Due April 29, 2009
Scoremark Store wants to estimate cash disbursements for the first three months of 2008.
Estimated cost of goods sold:
35% of the purchases are paid for in the month they are purchased, with the remainder
paid the following month.
Wages are paid when incurred, and are estimated as:
Other expenses are:
Annual Insurance, paid in January, $9,700
New equipment costing $50,000 will be acquired on an capitalized
lease in February.
The lease payments will $1,500 per month, paid at month end.
Income tax of $12,500 will be paid in March.
Depreciation expense is $2,500 per month in December and January, increasing to $3,000
per month in February and March.
Miscellaneous operating expenses are $2,250 per month, paid in full the month after they
An arrangement has been made with one of the company’s stockholders to purchase his
stock in the company for $75,000 in February.
This stock will be held as treasury stock.
Find the cash disbursements for January, February and March (report an amount for each