Question

Cash disbursements schedule   Maris​ Brothers, Inc., needs a cash disbursement schedule for the months of​ April, May, and June. Use the format given here

and the following information in its preparation.

​Sales:

February $505,000​;

March $518,000​;

April $572,000​;

May $617,000​;

June $670,000​;

July $665,000

​Purchases: Purchases are calculated as

55%

of the next​ month's sales,

9%

of purchases are made in​ cash, 52% of purchases are paid for 1 month after​ purchase, and the remaining 39% of purchases are paid for 2 months after purchase.

​Rent: The firm pays rent of $8,030 per month.

Wages and​ salaries: Base wage and salary costs are fixed at

$6,200 per month plus a variable cost of

6.9%of the current​ month's sales.

​Taxes: A tax payment of $54,300 is due in June.

Fixed asset​ outlays: New equipment costing $74,800 will be bought and paid for in April.

Interest​ payments: An interest payment of $30,100is due in June.

Cash​ dividends: Dividends of $12,000 will be paid in April.

Principal repayments and​ retirements: No principal repayments or retirements are due during these months.

Feb    Mar Apr May Jun Jul

Sales Disbursements

Purchases

Cash

1 month delay

2 month delay

Rent

Wages and salary

Fixed

Variable

Taxes

Fixed assets

Interest

Cash dividends

Total
Disbursements

( Please explain how you got the answer )

Answer 1