LOADING... and the following information in its preparation.Sales: February $ 52
ID: 2815827 • Letter: L
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LOADING...
and the following information in its preparation.Sales: February
$ 524 comma 000$524,000;
March
$ 501 comma 000$501,000;
April
$ 583 comma 000$583,000;
May
$ 626 comma 000$626,000;
June
$ 645 comma 000$645,000;
July $ 660 comma 000$660,000Purchases: Purchases are calculated as
61 %61%
of the next month's sales,
10 %10%
of purchases are made in cash,
55 %55%
of purchases are paid for 1 month after purchase, and the remaining
35 %35%
of purchases are paid for 2 months after purchase.Rent: The firm pays rent of
$ 8 comma 010$8,010
per month.Wages and salaries: Base wage and salary costs are fixed at
$ 5 comma 900$5,900
per month plus a variable cost of
6.7 %6.7%
of the current month's sales.Taxes: A tax payment of
$ 54 comma 700$54,700
is due in June.Fixed asset outlays: New equipment costing
$ 75 comma 400$75,400
will be bought and paid for in April.Interest payments: An interest payment of
$ 29 comma 800$29,800
is due in June.Cash dividends: Dividends of
$ 12 comma 200$12,200
will be paid in April.
Cash disbursements schedule Maris Brothers, Inc., necds a cash disbursement schcdule tor the months of April, May, and June. Use the tormat given here and the tollowing intormation in its preparation Sales. February $524,000, March $501,000, April $583,000, May $826,000, June S645,000, July S660,000 Purchases Purchases are calculated as 61% o the next month's sales 10% o purchases are made in casi 5 %of purchases are paid or 1 m Rent: The firm pays rent of $8,010 per month Wages and salanes. Base wage and salary costs are xed at $5 900 per month plus a arable cost 6/% of the current mo ns sales. Taxes A tax payment of $54,700 is due in June th a er purchase and the remaining o un ases are e or months a erou ase ed asset outlays: New equipment costng $75.400 will be bought and paid for in April. Interest paymenfs An interest payment of S29,800 is due in June Cash didonos Dvidends of $12,200 will be paid in April Principal repayments and refirements No principal repayments or retirements are de during these monthsExplanation / Answer
Cash disbursement schedule
For April, May and June
Working note:
Purchase is equal to 61% of next months' sale.
Hence, purchase for April = 626,000 x 61%
= $381,860
10% of $381,860 will be paid in April i.e. $38,186.
55% of $381,860 will be paid in May i.e. $381,860 x 55% = $210,023
35% of $381,860 will be paid in June i.e. $381,860 x 35% = $133,651
Similar calculations will be made for other months also
February March April May June July Sales 524,000 501,000 583,000 626,000 645,000 660,000 Purchase: Cash 30,561 35,563 38,160 39,345 40,260 1 month delay 168,086 195,597 210,023 216,398 221,430 2 months delay 106,963 124,470 133,651 137,707 Rent 8,010 8,010 8,010 Wages and salaries: Fixed 5,900 5,900 5,900 Variable 39,061 41,942 43,215 Taxes 0 0 54,700 Equipment 75,400 0 0 Interest 0 0 29,800 Cash dividends 12,200 0 0Related Questions
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