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Calculate budgeted cash disbursements for may

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Reference no: EM132044101

Question - Ferguson Inc. provided the following information:

April May June

Projected merchandise purchases $92,000 $78,000 $66,000

Ferguson pays 40% of merchandise purchases in the month purchased and 60% in the following month.

General operating expenses are budgeted to be $31,000 per month of which depreciation is $3,000 of this amount. Ferguson pays operating expenses in the month incurred.

Ferguson makes loan payments of $4,000 per month of which $450 is interest and the remainder is principal.

Instructions - Calculate budgeted cash disbursements for May.

Reference no: EM132044101

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