Solution-What are the cash disbursements expected in April

What are the cash disbursements expected in April

Reference no: EM132974287

Question - Jameson Company is preparing the budget for the second quarter. At the end of March, the balance in inventory was 20,000 units and accounts payable was $80,000.

The budgeted unit sales for the next four months are:

April 60,000

May 75,000

June 90,000

July 81,000

The purchase price per unit is $2 per unit. Purchases are paid 60% in the month of sale and 40% in the next month. The desired ending inventory policy is to have one-third of the units needed for the following months sales on hand at the end of each month.

Required - Show your work for ANY credit.

1. How many units should be purchased in April?

2. What are the cash disbursements expected in April?

Reference no: EM132974287

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What are the cash disbursements expected in April

Reference no: EM132974287

Reference no: EM132974287

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