Question 2: XYZ Co., needs a cash disbursement schedule for the months of April, May, and June. • Sales: February $500,0

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Question 2 Xyz Co Needs A Cash Disbursement Schedule For The Months Of April May And June Sales February 500 0 1 (58.41 KiB) Viewed 71 times

Question 2: XYZ Co., needs a cash disbursement schedule for the months of April, May, and June. • Sales: February $500,000; March $500,000; April $560,000; May $610,000; June $650,000; 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: Dividends of $12,500 will be paid in April.