Thunderbolt Corporation Is in the Process of Preparing Its Budget

question 77

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.
Required:
Prepare a schedule of cash disbursements for July, August, and September.

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Definitions:

Navigation Act of 1696

Part of a series of British laws that regulated maritime trade and laid the foundation for the British colonial mercantile system, aiming to restrict colonial trade to English ships and goods.

Vice-Admiralty Courts

Courts established in British colonies to handle maritime cases without a jury, often used for enforcing trade regulations.

Tuscarora Wars

a series of conflicts fought in North Carolina from 1711 to 1715 between the Tuscarora Native American tribe and European settlers, leading to the tribe's move north to join the Iroquois Confederacy.

Yamasee Wars

A series of conflicts from 1715 to 1717 in the colonial American Southeast between English settlers and various Native American tribes, including the Yamasee, which significantly impacted colonial and Native American relations.