PLEASE ANSWER ASAP. THANK YOU! Schedule of Cash Payments for a Service Company S

Question

PLEASE ANSWER ASAP. THANK YOU!

Schedule of Cash Payments for a Service Company SafeMark Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March April May $119,600 111,200 101,200 Depreciation, insurance, and property taxes represent $25,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 65% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month Prepare a schedule indicating cash payments for selling and administrative expenses for March, April, and May SafeMark Financial Inc. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31 March April May March expenses ,7,740) X Paid in March 41,860 Paid in April April expenses: Paid in April Paid in May May expenses: Paid in May 72,280 x 38,920 X 65,780)X 77,740 X 114,140 X 104,700 | ? Total cash payments

Explanation / Answer

SafeMark Financial Inc:

Jordan Company:

a. Product QQ : 4,970 units.

Product ZZ : 2,130 units

At break-even, Total Contribution Margin = Total Fixed Costs.

Let the overall break-even quantity be Q.

Therefore $ 140 x 0.70Q + $ 60 x 0.30Q = $ 823,600.

or 116 Q = $ 823,600.

or Q = $ 823,600 / 116 = 7,100 units.

Product QQ = 7,100 units x 70 % = 4,970 units

Product ZZ = 7,100 units x 30% = 2,130 units

SafeMark Financial Inc Schedule of Cash Payments for Selling and Administrative Expenses March April May March Expenses Paid in March 61,490 Paid in April 33,110 April Expenses Paid in April 56,030 Paid in May 30,170 May Expenses Paid in May 49,530 Total Cash Payments $ 61,490 $ 89,140 $ 79,700

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