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Maris Brothers, Inc., needs a cash disbursement schedule for the months of April, May, and June. Use the format given here

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and the following information in its preparation.

Sales: February

$518,000;

March

$518,000;

April

$577,000;

May

$618,000;

June

$659,000;

July $658,000

Purchases: Purchases are calculated as

57%

of the next month's sales,

10%

of purchases are made in cash,

47%

of purchases are paid for 1 month after purchase, and the remaining

43%

of purchases are paid for 2 months after purchase.

Rent: The firm pays rent of

$8,020

per month.

Wages and salaries: Base wage and salary costs are fixed at

$6,200

per month plus a variable cost of

7.3%

of the current month's sales.

Taxes: A tax payment of

$54,800

is due in June.

Fixed asset outlays: New equipment costing

$74,700

will be bought and paid for in April.

Interest payments: An interest payment of

100$30,100

is due in June.

Cash dividends: Dividends of

$12,600

will be paid in April.

Principal repayments and retirements: No principal repayments or retirements are due during these months.

Feb

Mar

Apr

May

Jun

Jul

Sales

$

$

$

Disbursements

Purchases

$

$

$

Cash

$

1 month delay

$

2 month delay

$

Rent

$

Schedule of Projected Cash Disbursements for Maris Brothers, Inc.

Feb

Mar

Apr

May

Jun

Jul

Sales

$

Disbursements

Purchases

$

Cash

$

1 month delay

$

2 month delay

$

Rent

$

Wages and salary

Fixed

$

Variable

$

Taxes

$

Fixed assets

$

Interest

$

Cash dividends

$

Total Disbursements

$

Wages and salary

Feb

Mar

Apr

May

Jun

Jul

Sales

$

$

Disbursements

Purchases

$

Cash

$

1 month delay

$

2 month delay

$

Rent

$

Wages and salary

Fixed

$

Variable

$

Taxes

$

Fixed assets

$

Interest

$

Cash dividends

$

Total Disbursements

$

Fixed

$

Variable

$

Taxes

$

Fixed assets

$

Interest

$

Cash dividends

$

Total Disbursements

$

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