Tommy Company budgeted the following information for 2012 Budgeted purchases: May $104,000 June $110,000 July $102,000 *Cost of goods sold is 40% of sales. Accounts payable is used

Tommy Company budgeted the following information for 2012

Budgeted purchases: May $104,000 June $110,000 July $102,000

*Cost of goods sold is 40% of sales. Accounts payable is used only for inventory acquisitions.

*Tommy purchases and pay for merchandise 60% in the month of acquisition and 40% in the following month.

*Selling and administration expenses are budgeted at $40,000 for May and are expected to increases 5% per month. They are paid during the month of acquisition. In addition, budgeted depreciation is $10,000 per month.

*Income taxes are $38,400 for July and are paid in the month incurred.

Instructions: Compute the amount of budgeted cash disbursements for July.

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