Scanlon Corporation has estimated its activity for April as follows: Sales: $900,000 Gross profit (based on sales): 30% Increase in accounts receivable during month: 15,000 Increase in finished goods inventory during month: 25,000 Total selling and administrative costs: 80,000 Depreciation included in selling and administrative costs: 15,000 Scanlon has no raw material or work in process inventory at the beginning or end of April. On the basis of the above, what are estimated cash disbursements for April

On the basis of the above, Scanlon Corporation's estimated cash disbursements for April is: $695,000.

Data and Calculations:

Sales:                                                                                   $900,000

Gross profit (based on sales): 30%                                      270,000

Cost of goods sold = (Sales - Gross profit)                       $630,000

Increase in accounts receivable during month:                    15,000

Increase in finished goods inventory during month:           25,000

Total selling and administrative costs:                                 80,000

Depreciation included in selling and administrative costs: 15,000

Cash spent on selling and administrative costs =          $65,000 ($80,000 - $15,000)

Cash disbursements for April:

Cost of goods sold =             $630,000

Selling and admin. (cash) =       65,000

Total cash disbursements = $695,000

Learn more about cash disbursements here:

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough