P4-9 Cash disbursements schedule Maris Brothers Inc. needs a cash disbursement sched- ule for the months of April, May, and June. Use the format of Table 4.9 and the fol- lowing information in its preparation. Sales: February = $500,000; March = $500,000; April = $560,000; May = $610,000; June = $650,000; July = $650,000 Purchases: Purchases are calculated as 60% of the next month's sales, 10% of purchases are made in cash, 50% of purchases are paid for 1 month after pur- chase, and the remaining 40% of purchases are paid for 2 months after purchase. Rent: The firm pays rent of $8,000 per month. Wages and salaries: Base wage and salary costs are fixed at $6,000 per month plus a variable cost of 7% of the current month's sales. Taxes: A tax payment of $54,500 is due in June. Fixed asset outlays: New equipment costing $75,000 will be bought and paid for in April. Interest payments: An interest payment of $30,000 is due in June. Cash dividends: Dividends of $12,500 will be paid in April. Principal repayments and retirements: No principal repayments or retirements are due during these months. CHAPTER 4 Long- and Short-Term Financial Planning 161 TABLE 4.9 A Schedule of Projected Cash Disbursements for Coulson Industries ($000) Aug. $70 $7 Sept. $140 $14 Oct. $280 $ 28 Nov. $210 $ 21 Dec. $140 $14 49 Purchases (0.70 X sales) Cash purchases (0.10) Payments of A/P: Lagged 1 month (0.70) Lagged 2 months (0.20) Rent payments Wages and salaries Tax payments Fixed-asset outlays Interest payments Cash dividend payments Principal payments Total cash disbursements 57 563 $213