Using our example, Leed Company, we need the information from the cash payments of merchandise we just calculated, cash payments for direct labor $($all direct labor paid in the quarter it was incurred$),$ cash payments for manufacturing overhead and cash payments for selling and administrative expenses. But, we also need information on dividends payments, and income taxes.

Income taxes are assumed to be $40\%$ of budgeted income before income taxes and are paid in the next quarter. $*$Income taxes payable on January $1$ were $$100,000.$ We assume that $$40,000$ of dividends will be paid in the second quarter and $$80,000$ in the third quarter. Also, Leed plans to expand operations into a new building that will cost $$650,000$ in Quarter

$4.$ Leed plans to pay cash for the new building.

The complete schedule of cash payments would look like this:

Question $5$: schedule of cash payments $15$ PTS

Qtr $1$

Qtr $2$

Qtr $3$

Qtr $4$

Total cash payments

$\backslash$table$[[$Budget direct labor,$126,000,192,000,132,000,156,000],[$Cash PMT O$/$H$,80,750,89,000,81,500,80,750],[\backslash$table$[[$Cash PMT selling$],[$and admin$]],110,000,160,000,120,000,130,000],[$Cash Pay income tax,$100,000,57,500,270,000,100,000]]$

Cash pmt dividends

Cash pmt new bldg

Total Cash Pmt

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$12pt$

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