Payments for purchases are made in the month after purchase. Selling expenses are 20% of sales, administrative expenses are 8% of sales, and both are paid in the month of sale. Rent expense of $2,000 is paid monthly. Depreciation expense is $1,500 per month.
Prepare a schedule of budgeted cash disbursements for August and Septembe
Solution
Hi,
Please find the detailed answer as follows:
Notes:
Depreciation is a non-cash expense, hence it will not get reported on the cash disbursement schedule.
Thanks.
.
Payments for purchases are made in the month after purchase- Selling e.docx
1. Payments for purchases are made in the month after purchase. Selling expenses are 20% of sales,
administrative expenses are 8% of sales, and both are paid in the month of sale. Rent expense of
$2,000 is paid monthly. Depreciation expense is $1,500 per month.
Prepare a schedule of budgeted cash disbursements for August and Septembe
Hector Company reports the following:
Solution
Hi,
Please find the detailed answer as follows:
Notes:
Depreciation is a non-cash expense, hence it will not get reported on the cash disbursement
schedule.
Thanks.
HECTOR COMPANY
Budgeted Cash
Disbursements
For August and September
August September
Purchases 19470 24190
Selling Expenses 8200 9000
Administrative Expenses 3280 3600
Rent Expense 2000 2000
Total Cash Disbursement 32950 38790
