Question 6 12 points Question 2 (12 marks) M&H; Ltd. budgeted the following info

Question

Question 6 12 points Question 2 (12 marks) M&H; Ltd. budgeted the following information for 2020 June Ju ugust udaete udgeted purchases Cost of goods sold is 50% of sales. Accounts payable is used only for inventory acquisitions. M&H; purchases and pays for merchandise 50% in the month of acquisition and 50% in the following month Selling and administrative expenses are budgeted at $30.000 for May and are expected to increase 2% per month. They are paid during the month of acquisition. In addition, budgeted Depreciation is $5,000 per month M&H; pays $700 per month for its 5% note payable and interest. .New equipment costing $12,000 ll be purchased in June and an additional equipment purchase for $3,000 will be made in July. Depreciation on the new equipment will start in the month of purchase Income taxes are $5,000 for July and are paid in the month incurred. Fill in the blanks below using the information above A. What is the amount of cash paid for July purchases? B. What is the amount of cash paid for June purchases? S C. What is the amount of cash paid for July selling and admin costs? D. What is the amount of cash paid in July for the note, including interest? S E. What is the amount of cash paid in July for equipment? F. What is the amount of cash paid in July for income taxes?

Explanation / Answer

A. What is amount of Cash paid For July purchase ($45000*50%) $22500 B. What is amount of Cash paid For June purchase ($60000*50%) $30000 C. What is amount of Cash paid for July Selling & Adminstration Expense ($30600*102%) $31212 D. What is amount of Cash paid in July For note including Interest $700 E. What is amount of Cash paid in July For Equipment $ 3000 F. What is amount of Cash paid in July For Income Tax $ 5000

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

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