Calculate the budgeted cash disbursements for September

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Question - The following budget information pertains to Flores Corp:

Month Sales

July $300,000

August 340,000

September 380,000

October 420,000

November 480,000

Cash is collected from customers in the following manner:

Month of sale 30%

Month following sale 50%

Two months following sale 15%

Amount uncollectible 5%

Purchase costs are 70% of Sales.

Purchase terms are 2/15, net 30.

Flores's policy is to take advantage of all discounts for early payments.

40% of purchases are paid for in cash in the month of purchase, and the remaining balance is paid the following month.

Required - Calculate the budgeted cash disbursements for September. Calculate intermediate calculations to two decimals, round solution to dollars.

Reference no: EM133148446

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