Question

Cash disbursements schedule Maris Brothers, Inc., needs a cash disbursement schedule for the months of April, May, and June. Use the format given here i and the following information in its preparation. Sales: February $505,000; March $522,000; April $575,000; May $597,000; June $653,000; July $643,000 Purchases: Purchases are calculated as 65% of the next month's sales, 10% of purchases are made in cash, 47% of purchases are paid for 1 month after purchase, and the remaining 43% of purchases are paid for 2 months after purchase. Rent: The firm pays rent of $8,020 per month. Wages and salaries: Base wage and salary costs are fixed at $6,000 per month plus a variable cost of 6.8% of the current month's sales. Taxes: A tax payment of $54,400 is due in June. Fixed asset outlays: New equipment costing $75,200 will be bought and paid for in April. Interest payments: An interest payment of $29,700 is due in June. Cash dividends: Dividends of $12,100 will be paid in April. Principal repayments and retirements: No principal repayments or retirements are due during these months. Complete the cash disbursements schedule for Maris Brothers, Inc. below: (Round to the nearest dollar.) Schedule of Projected Cash Disbursements for Maris Brothers, Inc. Feb Mar Apr Sales $ 505,000 $ 522,000 $ 575,000 May Jun Jul

Answer 1

The answer is below

Schedule of Projected Cash Disbursements for Maris Brothers, Inc
	Feb	Mar	Apr	May	June	July
Sales	505000	522000	575000	597000	653000	643000
Disbursements
Purchases	339300	373750	388050	424450	417950
Cash			38805	42445	41795
1 month delay			175663	182384	199492
2 month delay			145899	160713	166862
Rent			8020	8020	8020
Wages & Salary
Fixed			6000	6000	6000
Variable			39100	40596	44404
Taxes			0	0	54400
Fixed Assets			75200	0	0
Interest			0	0	29700
Cash dividends			12100	0	0
Total Disbursements			500787	440157	550672