18 My Subscriptions Questions incorrect Seth Kore Mark 0.00 out of. Hal question Cash Disbursements Assume that Ringwood Manufacturing manages its cash flow from its home office. Ringwood 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 Guidelines Purchases Pay half in current and half in following month Payroll Pay 70 percent in current month and 30 percent in following month Loan Payments Pay total amount due each month Predicted activity for selected months follow Category May June July August Purchases 60,000 $74,000 $ 79,000 $85.000 Payroll 130,000 140,000 150.000 150.000 Loan payments 40,000 40,000 45.000 45.000 Prepare activity for selected months follow. Catogory May June July August Purchases $50,000 574.000 $79.000 585,000 Payroll 130.000 140.000 150,000 130,000 Loan payments 40.000 40,000 45,000 45,000 Catogory Purchases Payroll Loan payments May June July August $60,000 $74,000 $79,000 $85,000 130,000 140,000 150,000 130,000 40,000 40,000 45,000 45,000 Prepare a schedule showing cash disbursement by account for July and August. Ringwood Manufacturing Schedule of Cash Disbursements For the Months of July and August July August Accounts payable $ 105,000 x Payroll 39,500 x OX Loan payments 0 X Total $ 45,000 * $ 45,000 % 0* Check Incorrect