Question

ThinkPad Corporation in the beginning states in the preparation of the cash budget. The company estimates cost of goods sold are 60% of sales.  The merchandise purchases are required to be acquired during the month preceding the month of the sales.  ThinkPad Corporation pays 60% in the month of the purchase and the remaining the following month.  The Controller estimates wages are 20% of sales and are paid in the month of the sale. The company incurs other operating expenses approximating 10% of sales and these other operating expenses are paid in the month following the sale.  The balance of accounts payable on June 30.

Month	Sales
June	$170,000
July	200,000
August	120,000
September	150,000
October	160,000
November	100,000

Compute total cash disbursements for the months of July, August and September.  (That is you will compute cash disbursements for each month however your answer will be the sum of all three months).  Do not enter in three separate answers.  There is only one answer.

Answer 1