Cb Question 20 of 20

Question 20 of 20 View Policies Current Attempt in Progress Bramble, Inc. has budgeted sales revenues as follows: Credit sales Cash sales Total sales June $140,000 91,000 $231,000 July $130,000 250,000 $380,000 August $ 91,000 191,000 $ 282,000 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Purchases of inventory are all on account with 50% is paid in the month of purchase and 50% paid in the month following purchase. Budgeted inventory purchases are as follows: June July August $301,000 221,000 102,000 Other cash disbursements budgeted: (a) selling and administrative expenses of $53,000 each month, (b) dividends of $109,000 will be paid in July, and (c) purchase of equipment in August for $31,000 cash. The company's policy is to maintain a minimum cash balance of $50,000 at the end of each month. The company borrows money from