Question

Cash Disbursements
Assume that Waycross Manufacturing manages its cash flow from its home office. Waycross controls cash disbursements by category and month. In setting its budget for the next six months, beginning in July, it used the following managerial guidelines:

Category	Guidelines
Purchases	Pay half in current and half in following month.
Payroll	Pay 70 percent in current month and 30 percent in following month.
Loan Payments	Pay total amount due each month.

Predicted activity for selected months follow:

Category	May	June	July	August
Purchases	$30,000	$40,000	$48,000	$50,000
Payroll	100,000	120,000	130,000	100,000
Loan Payments	10,000	10,000	11,000	11,000

Prepare a schedule showing cash disbursements by account for July and August.

Waycross Manufacturing Schedule of Cash Disbursements For the Months of July and August
	July	August
Accounts payable	$Answer	$Answer
Payroll	Answer	Answer
Loan payments	Answer	Answer
Total	$Answer	$Answer

Answer 1

Waycross Manufacturing
Schedule of Disbursement
For the Month of July and August
	July	August
Account Payable
June ($40000 *50%)	$20,000
July ($48000*50%)	$24,000	$24,000
August ($50000*50%)		$25,000
Total (a)	$44,000	$49,000
Payroll
June ($120000*30%)	$36,000
July ($130000*70%) ($130000*30%)	$91,000	$39,000
August($100000*70%)		$70,000
Total (b)	$127,000	$109,000
Loan Payment ( c)	$11,000	$11,000
Total (a+b+c)	$182,000	$169,000