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A company has operational expenses of the following
Jan - 250,000
Feb - 350,000
Mar - 275,000
Apr - 250,000
May - $225,000


They pay 60% with cash the month it is incurred. They pay for the rest on credit of which they pay 75% the month after it is incurred and 25% two months after. They also have depreciation in their operational expenses of $10,000 a month, and have a cash disbursement for an annual interest payment of $50,000 in February. Construct a cash disbursement budget for March - May only.

Accounting Basics, Accounting

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