Cash Disbursement

Timber Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 70 percent of sales. Lumber purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 15 percent of sales and are paid during the month of sale. Other operating costs amounting to 10 percent of sales are to be paid in the month following the month of sale. Additionally, a monthly lease payment of $24,000 is paid for computer services. Sales revenue is forecast as follows:

MonthSales Revenue

February $180,000

March $220,000

April $230,000

May $270,000

June $250,000

July $290,000

Required

Prepare a set schedule of cash disbursements for April, May, and June.

Do notuse a negative sign with your answers.

Timber Company Schedule of Cash Disbursements April, May, and June

April May June

Lumbers purchases April: May: June:

$Answer $Answer $Answer

Wages: April: May: June:

$Answer $Answer $Answer

Operating expenses April: May: June:

$Answer $Answer $Answer

Lease payment April: May: June:

$Answer $Answer $Answer

Total disbursements April: May: June:

$Answer $Answer $Answer