Dodge Ltd Is in the Process of Preparing Its Budget for for Next

question 8

Essay

Dodge Ltd. 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. Dodge 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 £20,000.
Required:
Prepare a schedule of cash disbursements for July, August, and September.

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Definitions:

Eukaryotic Supergroups

Major categories used to classify the diversity of eukaryotic organisms, based on genetic and morphological characteristics.

Types

Categories or classifications distinguished by specific characteristics.

Organisms

Any individual living entity, from single-celled bacteria to multicellular plants and animals, including humans.

Basidiocarp

The fruiting body of basidiomycete fungi, where spore production occurs.