Evergreen Furniture, a retailing company, is preparing the cash budget for August. The following inventory information is available: Estimated payments in August for purchases in August 70% Estimated purchases for August $ 2,380,000 Estimated cost of goods sold for August 2,440,000 Estimated payments in August for purchases in July 600,000 Estimated payments in August for purchases prior to July 112,000 Inventories at beginning of August 610,000 Required: What are the estimated cash disbursements in August?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Evergreen Furniture, a retailing company, is preparing the
| Estimated payments in August for purchases in August | 70% |
|---|---|
| Estimated purchases for August | $ 2,380,000 |
| Estimated cost of goods sold for August | 2,440,000 |
| Estimated payments in August for purchases in July | 600,000 |
| Estimated payments in August for purchases prior to July | 112,000 |
| Inventories at beginning of August | 610,000 |
Required:
What are the estimated cash disbursements in August?
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