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 $481,000; March $510,000; April $562,000; May $594,000; June $626,000; July $658,000 Purchases: Purchases are calculated as 56% of the next month's sales, 10% of purchases are made in cash, 51% of purchases are paid for 1 month after purchase, and the remaining 39% 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 6.6% of the current month's sales. Taxes: A tax payment of $54,100 is due in June. Fixed asset outlays: New equipment costing $74,600 will be bought and paid for in April. Interest payments: An interest payment of $29,700 is due in June. Cash dividends: Dividends of $12,300 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.) May Jun Jul Schedule of Projected Cash Disbursements for Maris Brothers, Inc. Feb Mar Apr Sales $ $ $ Disbursements Purchases A Cash A A 1 month delay 2 month delay A Enter any number in the edit fields and then click Check Answer.

Answer 1

Schedule of Projected Cash Disbursments for Maris Brothers inc.
	Feb	Mar	Apr	May	Jun	Jul
Sales	$4,81,000	$5,10,000	$5,62,000	$5,94,000	$6,26,000	$6,58,000
Disbursements
Purchases
Cash	$28,560	$31,472	$33,264	$35,056	$36,848
1 month Delay		$1,45,656	$1,60,507	$1,69,646	$1,78,786	$1,87,925
2 Month delay			$1,11,384	$1,22,741	$1,29,730	$1,36,718
Rent	$8,000	$8,000	$8,000	$8,000	$8,000	$8,000
Wages and salary:
Fixed	$6,000	$6,000	$6,000	$6,000	$6,000	$6,000
Variable	$31,746	$33,660	$37,092	$39,204	$41,316	$43,428
Taxes			-	-	$54,100
Fixed Assets			$74,600	-	-
Interest			-	-	$29,700
Cash Dividends			$12,300	-	-
Total Disbursments	$3,59,906	$5,39,508	$7,75,787	$7,31,207	$8,52,959	$3,82,071

Answer 2

How did you calculate the one month delay to get the answer?