Financial budgets: cash outflows Country Club Road Nurseries grows and LO 3 sells garden plants. The nursery is active between January and October each year. During January, the potting tables and equipment are prepared. The pot¬ ting and seeding are done in February. In March and April, the plants are culti¬ vated, watered, and fertilized. May and June are the peak selling months. July, August, and September are the peak months for visiting customers in their homes to provide them with advice and help solve their problems. During Oc¬ tober, the equipment and buildings are secured for the winter months, and in November and December, full-time employees take their paid holidays and the business is closed.

The nursery employs 15 full-time staff and, depending on the season, up to 20 part-time staff. The full-time staff members are paid an average wage of $2700 per month and work 160 hours per month.

The part-time staff members are paid $10 per hour. Because the nursery re¬ lies on local students for part-time work, there is no shortage of trained people willing to work the hours that are available. The ratio of full-time employee hours worked to part-time employee hours worked is as follows: January 5:1; February, 5:1; March, 3:1; April, 3:1, May, 1:1; June, 1:1; July, 1:1; August 1:1; September, 2:1; and October, 4:1. Because part-time students are mainly used for moving and selling activities, their work creates very little incremental support costs.

Capacity-related costs, other than wages, associated with this operation are about $55,000 per month. The cost drivers in this operation are the activities that the full-time employees undertake. These cost drivers are proportional to the hours worked by the full-time employees. The flexible costs depend on the season and reflect the common employee activities during that season. Average flexible costs per employee hour worked are as follows: January, $15; February, $15; March, $15; April, $15; May, $5; June, $5; July, $20; August, $20; Septem¬ ber, $20; and October, $10. These flexible costs include both support items, such as power and water, and direct items such as soil and pots. Assume that all expenses are paid in the month that they are incurred.

Based on the information provided, prepare a cash outflow statement for the upcoming year.

(LO 8)