Werth's Widgets pays for30% of its inventory purchases in the month of the purchase and the remainder

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Werth's Widgets pays for30% of its inventory purchases in the month of the purchase and the remainder in the following month. The company's inventory purchases totaled $65,000 in October, $87,000 in November, and $52,000 in December. During November, Werth acquired new equipment costing $100,000 by signing a note for $80,000 and paid the balance in cash. Werth made one payment for $5,000 toward the note during December that included $600 of interest. Income taxes totaling $30,000 were paid in December. General and admin expenses totaled $30,000 during October, $35,000during November, and $40,000 during December, of which $5,000 per month is for depreciation. Werth pays 80% of the cash general and admin costs during the month incurred and the balance the following month. Cash at the beginning of November was $40,000. Prepare a cash disbursements budget for November for Werth's Widgets. Include correct labels in good form.
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Financial Analysis with Microsoft Excel

ISBN: 978-1285432274

7th edition

Authors: Timothy R. Mayes, Todd M. Shank

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