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 Sales: February $476,000; March $475,000; April $536,000; May $610,000; June $665,000; July $658,000 Purchases: Purchases are calculated as 58% of the next month's sales, 10% of purchases are made in cash, 52% of purchases are paid for 1 month after purchase and the remaining 38% of purchases are paid for 2 months after purchase. Rent: The firm pays rent of $8,000 per month. Wages and salaries: Base wage and salary costs are fixed at $5,700 per month plus a variable cost of 6.6% of the current month's sales. Taxes: A tax payment of $54,500 is due in June. Fixed asset outlays: New equipment costing $74,500 will be bought and paid for in April. Interest payments: An interest payment of $30,400 is due in June. Cash dividends: Dividends of $12,500 will be paid in April. Principal repayments and rotiroments: No principal repayments or retirements are due during these months Feb Mar Apr Jun Jul ay of the 1 month delay 2 month delay Wages and salary ts o Fixed a 1 Variable Taxes Fixed assets Cash dividends Total

Explanation / Answer

Particulars

Feb

Mar

Apr

May

Jun

Jul

Sales

4,76,000

4,75,000

5,36,000

6,10,000

6,65,000

6,58,000

Purchases

2,75,500

3,10,880

3,53,800

3,85,700

3,81,640

Cash

27,550

31,088

35,380

38,570

38,164

1 month delay

-

1,43,260

1,61,657.6

1,83,976

2,00,564

2 month delay

-

-

1,04,690

1,18,134.4

1,34,444

Rent

8,000

8,000

8,000

Wages and Salary:

Fixed

5,700

5,700

5,700

Variable@6.6%

35,376

40,260

43,890

Taxes

-

-

54,500

Fixed Assets

74,500

-

-

Interest

-

-

30,400

Cash Dividends

12,500

-

-

Total Disbursements

4,37,803.6

3,94,640.4

5,15,662

Particulars

Feb

Mar

Apr

May

Jun

Jul

Sales

4,76,000

4,75,000

5,36,000

6,10,000

6,65,000

6,58,000

Purchases

2,75,500

3,10,880

3,53,800

3,85,700

3,81,640

Cash

27,550

31,088

35,380

38,570

38,164

1 month delay

-

1,43,260

1,61,657.6

1,83,976

2,00,564

2 month delay

-

-

1,04,690

1,18,134.4

1,34,444

Rent

8,000

8,000

8,000

Wages and Salary:

Fixed

5,700

5,700

5,700

Variable@6.6%

35,376

40,260

43,890

Taxes

-

-

54,500

Fixed Assets

74,500

-

-

Interest

-

-

30,400

Cash Dividends

12,500

-

-

Total Disbursements

4,37,803.6

3,94,640.4

5,15,662

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