Your Firm Is Trying to Determine Its Cash Disbursements for the Next

question 106

Multiple Choice

Your firm is trying to determine its cash disbursements for the next two months (June and July) . In any month, the firm makes purchases of 60% of that month's sales, which are paid the following month. In addition, the firm incurs the following costs every month and pays for them in the month the expenses are incurred: wages/salaries of $10,000, rent of $4,000, and miscellaneous cash expenses of $1,000. Depreciation amortized on a monthly basis is $2,000. June's sales are expected to be $100,000, and July's sales are expected to be $150,000. Cash disbursements for the month of July are expected to be

• A) $105,000.
• B) $107,000.
• C) $77,000.
• D) $75,000.

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Definitions:

Orientation

The introduction and adaptation process for new members in an organization, or the directional focus and adjustments in strategic planning.

Job-Related Paperwork

The documents and written tasks associated with employment, including forms, reports, and records.

Employee Orientation

The process of introducing new employees to their job, coworkers, and the organization, typically including training on company policies and procedures.

Organization's Mission

The fundamental purpose that distinguishes an organization from others, guiding its actions and decisions.