for August. Budgeted Cash Disbursements Enter the budgeted cash disbursements in dollars
Sarasota, Inc. provided the following information: July August Projected sales $234,000 $260,000 Projected merchandise purchases $144,000 $172,000 • Sarasota estimates that it will collect 40% of its sales in the month of sale, 35% in the month after the sale, and 22% in the second month following the sale. Three percent of all sales are estimated to be bad debts. • Sarasota pays for 30% of merchandise purchases in the month purchased and 70% in the following month. • General operating expenses are budgeted to be $22,500 per month, including depreciation of $2,000. Sarasota pays operating expenses in the month incurred. • Sarasota makes loan payments of $3,000 per month of which $450 is interest and the remainder is principal. Calculate Sarasota's budgeted cash disbursements for August. Budgeted Cash Disbursements Enter the budgeted cash disbursements in dollars
Chapter16: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 11P
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Question
Sarasota, Inc. provided the following information:
Calculate Sarasota's budgeted cash disbursements for August.
|
July
|
August
|
||||
|---|---|---|---|---|---|
|
Projected sales
|
$234,000 | $260,000 | |||
|
Projected merchandise purchases
|
$144,000 | $172,000 |
| • | Sarasota estimates that it will collect 40% of its sales in the month of sale, 35% in the month after the sale, and 22% in the second month following the sale. Three percent of all sales are estimated to be |
| • | Sarasota pays for 30% of merchandise purchases in the month purchased and 70% in the following month. |
| • | General operating expenses are budgeted to be $22,500 per month, including depreciation of $2,000. Sarasota pays operating expenses in the month incurred. |
| • | Sarasota makes loan payments of $3,000 per month of which $450 is interest and the remainder is principal. |
Calculate Sarasota's budgeted cash disbursements for August.
| Budgeted Cash Disbursements | Enter the budgeted cash disbursements in dollars |
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