FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
Purchases
Payroll
Loan Payments Pay total amount due each month.
Guidelines
Pay half in current and half in following month.
Pay 80 percent in current month and 20 percent in following month.
Predicted activity for selected months follow:
May June July August
$30,000 $42,000 $52,000 $52,000
Payroll
100,000 110,000 130,000 100,000
Loan Payments 10,000 10,000 14,000 14,000
Category
Purchases
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 $
Payroll
Loan payments
Total
$
$
$
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Transcribed Image Text: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 Purchases Payroll Loan Payments Pay total amount due each month. Guidelines Pay half in current and half in following month. Pay 80 percent in current month and 20 percent in following month. Predicted activity for selected months follow: May June July August $30,000 $42,000 $52,000 $52,000 Payroll 100,000 110,000 130,000 100,000 Loan Payments 10,000 10,000 14,000 14,000 Category Purchases 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 $ Payroll Loan payments Total $ $ $
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