Ashland Corporation, a merchandising firm, is preparing its cash budget for October. The following information is available

Question:

Ashland Corporation, a merchandising firm, is preparing its cash budget for October. The following information is available concerning its inventories:
Inventories at beginning of October ................ $ 505,000
Estimated purchases for October .................. 1,980,000
Estimated cost of goods sold for October.............. 2,025,000
Estimated payments in October for purchases in September ...... 495,000
Estimated payments in October for purchases prior to September ...... 90,000
Estimated payments in October for purchases in October........ 70%

Required
What are the estimated cash disbursements in October?

Cash Budget
A cash budget is an estimation of the cash flows for a business over a specific period of time. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payment.  Its primary purpose is to provide the...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals of Cost Accounting

ISBN: 978-0078025525

4th edition

Authors: William Lanen, Shannon Anderson, Michael Maher

Question Posted: