Cash Disbursements Assume that Waycross Manufacturing manages its cash flow from

Question

Cash Disbursements Assume that Waycross Manufacturing manages its cash flow from its home office. Waycross controls cash disbursements by category and month. In setting its budget for the next six months, beginning in July, it used the following managerial guidelines: Category Guidelines Purchases Pay half in current and half in following month. Payroll Pay 90 percent in current month and 10 percent in following month. Loan Payments Pay total amount due each month. Predicted activity for selected months follow: Category May June July August Purchases $30,000 $48,000 $50,000 $50,000 Payroll 100,000 110,000 140,000 100,000 Loan Payments 10,000 10,000 11,000 11,000 Prepare a schedule showing cash disbursements by account for July and August. Waycross Manufacturing Schedule of Cash Disbursements For the Months of July and August July August Accounts payable $Answer $Answer Payroll Answer Answer Loan payments Answer Answer Total $Answer $Answer

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Answer:-

Waycross Manufaturing Schedule of Cash Disbursements Particulars May June July August $ $ $ $ Purchses $ 30000 48000 50000 50000 Payment of Purchases 50% in current month 15000 24000 25000 25000 50% in following month 15000 24000 25000 Total payment of Purchases (a) 15000 39000 49000 50000 Payroll Amount 100000 110000 140000 100000 90% in current month 90000 99000 126000 90000 10% in following month 10000 11000 14000 Total Payroll amonut paid (b) 90000 109000 137000 104000 Loan payments (c) 10000 10000 11000 11000 Total cash disbursements (d=a+b+c) 115000 158000 197000 165000

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