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Beal, Inc. provided the following information: March April May

Projected merchandise purchases $65,000 $75,000 $80,000

Beal pays 40% of merchandise purchases in the month purchased and 60% in the following month. . .

General operating expenses are budgeted to be $20,000 per month of which depreciation is $2,000 of this amount. Beal pays operating expens

Calculate Beal's budgeted cash disbursements for May.

Budgeted cash disbursements

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Answer:

Budgeted cash disbursements

= Payment for May sales + Payment for April sales + operating expenses excluding depreciation

= (80,000*40%) + (75,000*60%) + (20,000-2,000)

= 32,000 + 45,000 + 18,000

= 95,000

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