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

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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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $135,000
Estimated purchases for October . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 660,000
Estimated cost of goods sold for October. . . . . . . . . . . . . . . . . . . . . . . . . . . 675,000
Estimated payments in October for purchases in September . . . . . . . . . . . 165,000
Estimated payments in October for purchases prior to September . . . . . . . 30,000
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...
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Fundamentals of Cost Accounting

ISBN: 978-0077398194

3rd Edition

Authors: William Lanen, Shannon Anderson, Michael Maher

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