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Example of an Expected Cash Disbursement Budget

Learn more from an expected cash disbursement budget example.

Expected Cash Disbursement Budget for Materials

  • Royal pays $0.40 per pound for its materials.
  • One-half of a month’s purchases is paid for in the month of purchase; the other half is paid in the following month.
  • The March 31 accounts payable balance is $12,000.


Accounts payable: April $12k, May 0, June 0, Q $12k. April purchases: 50% x 56k: April 28k, May 0, June 0, Q 28k. 50% x 56k: April 0 May 28k, June 0, Q 28k. May purchases 50% x 88.6: April 0, May 44.3k, June 0 Q 44.3k. 50% x 88.6: April 0, May 0, June 44.3k, Q 44.3k. Junes purchases: April 0, May 0, June 28.4k, Q 28.4k. Total cash disbursements: April $40k, May $72.3k, June $72.7k, Q $185k

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