Fin419 Principles of Managerial Finance: P4-8 Maris Brothers, Inc. needs a cash disbursement

Fin419 Principles of Managerial Finance
P4-8 Cash Disbursements Schedule
Maris Brothers, Inc. needs a cash disbursement schedule for the months of April, May, and June. Use the format of table 4.9 on page 133 and follow the information in its preparation.
Sales: February = $500, 000; March = $500, 000; April = $560, 000; May = $610, 000; June = $650, 000; July = $650, 000
Purchases: Purchases are calculated as 60% of the next month’s sales, 10% of the purchases are made in cash, 50% of the purchases are paid for 1 month after purchase, and the remaining 40% of purchases are paid for 2 months after purchase.
Rent: The firm pays rent of $8,000 per month.
Wages and salaries: Base wages and salaries costs are fixed at $6,000 per month plus a variable cost of 7% of the current month’s sales.
Taxes: A tax payment of $54,500 is due in June.
Fixed assets outlays: New equipment costing $75,000 will be bought and paid for in April.
Interest payments: An interest payment of $30,000 is due in June.
Cash dividends: Dividends of $12,500 will be paid in April.
Principal repayments and retirements: No principal repayments or retirements are due during these months.
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