=+LG 4 P4–9 Cash disbursements schedule The Coffee Specialist Corporation has approached you to compile a cash disbursement schedule for the months of March, April, and May. Use the following information and Table 4.9 as a guide to prepare this schedule.

Sales: January = $520,000; February = $540,000; March = $550,000;

April = $600,000; May = $660,000; June = $670,000 Purchases: Purchases are calculated as 70% of the following month’s sales, 50%

of purchases are made in cash, 30% of purchases are settled one month after purchase, and the remaining 20% of purchases are settled 2 months after purchase.

Rent: The firm pays rent of $9,500 per month.

Wages and salaries: The fixed wage and salary costs are $7,500 per month plus a variable cost of 6.5% of the current month’s sales.

Taxes: The tax bill to be paid in May amounts to $57,500.

Fixed asset outlays: New equipment will be acquired during March at a cost of

$85,000.

Interest payments: An amount of $32,000 for interest is due in March.

Cash dividends: Dividends of $15,000 will be paid in April.