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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

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