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Culver Company budgeted the following information for 2022: Budgeted purchases of merchandise: May:...

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Accounting

Culver Company budgeted the following information for 2022:

Budgeted purchases of merchandise:

May: $105,000

June: $109,500

July: $101,500

- Cost of goods sold is 40% of sales. Account payable is used only for merchandise inventory acquisitions.

- Culver purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.

- Selling and administrative expenses are budgeted at $30,000 for May and are expected to increase 5% per month. These expenses are paid during the month when incurred. In addition, depreciation is budgeted at $10,000 per month.

- Income taxes are $38,200 for July and are paid in the month incurred.

Compute the amount of budgeted cash disbursements for July?

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