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  3. the following data have been taken from the budget

The following data have been taken from the budget reports of Kenyon Company, a merchandising...

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Accounting

The following data have been taken from the budget reports of Kenyon Company, a merchandising company.

Purchases Sales
January $ 194,000 $ 134,000
February $ 194,000 $ 234,000
March $ 194,000 $ 274,000
April $ 174,000 $ 334,000
May $ 174,000 $ 294,000
June $ 154,000 $ 274,000

Forty percent of purchases are paid for in cash at the time of purchase, and 30% are paid for in each of the next two months. Purchases for the previous November and December were $184,000 per month. Employee wages are 10% of sales for the month in which the sales occur. Marketing and administrative expenses are 20% of the following month's sales. (July sales are budgeted to be $254,000.) Interest payments of $54,000 are paid quarterly in January and April. Kenyon's cash disbursements for the month of April would be: (CMA adapted)

Multiple Choice

  • $183,000.

  • $332,200.

  • $261,575.

  • $324,353.

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