Thunderbolt Corporation Is in the Process of Preparing Its Budget

question 31

Essay

Thunderbolt Corporation is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 60 percent of sales. Merchandise purchases are to be made during the month preceding the month of the sales. Thunderbolt pays 60 percent in the month of purchase, and 40 percent in the month following. Wages are estimated at 20 percent of sales and are paid during the month of sale. Other operating costs amounting to 10 percent of sales are to be paid in the month following the sale. The accounts payable balance on June 30 was $48,000. $$\begin{array} { l r } \text { Month } & \text { Sales } \\\text { June } & \$ 170,000 \\\text { July } & 200,000 \\\text { August } & 120,000 \\\text { September } & 150,000 \\\text { October } & 160,000 \\\text { November } & 100,000\end{array}$$
Required:
Prepare a schedule of cash disbursements for July, August, and September.

---

Definitions:

Sample Mean

The arithmetic average of a set of sample values, used as an estimate of the population mean.

Population Mean

The average value of a characteristic in the entire population of interest.

Unbiased Estimator

A statistic used to estimate a population parameter that is expected to be equal to the true parameter value on average.

Larger Sample Sizes

Referring to the use of a greater number of observations in a study, which can enhance the reliability and precision of statistical estimates.