Question

In: Accounting

Cash Disbursement Timber Company is in the process of preparing its budget for next year. Cost...

Cash Disbursement
Timber Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 70 percent of sales. Lumber purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 15 percent of sales and are paid during the month of sale. Other operating costs amounting to 10 percent of sales are to be paid in the month following the month of sale. Additionally, a monthly lease payment of $14,000 is paid for computer services. Sales revenue is forecast as follows

Month Sales Revenue
February $170,000
March 210,000
April 220,000
May 260,000
June 240,000
July 280,000

Required
Prepare a schedule of cash disbursements for April, May, and June.
Do not use a negative sign with your answers.

Timber Company
Schedule of Cash Disbursements
April, May, and June
April May June
Lumbers purchases $Answer $Answer $Answer
Wages Answer Answer Answer
Operating expenses Answer Answer Answer
Lease payment Answer Answer Answer
Total disbursements $Answer $Answer $Answer


Solutions

Expert Solution

ANSWER:-

Timber Company
Schedule of Cash Disbursements
April May & June
April May June
Lumbers Purchases $182,000 $168,000 $196,000
Wages $33,000 $39,000 $36,000
Operating Expenses $21,000 $22,000 $26,000
Lease Payment $14,000 $14,000 $14,000
Total Disbursements $250,000 $243,000 $272,000

Workings:-

Lumbers Purchases Calculation =260000*70/100(260000*70%) =240000*70% =280000*70%
Wages Calculation =220000*15/100(220000*15%) =220000*15% =240000*15%
Operating Expenses Calculation =210000*10/100(210000*10%) =220000*10% =260000*10%

If you have any queries please ask me in the comment i am here for help you. Please do not direct thumbs down just ask if you have any query. And if you like my work then please appreciates with up vote.

                                                     ****THANK YOU***********


Related Solutions

Cash Disbursement Timber Company is in the process of preparing its budget for next year. Cost...
Cash Disbursement Timber Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 70 percent of sales. Lumber purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 15 percent of sales and are paid during the month of sale. Other operating costs amounting to 10 percent of sales are to be paid in the month following the month of sale....
Justin Company is in the process of preparing its budget for next year. Cost of goods...
Justin Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 60 percent of sales. Merchandise purchases are to be made during the month preceding the month of the sales. Button pays 60 percent in the month of purchase and 40 percent in the month following. Wages are estimated at 20 percent of sales and are paid during the month of sale. Other operating costs amounting to 10 percent of...
Company is in the process of preparing its budget for next year. Cost of goods sold...
Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 60 percent of sales. Merchandise purchases are to be made during the month preceding the month of the sales. Button pays 60 percent in the month of purchase and 40 percent in the month following. Wages are estimated at 20 percent of sales and are paid during the month of sale. Other operating costs amounting to 10 percent of sales...
ABC Company is in the process of preparing a budget for the upcoming year. The marketing...
ABC Company is in the process of preparing a budget for the upcoming year. The marketing department has just increased the number of units in the sales budget by a significant 50% as compared to the last sales budget that was prepared for the year. Explain the impact this change will have on the Contribution Margin Income Statement. Be specific about… how the components of the Income Statement will be affected. what company managers must do differently to implement the...
A professional football team is preparing its budget for the next year. One component of the...
A professional football team is preparing its budget for the next year. One component of the budget is the revenue that they can expect from ticket sales. The home venue, Dylan Stadium, has five different seating zones with different prices. Key information is given below. The demands are all assumed to be normally distributed. Seating Zone Seats Available Ticket Price Mean Demand Standard Deviation seat zones - Seat availability - Ticket Price - Mean demand - standard deviation. First Level...
A professional football team is preparing its budget for the next year. One component of the...
A professional football team is preparing its budget for the next year. One component of the budget is the revenue that they can expect from ticket sales. The home venue, Dylan Stadium, has five different seating zones with different prices. Key information is given below. The demands are all assumed to be normally distributed. Seating Zone Seats Available Ticket Price Mean Demand Standard Deviation First Level Sideline 15,000 $1000.00 14,500 750 Second Level 5,000 $90.00 4,750 500 First Level End...
Rolodex Inc. is in the process of determining its capital budget for the next fiscal year....
Rolodex Inc. is in the process of determining its capital budget for the next fiscal year. The firm’s current capital structure, which it considers to be optimal, is contained in the following balance sheet: Note: For this problem, use the book value of the items to get the capital structure. However, you normally want to use the market values. Long-term debt is the only debt capital structure account. Add common stock, capital in excess of par, and RE to get...
Papst Company is preparing its cash budget for the month of May. The following information is...
Papst Company is preparing its cash budget for the month of May. The following information is available concerning its accounts receivable (based on sales made to customers on open account): Actual credit sales for March $ 130,000 Actual credit sales for April $ 160,000 Estimated credit sales for May $ 210,000 Estimated collections in the month of sale 25 % Estimated collections in the first month after the month of sale 60 % Estimated collections in the second month after...
Roan’s manufacturing is preparing its cash budget for the first two months of the upcoming year....
Roan’s manufacturing is preparing its cash budget for the first two months of the upcoming year. The following information concerns the company’s upcoming cash receipts and disbursements. Sales are 65% cash and 35% credit. Credit sales are collected 30% in the month of sale and the remainder in the month after the sale. Actual sales in December were $51,000. January sales are budgeted to be $60,000; February sales are budgeted to be $69,000 Actual purchases of direct materials in December...
Roan’s manufacturing is preparing its cash budget for the first two months of the upcoming year....
Roan’s manufacturing is preparing its cash budget for the first two months of the upcoming year. The following information concerns the company’s upcoming cash receipts and disbursements. Sales are 65% cash and 35% credit. Credit sales are collected 30% in the month of sale and the remainder in the month after the sale. Actual sales in December were $51,000. January sales are budgeted to be $60,000; February sales are budgeted to be $69,000 Actual purchases of direct materials in December...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT