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P4-9 Cash disbursements schedule Maris Brothers Inc. needs a cash disbursement sched- ule for the months of April, May, and June. Use the format of Table 4.9 and the fol- lowing 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 purchases are made in cash, 50% of purchases are paid for 1 month after pur- chase, 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 wage and salary 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 asset 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. TABLE 4.7 The General Format of the Cash Budget Total cash receipts Less: Total cash disbursements Net cash flow Add: Beginning cash Ending cash Less: Minimum cash balance Required total financing Excess cash balance Jan. Feb. $XXA $XXH XXB XXI $XXC $XXJ XXDXXE $XXE $XXK XXF XXL $XXM $XXG Nov. $XXN XXO $XXP XXQ $XXR XXS $XXT Dec. $XXU XXV $XXW XXR $XXX XXY XXK $XXZ

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