The Following Data Have Been Taken from the Budget Reports

question 91

Multiple Choice

The following data have been taken from the budget reports of Brandon company, a merchandising company. Forty percent of purchases are paid for in cash at the time of purchase, and 30% are paid for in each of the next two months. Purchases for the previous November and December were $150,000 per month. Employee wages are 10% of sales for the month in which the sales occur. Selling and administrative expenses are 20% of the following month's sales. (July sales are budgeted to be $220,000.) Interest payments of $20,000 are paid quarterly in January and April. Brandon's cash disbursements for the month of April would be:

• A)$140,000
• B)$254,000
• C)$200,000
• D)$248,000

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Alphabet

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