Cash disbursements schedule The Coffee Specialist Corporation has approached you to compile a cash disbursement schedule for the months of March, April, and May. Use the following information to prepare this schedule.
Cash disbursements schedule The Coffee Specialist Corporation has approached you to compile a cash disbursement schedule for the months of March, April, and May. Use the following information to prepare this schedule.
Sales: January = $520,000; February = $540,000; March = $550,000; April = $600,000; May = $660,000; June = $670,000
Purchases: Purchases are calculated as 70% of the following month’s sales, 50% of purchases are made in cash, 30% of purchases are settled one month after purchase, and the remaining 20% of purchases are settled 2 months after purchase.
Rent: The firm pays rent of $9,500 per month.
Wages and salaries: The fixed wage and salary costs are $7,500 per month plus a variable cost of 6.5% of the current month’s sales.
Taxes: The tax bill to be paid in May amounts to $57,500.
Fixed asset outlays: New equipment will be acquired during March at a cost of $85,000.
Interest payments: An amount of $32,000 for interest is due in March.
Cash dividends: Dividends of $15,000 will be paid in April.
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