Cash Disbursement Assume Stimson Lumber, headquartered in Portland, Oregon, is in the process of preparing...
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Accounting
Cash Disbursement
Assume Stimson Lumber, headquartered in Portland, Oregon, is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 60% of sales. Lumber purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 20% of sales and are paid during the month of sale. Other operating costs amounting to 5% of sales are to be paid in the month following the month of sale. Additionally, a monthly lease payment of $10,000 is paid for computer services. Sales revenue is forecast as follows:
Month
Sales Revenue
February
$340,000
March
420,000
April
440,000
May
520,000
June
480,000
July
560,000
Required Prepare a schedule of cash disbursements for April, May, and June. Do not use a negative sign with your answers.
Stimson Lumber
Schedule of Cash Disbursements
April, May, and June
April
May
June
Lumbers purchases
Wages
Operating expenses
Lease payment
Total disbursements
Answer & Explanation
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