FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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![**Riverbed Inc. Budget Information**
Riverbed Inc. provided the following information regarding their projected merchandise purchases and expenses for the months of April, May, and June:
| | April | May | June |
|---------|----------|---------|--------|
| Projected merchandise purchases | $92,500 | $82,000 | $69,000 |
**Details:**
- **Merchandise Payment Schedule:**
- 40% of merchandise purchases are paid in the month of the purchase.
- 60% are paid in the following month.
- **General Operating Expenses:**
- Budgeted to be $34,500 per month.
- Depreciation accounts for $3,400 of this amount.
- Expenses are paid in the month they are incurred.
- **Loan Payments:**
- Riverbed makes monthly loan payments of $5,000.
- Of this, $550 is for interest and the remainder is for principal.
**Task:**
Calculate the budgeted cash disbursements for May.
**Calculate the total budgeted cash disbursements for May:**
Total budgeted cash disbursements: $ [Enter answer]](https://content.bartleby.com/qna-images/question/0d1f03dc-16fb-4834-9136-6d6472c9ed62/eb66d4e4-78e5-4140-b7e0-fadd7e85bfec/iwb6ps5_processed.jpeg)
Transcribed Image Text:**Riverbed Inc. Budget Information**
Riverbed Inc. provided the following information regarding their projected merchandise purchases and expenses for the months of April, May, and June:
| | April | May | June |
|---------|----------|---------|--------|
| Projected merchandise purchases | $92,500 | $82,000 | $69,000 |
**Details:**
- **Merchandise Payment Schedule:**
- 40% of merchandise purchases are paid in the month of the purchase.
- 60% are paid in the following month.
- **General Operating Expenses:**
- Budgeted to be $34,500 per month.
- Depreciation accounts for $3,400 of this amount.
- Expenses are paid in the month they are incurred.
- **Loan Payments:**
- Riverbed makes monthly loan payments of $5,000.
- Of this, $550 is for interest and the remainder is for principal.
**Task:**
Calculate the budgeted cash disbursements for May.
**Calculate the total budgeted cash disbursements for May:**
Total budgeted cash disbursements: $ [Enter answer]
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