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The High Level Corporation has forecast the following sales for the first seven months of...

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The High Level Corporation has forecast the following sales for the first seven months of the year. January February March April May June July $12,000 $14,000 $16,000 $22,000 $12,000 $18,000 $20,000 Monthly material purchases are set equal to 25 percent of forecasted sales for the next month. Of the total material costs, 45 percent are paid in the month of purchase and 50 percent are paid in the following month. Labour costs will run $4,500 per month, and fixed overhead is $2,200 per month. Interest payments on the debt will be $1,000 for both March and June. Finally, the High Level sales people will receive a 2.0% commission on total sales for the first six months of the year, to be paid on June 30. Required: Prepare a month summary of cash payments for the six months from January through June. Suggested format (i.e. optional): Cash Payment Schedule Dec Jan Feb Mar Apr May Jun Jul Purchases Purchases (current month) Purchases (prior month Toual material payments Labour costs Fixed Overhead payments Sales commission 19 of Sales) Totals

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