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Crush Can Inc. provided the following information:
April May June
Projected merchandise purchases $184,000 $156,000 $132,000
Crush Can pays 40% of merchandise purchases in the month purchased and 60% in the following month.
General operating expenses are budgeted to be $62,000 per month of which depreciation is $8,000 of this amount. Hoover pays operating expenses in the month incurred.
Crush Can makes loan payments of $7,000 per month of which $700 is interest and the remainder is principal.
Instructions: Calculate budgeted cash disbursements for June.
What are the differences between an outlay for a capital project and a capital outlay from the General Fund or special revenue fund?
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