Cash Disbursements Assume that Ringwood Manufacturing manages its cash flow from its home office. Ringwood controls cash disbursements by category and month. In setting its budget for the next six months, beginning in July, it used the following managerial guidelines: Category Guidelines Purchases Pay 60% in current month and 40% in following month. Payroll Pay half in current month and half in following month. Loan Payments Pay total amount due each month. Predicted activity for selected months follow: Category Purchases Payroll Loan payments May June July August $ 75,000 $ 80,000 $ 70,000 $ 85,000 45,000 40,000 50,000 45,000 15,000 15,000 15,000 15,000 Prepare a schedule showing cash disbursement by account for July and August. Ringwood Manufacturing Schedule of Cash Disbursements For the Months of July and August July August Accounts payable $ 0 $ 0 Payroll 0 0 Loan payments 0 0 Total $ 0 $ 0