Q: 14
The following information applies to Brandon Company:
A cash payment equal to 40% of purchases is made at the time of purchase1 and 30% is paid in each
of the next 2 months. Purchases for the previous November and December were $150,000 per
month. Payroll is 10% of sales in the month it occurs, and operating expenses are 20% of the
following month’s sales (July sales were $220,000). Interest payments were $20,000 paid quarterly in
January and April. Brandon’s cash disbursements for the month of April were
A cash payment equal to 40% of purchases is made at the time of purchase1 and 30% is paid in each
of the next 2 months. Purchases for the previous November and December were $150,000 per
month. Payroll is 10% of sales in the month it occurs, and operating expenses are 20% of the
following month’s sales (July sales were $220,000). Interest payments were $20,000 paid quarterly in
January and April. Brandon’s cash disbursements for the month of April wereOptions
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