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:

CategoryGuidelinesPurchasesPay half in current and half in following month.PayrollPay 90 percent in current month and 10 percent in following month.Loan PaymentsPay total amount due each month.

Predicted activity for selected months follow:

CategoryMayJuneJulyAugustPurchases$30,000$46,000$48,000$50,000Payroll100,000130,000120,000100,000Loan Payments10,00010,00012,00012,000

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

Waycross Manufacturing

Schedule of Cash Disbursements

For the Months of July and AugustJulyAugustAccounts payablePayrollLoan paymentsTotal

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