Answered

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The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information:Sales at $650,000, all for cash.Merchandise inventory on November 30 was $300,000.The cash balance at December 1 was $38,000.Selling and administrative expenses are budgeted at $120,000 for December and are paid in cash.Budgeted depreciation for December is $65,000.The planned merchandise inventory on December 31 is $330,000.The cost of goods sold is 70% of the sales price.All purchases are paid for in cash.There is no interest expense or income tax expense.The budgeted cash receipts for December are:

Sagot :

ayokenny2001

Answer:

See below

Explanation:

The budgeted cash disbursement for December are;

Beginning cash balance

$38,000

Sales

$650,000

Selling and admin

($120,000)

* Purchases (see calculation below)

($485,000)

Closing cash balance

$83,000

We will use the below to get purchases

Opening stock + Purchases - Closing stock = Cost of sales

Therefore,

$300,000 + Purchases - $330,000 = 70% × $650,000

Purchases = $455,000 + $330,000 - $300,000

Purchases = $485,000

The budgeted cash disbursement

= Purchases + Selling and admin

= $485,000 + $120,000

= $605,000

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