Swift, Inc

Multiple Choice

Swift, Inc. has budgeted its activity for December according to the following information:
1) Sales at $400,000, all for cash.
2) Budgeted depreciation for December is $10,000.
4) The cash balance at December 1 was $10,000.
5) Selling and administrative expenses are budgeted at $40,000 for December and are paid for in cash.
6) The planned merchandise inventory on December 31 and December 1 is $12,000.
7) The invoice cost for merchandise purchases represents 75% of the sales price. All purchases are paid in cash.
How much are the budgeted cash disbursements for December?

A) $230,000
B) $340,000
C) $350,000
D) $328,000