Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Maris Brothers, Inc., needs a cash disbursement schedule for the months of April, May, and June. Use the format given here LOADING... and the following

Maris Brothers, Inc., needs a cash disbursement schedule for the months of April, May, and June. Use the format given here

LOADING...

and the following information in its preparation.

Sales: February

$518,000;

March

$518,000;

April

$577,000;

May

$618,000;

June

$659,000;

July $658,000

Purchases: Purchases are calculated as

57%

of the next month's sales,

10%

of purchases are made in cash,

47%

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

43%

of purchases are paid for 2 months after purchase.

Rent: The firm pays rent of

$8,020

per month.

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

$6,200

per month plus a variable cost of

7.3%

of the current month's sales.

Taxes: A tax payment of

$54,800

is due in June.

Fixed asset outlays: New equipment costing

$74,700

will be bought and paid for in April.

Interest payments: An interest payment of

100$30,100

is due in June.

Cash dividends: Dividends of

$12,600

will be paid in April.

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

Feb

Mar

Apr

May

Jun

Jul

Sales

$

$

$

Disbursements

Purchases

$

$

$

Cash

$

1 month delay

$

2 month delay

$

Rent

$

Schedule of Projected Cash Disbursements for Maris Brothers, Inc.

Feb

Mar

Apr

May

Jun

Jul

Sales

$

Disbursements

Purchases

$

Cash

$

1 month delay

$

2 month delay

$

Rent

$

Wages and salary

Fixed

$

Variable

$

Taxes

$

Fixed assets

$

Interest

$

Cash dividends

$

Total Disbursements

$

Wages and salary

Feb

Mar

Apr

May

Jun

Jul

Sales

$

$

Disbursements

Purchases

$

Cash

$

1 month delay

$

2 month delay

$

Rent

$

Wages and salary

Fixed

$

Variable

$

Taxes

$

Fixed assets

$

Interest

$

Cash dividends

$

Total Disbursements

$

Fixed

$

Variable

$

Taxes

$

Fixed assets

$

Interest

$

Cash dividends

$

Total Disbursements

$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Fast And Frugal Finance

Authors: William P. Forbes, Aloysius Igboekwu, Shabnam Mousavi

1st Edition

0128124954, 978-0128124956

More Books

Students also viewed these Finance questions