Accounting

3. | Purchases budget: | | | | | | |

| | 20x0 | | 20x1 |

| |

December |

January |

February |

March | First

Quarter |

| Budgeted cost of

goods sold |

$280,000 |

$308,000 |

$338,800 |

$372,680   |

$1,019,480    |

| Add: Desired

ending inventory |

 154,000 |

 169,400 |

 186,340 |

 186,340* |

   186,340†   |

| Total goods

needed |

$434,000 |

$477,400 |

$525,140 |

$559,020   |

$1,205,820    |

| Less: Expected

beginning

inventory |

 140,000 |

 154,000 |

 169,400 |

 186,340   |

  154,000** |

| Purchases | $294,000 | $323,400 | $355,740 | $372,680   | $1,051,820    |

4. | Cash disbursements budget: | | | | |

| | | 20x1 |

| | |

January |

February |

March | First Quarter |

| Inventory purchases: | | | | |

| Cash payments for purchases

during the current month |

$129,360 |

$142,296 |

$149,072 |

$ 420,728 |

| Cash payments for purchases

during the preceding

month† |

176,400 |

194,040 |

213,444 |

583,884 |

| Total cash payments for

inventory purchases |

$305,760 |

$336,336 |

$362,516 |

$1,004,612 |

| | | | | |

| Other expenses: | | | | |

| Sales salaries | $ 21,000 | $ 21,000 | $ 21,000 | $   63,000 |

| Advertising and promotion | 16,000 | 16,000 | 16,000 | 48,000 |

| Administrative salaries | 21,000 | 21,000 | 21,000 | 63,000 |

| Interest on bonds** | 15,000 | -0- | -0- | 15,000 |

| Property taxes** | -0- | 5,400 | -0- | 5,400 |

| Sales commissions |    4,400 |    4,840 |    5,324 |    14,564 |

| | | | | |

| Total cash payments for other expenses |

$ 77,400 |

$ 68,240 |

$ 63,324 |

$   208,964 |

| Total cash disbursements | $383,160 | $404,576 | $425,840 | $ 1,213,576...