Given the following information for Lender Company, prepare a properly formatted

Question

Given the following information for Lender Company, prepare a properly formatted cash disbursements budget (using the same format utilized for the recent case study) for the calendar quarter ending March 31, 2018: January February March April Sales $100,000 $110,000 $120,000 $115,000 Purchases $50,000 $60,000 $70,000 $40,000 Ten percent of purchases are paid in cash at the time of purchase. The remaining balance is paid in the month following the purchase. Monthly operating expenses are as follows: Sales salaries $5,000 Depreciation expense $500 Property taxes $1,000 paid at the end of each calendar quarter Sales commissions 1% paid in the month following the sale

Explanation / Answer

Cash disbursements budget Quarter ending March 31, 2018 Particulars January February March Total Purchases $50,000 X 10% =$5,000 $60,000 X 10% =$6,000 $70,000 X 10% =$7,000 $18,000 Purchases $50,000 X 90% =$45,000 $60,000 X 90% =$54,000 $99,000 Sales salaries $5,000 $5,000 $5,000 $15,000 Property taxes $1,000 $1000 Sales commissions $100,000 x 1% = $1,000 $110,000 x 1% = $1,100 $2,100 Total cash disbursements $10,000 $57,000 $68,100 $135,100

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