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    Lowe Ridge

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    Lowe Ridge has budgeted its activity for Dec according to the following information.
    1. Sales at $400,000, all for cash.
    2. Budgeted depreciation for December is $10,000.
    3. The cas balance at Dec 1 was $10,000.
    4. Selling and administrative expenses are budgeted at $40,000 for Dec and are paid for in cash.
    5. The planned merchandise inventory at Dec 31 and Dec 1 is $12,000.
    6. The invoice cost of merchandise purchases represents75% of the sales price. All purchases are paid in cash. How much are the budgeted cash disbursements for December?

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    Solution Preview

    Lowe Ridge has budgeted its activity for Dec according to the following information.

    1. Sales at $400,000, all for cash.
    2. Budgeted depreciation for December is $10,000.
    3. The cash balance at Dec 1 was $10,000.
    4. Selling ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer how much are the budgeted cash disbursements for December.

    $2.19

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