Question: Jake Company reports the following:
July August September
Sales . . . . . . . . . . . . $24,000 $32,000 $36,000
Purchases . . . . . . . . 14,400 19,200 21,600
Payments for purchases are made in the month after purchase. Selling expenses are 15% of sales, administrative expenses are 10% of sales, and both are paid in the month of sale. Rent expense of $2,400 is paid monthly. Depreciation expense is $1,300 per month. Prepare a schedule of budgeted cash disbursements for August and September.