Eastmark stores wants to estimate cash disbursement for cash budgeting purposes for the first three months of 2018 from the data given below.

Cost of merchandise sold estimated

GH

2017 December225,000

2018 January250,000

February280,000

March210,000

Thirty-five percent of the cost of merchandise is to be paid for in the month of sales and 65 percent of the cost is to be paid for in the month following the month of sale.

Wages for each month are estimated as follows:Ghc

2017 December23,000

2018 January26,000

February31,000

March25,000

Wages are all paid for as incurred.

Utilities are to be paid every other month at the amount of Ghc 320 per month. The first payment is to be made in February.

Six months rent and insurance amounting to a total of Chic 9,700 is to be paid in January.

An income tax of Ghc 12,500 is to be paid in March

Depreciation on office equipment has been estimated at Ghc 7,500 for the year.

New equipment costing Ghc 50,000 is to be acquired in February with a down payment of Ghc 4,000 required at date of purchase

Other operating expenses have been estimated at Ghc2,250 per month, which is to be paid each month.

Required:

Prepare a cash disbursement budget for each of the first three months of 2018.