Cash disbursements schedule Maris Brothers, Inc., needs a cash disbursement schedule for the months of April, May, and June. Use the format of Table 3.9 and the following information in its preparation.
Sales: February = $500,000; March = $500,000; April = $560,000; May = $610,000; June = $650,000; July = $650,000
Purchases: Purchases are calculated as 60% of the next month’s sales, 10% of purchases are made in cash, 50% of purchases are paid for 1 month after purchase, and the remaining 40% of purchases are paid for 2 months after purchase.
Rent: The firm pays rent of $8,000 per month.
Wages and salaries: Base wage and salary costs are fixed at $6,000 per month plus a variable cost of 7% of the current month’s sales. Taxes: A tax payment of $54,500 is due in June.
Fixed asset outlays: New equipment costing $75,000 will be bought and paid for in April.
Interest payments: An interest payment of $30,000 is due in June. Cash dividends: Dividends of $12,500 will be paid in April.
Principal repayments and retirements: No principal repayments or retirements are due during these months.