LESSON # 41

Corrigendum
Dear Students,

Please note that an additional piece of information is missing in handouts and video lecture regarding the
calculations of Cash Disbursements. The said rectification has been made in lesson PPTs.

 Payables period is 45 days, so half of the purchases will be paid for each quarter and the remaining
will be paid the following quarter
 Beginning payables = $125
 An additional payment of $125 will be made to a vendor in second quarter, which is related to some
previous transaction.

Cash Disbursement

Q1 Q2 Q3 Q4
Payment of accounts $275 $438 $362 $338
Wages, taxes and other expenses 125 150 163 200
Capital expenditures - 200 - -
(Interest and dividend payments) 50 50 50 50
Total cash disbursements $450 $838 $575 $588