6.9    Eastmark Stores wants to estimate cash disbursements for cash budgeting purpose three months of 19B from the data given below.

(a)     Cost of merchandise sold,  estimated:

 

19A, Decem ber	$225,000
19B, January	250,000
February	280,000
March	210,000

 

Thirty-five percent of the cost of merchandise is to be paid for in the month 65 percent  of the cost is to be paid for in the month following the month    of

( b )        Wages  for  each  month   are  estimated   as follows:

 

19A, December	$23,000
19B, January	26,000
February	31,000
March	25,000

 

Wages are all paid  as incurred.

(c)        Utilities  are to be paid  every  other month  at the  amount  of  $320 per  mon payment  is to be made in February.

(d )     Six months' rent and insurance amounting to a total of $9,700 is to be paid

( e)        An  income  tax  of  $12,500  is  to  be  paid  in March.

(!)            Depreciation on office equipment has been estimated at $7,500 for the year

(g)       New equipment costing $50,000 is to be acquired in February  with  a   down

$4,000 required  at date of purchase.

(h)     Other operating expenses have been  estimated  at $2,250 per month,  which each month.

Prepare  a cash disbursement budget  for each of the first three months of    19B.