Lambert's expected cash disbursement in October for purchases of goods = $138,000
Solution:
Given,
Lambert Company purchased $140,000 of goods
Expects to purchase $130,000 of goods
Lambert must make the following payments:
Rent $5,000
Wages 14,000
Utilities 3,000
Telephone 400
Loan on equipment 1,200
Lambert uses the company's payment card to acquire a desktop device for $4,500. Usually, the credit card balance must be charged in full in the next month. September payment card transactions contributed to $6,000.
Now , To find Lambert's expected cash disbursement in October for purchases of goods :
$5,000 + $14,000+ $3000+ $400+ $1200 = $23600
= $23600 + 80% of the Sept order of $140,000 ($112,000) + 20% of the Oct order of $130,000($26,000)
= $161,600 + the $6000 credit card = $167,600
Purchase of goods is $112,000 & $26,000 = $138,000
