Question

The following selected data pertain to Flagship Corporation: Cash operating expenses July 1-31 Depreciation Merchandise purchases in July Estimated payments in July for June purchases Estimated payments in July for purchases prior to June Estimated payments in July for purchases in July s 180,000 60,000 560,000 220,000 50,000 40 % July's cash disbursements are expected to be:________. A) $464,000 B) $734,000 C) S404,000. D) $674,000. E) None of the answers is correct.

Answer 1

Answer:

D) $674,000

Explanation:

Calculation to determine what July's cash disbursements are expected to be:

July's cash disbursements =$180,000 + ($560,000 x 40%) + $220,000 + $50,000

July's cash disbursements = $674,000

Therefore July's cash disbursements are expected to be:$674,000