Module 22 Operational Budgeting and Profit Planning 22-30 LO3 E22-31. Cash Disbursements Assume that Ringwood Manufacturing manages its cash flow from its home office. Ringwood 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: Homewo. ( Category Guidelines Purchases ................... Pay half in current and half in following month. Payroll. Pay 70 percent in current month and 30 percent in following month. Loan payments ......... Pay total amount due each month. Predicted activity for selected months follow: Category May June July August Purchases ..................................... $ 60,000 $ 74,000 $ 79,000 $ 85,000 Payroll.. .. 130,000 140,000 150,000 130,000 .... 40,00040,00045,00045,000 Loan payments COROLLLLLLL LLLLLLLLLLir40, o tom Required Prepare a schedule showing cash disbursements by account for July and August