Problem 4-21 Schedule of cash payments (L04-2] The Denver Corporation has forecast the following sales for the first seven months of the year January 5 26,000 February 28.000 March 30,000 April 36,000 May 26,000 June 32,000 July 34,890 Monthly material purchases are set equal to 20 percent of forecast sales for the next month of the total material costs, 30 percent are paid in the month of purchase and 70 percent in the following month Labor costs will run $5.600 per month, and fixed overhead is $10,000 per month. Interest payments on the debt will be $4,600 for both March and June Finally, the Denver salesforce will receive a 100 percent commission on total sales for the first six months of the year, to be paid on June 30 Prepare a monthly summary of cash payments for the six-month period from January through June (Note: Compute prior December purchases to help get total material payments for January) Denver Corporation Cash Payments Schedule February March December January April May June July Sales Purchases Payment to material purchases Monthly labor cost Monthly feed overhead Interest compense Sales commission expense Total payments 5 os Os 05 05 5