Question

Cash disbursements scheduleMaris​ Brothers, Inc., needs a cash disbursement schedule for the months of​ April, May, and June and the following information in its preparation.​Sales:February

March $481,000​;

April $535,000​;

May $588,000​;

June $656,000​;

July $625,000​

Purchases are calculated as 57% 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 $7,970

per month. Wages and​ salaries: Base wage and salary costs are fixed at $5,600

per month plus a variable cost of 6.8%

of the current​ month's sales.​Taxes: A tax payment of $54,000

is due in June.Fixed asset​ outlays: New equipment costing $75,000

will be bought and paid for in April.Interest​ payments: An interest payment of $29,800

is due in June.Cash​ dividends: Dividends of $12,800

will be paid in April.Principal repayments and​ retirements: No principal repayments or retirements are due during these months.

Complete the cash disbursements schedule for Maris​ Brothers, Inc.​ below: ​ (Round to the nearest​ dollar.)

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Schedule of Projected Cash Disbursements for Maris Brothers, Inc.

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

$

Answer 1

The cash disbursement schedule for Maris brothers Inc.
	Feb	Mar	April	May	Jun	Jul
Sales		$ 481,000	$ 535,000	$ 588,000	$ 656,000	$ 625,000
Disbursements
Purchases (57%*Next Month Sales)	$ 274,170	$ 304,950	$ 335,160	$ 373,920	$ 356,250
Cash (Purcahses * 12%)			$ 40,219	$ 44,870	$ 42,750
1 month delay (Previous month Purchase * 48%)			$ 146,376	$ 160,877	$ 179,482
2 month delay (Previous previous month Purchase * 40%)			$ 109,668	$ 121,980	$ 134,064
Rent			$ 7,970	$ 7,970	$ 7,970
Wages and salary
Fixed			$ 5,600	$ 5,600	$ 5,600
Variable (Current month sale*6.8%)			$ 36,380	$ 39,984	$ 44,608
Taxes					$ 54,300
Fixed assets			$ 75,000
Interest					$ 29,800
Cash dividends			$ 12,800
Total disbursements			$ 434,013	$ 381,281	$ 498,574