The Following Data Have Been Taken from the Budget Reports

question 6

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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Definitions:

Industrial Fiber

Materials used in the production of goods in industries, often characterized by their strength and durability.

Refined Sugar

Processed sugar that has been purified and crystallized from raw sugar.

Materials Costs

The cost of raw materials and components that are used in the production of goods or services.

Processing Costs

Expenses related to the operations required to transform raw materials into finished products.