Cash disbursements scheduleMaris Brothers, Inc., needs a cash disbursement schedule for the months ofApril, May, and June. Use the format given here

LOADING...

and the following information in its preparation.

Sales: February $480,000;

March $486,000;

April $558,000;

May $627,000;

June $657,000;

July $671,000

Purchases: Purchases are calculated as

64% of the next month's sales,

11% of purchases are made in cash,

54 % of purchases are paid for 1 month after purchase, and the remaining

35 % of purchases are paid for 2 months after purchase.

Rent: The firm pays rent of $8,010 per month.

Wages and salaries: Base wage and salary costs are fixed at

$6,000 per month plus a variable cost of 6.8% of the current month's sales.

Taxes: A tax payment of $54,600 is due in June.

Fixed asset outlays: New equipment costing $74,500 will be bought and paid for in April.

Interest payments: An interest payment of $29,800 is due in June.

Cash dividends: Dividends of $12,000 will be paid in April.

Principal repayments and retirements: No principal repayments or retirements are due during these months.

A Schedule of Projected Cash Disbursements for Maris Brothers, Inc.

Feb

Mar

Apr

May

Jun

Jul

Sales

Disbursements

Purchase

Cash

1 month delay

2 month delay

rent

wages and salary fixed

variable

taxes

fixed assets

interest

cash dividends

total disbursements