Draw a schedule of cash disbursements for April and May

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Question - Cash Disbursement - Timber Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 70 percent of sales. Lumber purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 15 percent of sales and are paid during the month of sale. Other operating costs amounting to 10 percent of sales are to be paid in the month following the month of sale. Additionally, a monthly lease payment of $64,000 is paid for computer services. Sales revenue is forecast as follows

Month

Sales Revenue

February

$220,000

March

260,000

April

270,000

May

310,000

June

290,000

July

330,000

Required - Draw a schedule of cash disbursements for April, May, and June.

Reference no: EM132735606

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