*Exercise 5-25 Maria Bockman, Bates & Hill Fabricators\' accounts payable manage

Question

*Exercise 5-25 Maria Bockman, Bates & Hill Fabricators' accounts payable manager, has just received the company's direct materials purchases budget for the first quarter January February March Quarter Budgeted purchase cost $25,812 $48,556 $42,780 $117,148 The company makes all of its direct materials purchases on account. Maria's recent review of the company's payment history revealed that the company pays for 50% of its direct materials purchases in the month of purchase and 50% in the month following purchase. The company expects to have an accounts payable balance of $16,020 on January 1, and this amount represents the remaining payables from December's direct materials purchases Prepare Swifty & Hill's cash payments budget for the coming year. (Round answers to 0 decimal places, e.g. 5,275. Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.) Cash Payments Budget January February March Total Cash Payments December A/P January purchases February purchases March purchases Total Prepare Swifty & Hill's cash payments budget for the first quarter Accounts Payable balance $

Explanation / Answer

Payment cash payment budget :

Account payable balance = 42780*50% = 21390

January February March Total cash payments December A/P 16020 16020 January purchases 12906 12906 25812 February purchases 24278 24278 48556 March purchases 21390 21390 Total 28926 37184 45668 111778

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.