Johnson Company budgeted the following information for 2006:

€¢ All sales are on credit and are collected 30% in the month of sale and 70% in
the following month.
€¢ Cost of goods sold is 40% of sales. Accounts payable is used only for inventory acquisitions.
€¢ Johnson purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
€¢ Selling and administrative expenses are budgeted at $40,000 for May and are expected to increase 5% per month.
€¢ They are paid during the month of acquisition. In addition, budgeted depreciation is $10,000 per month.
€¢ Johnson pays $4,500 per month for its 6% note payable and interest.
€¢ Income taxes are 30% of income before taxes and are paid during the month after accrual.
How much are the budgeted cash disbursements for July?

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August $290,000 100,000 35,309 May $320,000 104,000 June July $288,000 102,000 Budgeted sales Budgeted purchases Budgeted income taxes $300,000 $110,000 38,400 37,200 35,610