Question: Please create a cash disbursements table for the company.

Assume level sales; a 45-day collection period implies 1/2 of a month's sales are collected in the subsequent month and 1/2 in the second month after sale.

Information for the first-quarter for the Company;

• All sales on credit. The sales forecast is:

January: $55,000

February: $65,000

March: $65,000

April: $60,000

• November sales were $80,000; December sales were $95,000; the average accounts receivable period is 45 days; December 31st receivables were $135,000.
• Wages, taxes, and other expenses are 30% of sales.
• Raw materials are purchased on credit with an average payable period of 30 days. Raw materials are ordered two months in advance of forecasted sales and are 50% of sales.
• The annual cash dividend of $100,000 is to be paid in March.
• No capital expenditures are planned for the first three months.
• The beginning cash balance is $41,000. The minimum cash balance is $25,000.