Question

P4-9 (similar to)

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

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and the following information in its preparation.​Sales: February

$ 520 comma 000

​;

March

$ 508 comma 000

​;

April

$ 555 comma 000

​;

May

$ 586 comma 000

​;

June

$ 651 comma 000

​;

July $ 648 comma 000​Purchases: Purchases are calculated as

61 %

of the next​ month's sales,

12 %

of purchases are made in​ cash,

48 %

of purchases are paid for 1 month after​ purchase, and the remaining

40 %

of purchases are paid for 2 months after purchase.

​Rent: The firm pays rent of

$ 7 comma 980

per month.

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

$ 5 comma 900

per month plus a variable cost of

6.7 %

of the current​ month's sales.

​Taxes: A tax payment of

$ 54 comma 500

is due in June.

Fixed asset​ outlays: New equipment costing

$ 75 comma 500

will be bought and paid for in April.

Interest​ payments: An interest payment of

$ 30 comma 100

is due in June.

Cash​ dividends: Dividends of

$ 12 comma 800

will be paid in April.

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

Answer 1

		Feb	March	April	May	June	July	August
	Sales	520,000	508,000	555,000	586,000	651,000	648,000
	Disbursements
	Purchases (61% of next months sales)	309,880	338,550	357,460	397,110	395,280
	Payment for purchases:
1	(a): 12% cash	37,186	40,626	42,895	47,653	47,434
2	(b): 48% in next month/1 Month delay		148,742	162,504	171,581	190,613	189,734
3	(c ): 40% after 2 months/2 month delay			123,952	135,420	142,984	158,844	158,112
4	Rent payments	7,980	7,980	7,980	7,980	7,980	7,980
5	Fixed wages	5,900	5,900	5,900	5,900		5,900
6	Variable wages (6.7% of sales)	34,840	34,036	37,185	39,262	43,617	43,416
7	Tax						54,500
8	Fixed asset payments			75,500
9	Interest payment					30,100
10	Dividends			12,800
	Total disbursements = 1+2+3+4+5+6+7+8+9+10			468,716	407,796	462,727