Calculate marigold''s budgeted cash disbursements for august

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Question - Marigold, Inc. provided the following information:


July

August

Projected sales

$228,000

$250,000

Projected merchandise purchases

$146,000

$170,000

Marigold estimates that it will collect 40% of its sales in the month of sale, 35% in the month after the sale, and 22% in the second month following the sale. Three percent of all sales are estimated to be bad debts.

Marigold pays for 30% of merchandise purchases in the month purchased and 70% in the following month.

General operating expenses are budgeted to be $23,000 per month, including depreciation of $1,900. Marigold pays operating expenses in the month incurred.

Marigold makes loan payments of $4,500 per month of which $550 is interest and the remainder is principal.

Required - Calculate Marigold's budgeted cash disbursements for August.

Reference no: EM133160996

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