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5. P4-8: Cash Disbursements Schedule, p. 148 Ma...

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5. P4-8: Cash Disbursements Schedule, p. 148 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. A Schedule of Projected Cash Disbursements for Coulson Industries ($000) Aug. Sept. Oct. Nov. Dec. Purchases (0.70 x sales) $70 $140 $280 $210 $140 Cash purchases (0.10) $7 $14 $28 $21 $14 Payments of A/P: Lagged 1 month (0.70) 49 98 196 147 Lagged 2 months (0.20) 14 28 56 Rent payments 5 5 5 Wages and salaries 48 38 28 Tax payments 25 Fixed-asset outlays 130 Interest payments 10 Cash dividend payments 20 Principal payments 20 Total cash disbursements $7 $63 $213 $418 $305 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. Principle repayments and retirements: No principal repayments or retirements are due during these months.

 

Paper#4014 | Written in 18-Jul-2015

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