Cash disbursements schedule Maris Brothers, Inc., needs a cash disbursement sche

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 $500,000; March $510,000; April $540,000; May $629,000; June $642,000; July $636,000 Purchases Purchases are calculated as 61% ofthe next month's sales 10% of purchases are made in cash, 51% of purchases are paid for 1 month after purchase, and the remaining 39% of purchases are paid for 2 months af purchase Rent: The firm pays rent of $7,960 per month wages and salaries. Base wage and salary costs are fixed at $5600 per month plus a variable cost of 6.8% of the current month's sales. Taxes: A tax payment of $54,200 is due in June Fixed asset outlays: New equipment costing $75,300 will be bought and paid for in April Interest payments: An interest payment of $30,000 is due in June Cash dividends: Dividends of $12,500 will be paid in April. Principal repayments and retirements: No principal repayments or retirements are due during these months. Schedule of Projected Cash Disbursements for Maris Brothers, Inc Feb Mar pr Ma Jun Jul 500,000 S 510,000 540,000 Sales Disbursements Purchases S 311,100 S 329,400 383,690 S 38,369 S 167,994 Cash 1 month delav

Explanation / Answer

Schedule of Cash Disbursement for Moris Brothers for the monhs of April May and June Feb Mar Apr May June Jul Sales $500,000 $510,000 $540,000 $629,000 $642,000 $636,000 Disbursements Purchases $311,100 $329,400 $383,690 $391,620 $387,960 Cash Purchases $31,110 $32,940 $38,369 $39,162 $38,796 1 Month Delay $158,661 $167,994 $195,682 $199,726 2 Month Delay $121,329 $128,466 $149,639 Rent $7,960 $7,960 $7,960 Wages & Salary Fixed $5,600 $5,600 $5,600 Variable $36,720 $42,772 $43,656 Taxes $54,200 Fixed Asset $75,300 Interest $30,000 Cash Dividend $12,500 Total Disbursement $465,772 $419,642 $529,577

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.