Question

--- Please Show excel formulas, thanks---

Shamu Corporation is in the process of preparing its budget for next year. Cost of goods sold has

been estimated at 60 percent of sales. Merchandise purchases are to be made during the month

preceding the month of the sales. Button pays 60 percent in the month of purchase and 40

percent in the month following. Wages are estimated at 20 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 sale.

Month                                  Sales Revenue

December                           $170,000

January                                 250,000

February                              120,000

March                                   200,000

April                                       160,000

Prepare a schedule of cash disbursements for January, February, and March

--- Please Show excel formulas, thanks---

Answer 1

	Schedule of Cash Disbursement:
	Particulars	January	February	March
	Payment for Merchandise	103200	100800	105600
	Wages(20% of Sales)	34000	50000	24000
	Other Operating Costs(10% of Sales)	17000	25000	12000
	Total	154200	175800	141600
	Working Note:
	Particulars	December	January	February	March	April
	Sales Revenue	170000	250000	120000	200000	160000
	Cost of Goods(60% of Sales)	102000	150000	72000	120000	96000
	PurchaseBudget:	January	February	March
	Merchandise Purchase	72000	120000	96000
	(Of Next Month Cost of Goods)
	In the Month (60% of Purchase)	43200	72000	57600
	In the Following Month (40% of Purchase)	60000	28800	48000
	Total	103200	100800	105600