Cash Disbursements

Assume that Waycross Manufacturing manages its cash flow from its home office. Waycross 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 half in current and half in following month.

Payroll Pay $80$ percent in current month and $20$ percent in following month.

Loan Payments Pay total amount due each month.

Predicted activity for selected months follow:

Category May June July August

Purchases $$30,000$ $$42,000$ $$52,000$ $$52,000$

Payroll $100,000110,000130,000100,000$

Loan Payments $10,00010,00014,00014,000$

Prepare a schedule showing cash disbursements by account for July and August.

Waycross Manufacturing

Schedule of Cash Disbursements

For the Months of July and August

July August

Accounts payable Answer

$47,000$

Answer

$52,000$

Payroll Answer

$126,000$

Answer

$106,000$

Loan payments Answer

$14,000$

Answer

$14,000$

Total Answer

$187,000$

Answer

$172,000$