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 and the following information in its preparation. Sales: February $513,000; March $478,000; April $543,000; May $602,000, June $638,000; July $628,000 Purchases: Purchases are calculated as 59% of the next month's sales, 10% of purchases are made in cash, 49% of purchases are paid for 1 month after purchase, and the remaining 41% of purchases are paid for 2 months after purchase. Rent: The firm pays rent of $8,030 per month. Wages and salaries: Base wage and salary costs are fixed at $6,400 per month plus a variable cost of 6.8% of the current month's sales. Taxes: A tax payment of $54,000 is due in June. Fixed asset outlays: New equipment costing $75,500 will be bought and paid for in April. Interest payments: An interest payment of $29,800 is due in June. Cash dividends: Dividends of $12,700 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

May

Jun

Jul

Sales

$

$

$

Disbursements

Purchases

$

$

$

Cash

$

1 month delay

$

2 month delay

$

Rent

$

Wages and salary

Fixed

$

Variable

$

Taxes

$

Fixed assets

$

Interest

$

Cash dividends

$

Total Disbursements

$

Answer 1

Schedule of projected cash disbursement. for Marie's Brothers, Inc.

Particular	february	March	April	May	June	July
Sales	513000	478000	543000	602000	638000	628000
purchases (59% of next month sales)	282020	320270	355180	376420	370520
cash disbursements
Cash purchase (10% of current month purchase	28202	32027	35518	37642	37052
Payment 1 month delay (49% of previous month purchase)		138189.8	156932.3	174038.2	18445.8	181554.8
Payment 2 month delay (41% of purchases 2 months earlier)			115628.2	131310.7	145623.8	15432.2
Rent	8030	8030	8030	8030	8030
Wages & salary (6400+6.8% of sales)	41284	38904	43324	47336	49784	49104
Tax					54000
Fixed asset outley			75500
Interest					29800
Cash dividend			12700
Total cash disbursed			447632.5	398356.9	342735.6

Note: Assumed that all the payments due in a month are paid in the same month itself

Total cash disbursement is calculated only for April, May and June only, since complete particulars for remaining months not available in the question.