Grenfell Company is preparing a cash budget for 2014 for purchases of Calvos. Budgeted data are as

Question:

Grenfell Company is preparing a cash budget for 2014 for purchases of Calvos. Budgeted data are as follows:

Cost of goods sold for the year 2014 .....$ 600,000

Accounts payable, 1/1/14 ........... 40,000

Inventory, 1/1/14 .............. 60,000

Desired inventory, 12/31/14 .......... 84,000

Purchases will be made in 12 equal monthly amounts and paid for in the following month. Compute the budgeted cash payment for purchases of Calvos for 2014.

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...