?? Lough Company prepared the following purchasesbudget:June$40,000July$43,000August $39,000September $46,000October $49,100All purchases are paid for as follows: 20% two monthsafter purchase, 55% in the following month,and 25% in the month of purchase.What are the cash disbursements in October toaccount for the September purchases at LoughCompany?

Solution= September purchases x percentage paid= $46,000 x 55%= $25,300 Noteslet's break down the…

Answered: Lough Company prepared the following…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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f) The Cathy Specialist Corporation approached you to compile a cash disbursement schedule for the month of March, April and May. Use the following information. Sales: January-RMS20,000; February-RM540,000; March-RM550,000; April=RM600,000; May-RM660,000; June-RM670,000. Purchases: Purchases are calculated as 70% of the following month's sales, 50% of purchase are made in cash, 30% of purchases are settled one month after purchase, and the remaining 20% of purchase are settled two months after purchase. c) d) e) g) h) the firm's expected cash receipts for a) b) Rent: The firm pays rent of RM9,500 per month. Wages & salaries: the fixed wage and salary costs are RM7,500 per month plus a variable cost of 6.5% of the current month's sales. Taxes: the tax bill to be paid in May amount to RM57,500. Fixed asset outlay: new equipment will be acquired during March at a cost of RM85,000. Interest payment: an amount of RM32,000 for interest is due in March. Cash Dividend: Dividends of RM15,000…

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