Prepare a schedule of cash disbursements

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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 $54,000 is paid for computer services. Sales revenue is forecast as follows

Month

Sales Revenue

February

$210,000

March

250,000

April

260,000

May

300,000

June

280,000

July

320,000

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

Reference no: EM133053907

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