P4-8 Cash disbursements schedule Maris Brothers, Inc., needs a cash disbursement schedule for the months of April, May, and June. Use the format of Table 4.9 (on page 130) 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 as $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.
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