Required:Prepare a schedule of cash disbursements for April, May, and June.
Commodore Company, a retailer, has developed the sales budget for the next six months of its rolling budget. Gross profit has averaged 35 percent of sales over the last 3 months and this trend is expected to continue. Purchases of merchandise are made a month before needed and are paid 60 percent in the month of purchase and 40 percent the following month. Wages, estimated at 10 percent of sales, are paid in the month of sale while operating expenses, 15 percent of sales, are paid in the month of the sale. There is a $63,000 balance in Accounts Payable on March 31, all of which is paid in April.

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The Answer of Required:Prepare a schedule of cash disbursements for April, May, and June.
Commodore Company, a retailer, has developed the sales budget for the next six months of its rolling budget. Gross profit has averaged 35 percent of sales over the last 3 months and this trend is expected to continue. Purchases of merchandise are made a month before needed and are paid 60 percent in the month of purchase and 40 percent the following month. Wages, estimated at 10 percent of sales, are paid in the month of sale while operating expenses, 15 percent of sales, are paid in the month of the sale. There is a $63,000 balance in Accounts Payable on March 31, all of which is paid in April.

Required:Prepare a Schedule of Cash Disbursements for April, May, and June