Bavarian Brew's schedule of projected cash disbursement
The company's purchases are 75% of its sales. Of those purchases 15% are paid in cash, 50% are paid in the following month and the remainder in the month after that. The company's wages and salaries equal 15% of sales each month plus $50. Taxes of $125 are due in April. The company is going to purchase new machinery worth $1000 in March and pay 50% right away and the rest in April. In addition, the company will pay a $175 dividend in February.
-What are the cash disbursements for February? Assume Bavarian Brew had sales of $490 in December.
A) $598.25
B) $773.25
C) $548.25
D) $419.65
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Q1: Bavarian Brew's schedule of projected cash disbursement
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