Reference no: EM132596484

Question 1: Materials are purchased on account for a company. The company pays for half of the purchases in the current month and the other half the following month. Suppliers for materials are owed $2,000 from the previous month. Purchases of materials for the current month total $80,000. Depreciation expense for the month total $8,500. Sales commissions of 10% of gross sales are paid in the current month. Sales for the month total $450,000. Labor costs for the month total $87,000 which will be paid in the current month. The company has a $300,000 loan with a 12% annual rate of interest. Interest is paid at the end of the month with no principal payment. Compute the amount of cash disbursements for the month.