Question
Cash Disbursements Let's say Waycross Manufacturing manages its cash flow from its home office. Waycross controls cash disbursements by category and month. In setting its
Cash Disbursements
Let's say 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
$ 44,000
$ 48,000
$ 50,000
Payroll
100,000
110,000
120,000
100,000
Loan payments
10,000
10,000
15,000
15,000
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
?
?
Payroll
?
?
Loan payments
?
?
Total
?
?
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Accounting For Governmental And Nonprofit Entities
Authors: Jacqueline Reck, Suzanne Lowensohn, Daniel Neely
19th Edition
1260118851, 9781260118858
