Question 5: 6% points:
Crush Can Inc. provided the following information:
April  May  June
Projected merchandise purchases  $184,000  $156,000    $132,000
Crush Can pays 40% of merchandise purchases in the month purchased and 60% in the following month.
General operating expenses are budgeted to be $62,000 per month of which depreciation is $8,000 of this amount. Hoover pays operating expenses in the month incurred.
Crush Can makes loan payments of $7,000 per month of which $700 is interest and the remainder is principal.
Instructions: Calculate budgeted cash disbursements for June.
Solution
Cash disbursements for the month JUNE are as follows:
Amount in $
payment for the purchases of June= 52800 1
payment for the purchases of May = 93600 2
General operating expenses= 54000 3
Interest payment of loan= 700
TOTAL= $ 201100 (answer)
Working notes :
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Question 5- 6- points- Crush Can Inc- provided the following informati.docx
1. Question 5: 6% points:
Crush Can Inc. provided the following information:
April  May  June
Projected merchandise purchases  $184,000  $156,000    $132,000
Crush Can pays 40% of merchandise purchases in the month purchased and 60% in the
following month.
General operating expenses are budgeted to be $62,000 per month of which depreciation is
$8,000 of this amount. Hoover pays operating expenses in the month incurred.
Crush Can makes loan payments of $7,000 per month of which $700 is interest and the
remainder is principal.
Instructions: Calculate budgeted cash disbursements for June.
Solution
Cash disbursements for the month JUNE are as follows:
Amount in $
payment for the purchases of June= 52800 1
payment for the purchases of May = 93600 2
General operating expenses= 54000 3
Interest payment of loan= 700
TOTAL= $ 201100 (answer)
Working notes :
