Cash Disbursement Timber Company is in the process of preparing its budget for next year....
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Accounting
Cash Disbursement Timber Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 70 percent of sales. Lumber purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 15 percent of sales and are paid during the month of sale. Other operating costs amounting to 10 percent of sales are to be paid in the month following the month of sale. Additionally, a monthly lease payment of $44,000 is paid for computer services. Sales revenue is forecast as follows
Month
Sales Revenue
February
$200,000
March
240,000
April
250,000
May
290,000
June
270,000
July
310,000
Required Prepare a schedule of cash disbursements for April, May, and June. Do not use a negative sign with your answers.
Timber Company
Schedule of Cash Disbursements
April, May, and June
April
May
June
Lumbers purchases
Answer
Answer
Answer
Wages
Answer
Answer
Answer
Operating expenses
Answer
Answer
Answer
Lease payment
Answer
Answer
Answer
Total disbursements
Answer
Answer
Answer
Answer & Explanation
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