financeMaris Brothers, Inc., needs a cash disbursement schedule for the months of April, May, and June. Using the format of Table $4.9$ (on page 130 ) and the given information in its preparation.
Sales: February $=\$ 500,000 ;$ March $=\$ 500,000$; April $=\$ 560,000$;
May $=\$ 610,000 ;$ June $=\$ 650,000 ; \mathrm{July}=\$ 650,000$
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 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 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: $\$ 12,500$ will be paid in April.
Principal repayments and retirements: No principal repayments or retirements are due during these months. 15th Edition•ISBN: 9781337520164John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine249 solutions
5th Edition•ISBN: 9781118898208Jack T. Marchewka346 solutions
5th Edition•ISBN: 9781118898208Jack T. Marchewka346 solutions
15th Edition•ISBN: 9781337520164John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine249 solutions
