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:

$\backslash$table$[[$Category$,$Guidelines$],[$Purchases$,$Pay half in current and half in following montr$],[$Payroll$,$Pay $70$ percent in current month and $30$ perce$],[$Loan Payments,Pay total amount due each month.$]]$

Predicted activity for selected months follow:

$\backslash$table$[[$Category$,$May,June,July,August$],[$Purchases$,$$$60,000,$$$74,000,$$$79,000,$$$85,000$