The Prince Albert Corporation has forecast the following sales for the first seven months of the year.

Monthly material purchases are set equal to 30 percent of forecasted sales for the next month. Of the total material costs, 40 percent are paid in the month of purchase and 60 percent are paid in the following month. Labour costs will run $4,000 per month, and fixed overhead is $2 ,000 per month. Interest payments on the debt will be $3,000 for both March and June. Finally, the Prince Albert salespeople will receive a 1.5 percent commission on total sales for the first six months of the year, to be paid on June 30.
Prepare a monthly summary of cash payments for the six months from January through June.

Transcribed Image Text:

March $10,000 $14,000 $10,000 $18,000 January May July April 20,000 16,000 February 12,000 June