Prepare a schedule that discloses the firms total cash disbursements for

Prepare a schedule that discloses the firms total

This preview shows page 2 - 3 out of 3 pages.

Prepare a schedule that discloses the firm’s total cash disbursements for January through March. January February March Payment of accounts payable $85,000 Payment of January purchases 276,000 184,000 Payment of February purchases 294,000 196,000 Payment of March purchases 366,000 Cash operating costs 112,000 91,000 154,000 Total cash disbursements $473,000 $569,000 $716,000 2. Schedule of cash disbursements: Payment of January purchases ($460,000): 60% in January; 40% in February = $276,000; $184,000 Payment of February purchases ($490,000): 60% in February; 40% in March = $294,000;
Image of page 2
$196,000 Payment of March purchases ($610,000): 60% in March; 40% in April = $366,000 Prepare a schedule that summarizes the firm’s financing cash flows for January through March. January February March Beginning cash balance $80,000 $80,000 $135,445 Total receipts 436,000 662,000 736,500 Subtotal $516,000 $742,000 $871,945 Less: Total disbursements 473,000 569,000 716,000 Cash excess (deficiency) before financing $43,000 $173,000 $155,945 Financing: Borrowing to maintain $80,000 balance 37,000 Loan principal repaid (37,000) Loan interest paid (555) Ending cash balance $80,000 $135,445 $155,945 3. Loan interest paid in February: $37,000 × 9% × 2/12 = $555
Image of page 3

You've reached the end of your free preview.

Want to read all 3 pages?

  • Spring '14
  • Zeeshan

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes