Prepare a schedule of cash disbursements for purchases

Question

Olson Company has the following data:

Month         Budgeted Purchases

January                            $225,000

February                            190,000

March                                 200,000

April                                   220,000

May                                    150,000

Purchases are paid as follows:

10% in the month of purchase

80% one month after purchase

10% two months after purchase

Prepare a schedule of cash disbursements for purchases for March, April and May.