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Finance part b only : Prepare a schedule of cash payments on accounts payable for each month and in total for the first quarter. Note- read carefully.  each month and the first quarter

Finance part b only : Prepare a schedule of cash payments on accounts payable for each month and in total for the first quarter. Note- read carefully.  each month and the first quarter

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 19E: Schedule of cash payments for service company Horizon Financial Inc. was organized on February 28....
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Finance

part b only

: Prepare a schedule of cash payments on accounts payable for each month and in total for the first quarter.

Note- read carefully.  each month and the first quarter

3. A. Cash Collection Budgeted sales for the third quarter of the year for Brown Company are as follows: Cash Collection June July August September Budgeted Sales $350,000 $300,000 375,000 450,000 Total Cash Collected July June July August September The company normally collects 30 percent in the month of sale and 65 percent in the month following the sale. Five percent of all sales are uncollectible and are written off in the following month. B. Cash Payment Schedule for Raw Material Purchases Budgeted Purchases july August The balance in accounts receivable at July 1 was $245,000, which represents 70 percent of June sales. Required: Determine cash collection for July, August, & Sept. $168,000 354,000 472,000 September CASH PAYMENT aug Sept The company normally pays for 70% of its purchases in the month of purchase. The remaining 30% is paid in the following month. Instructions: Prepare a schedule of cash payments on accounts payable for each month and in total for the first quarter.
Transcribed Image Text:3. A. Cash Collection Budgeted sales for the third quarter of the year for Brown Company are as follows: Cash Collection June July August September Budgeted Sales $350,000 $300,000 375,000 450,000 Total Cash Collected July June July August September The company normally collects 30 percent in the month of sale and 65 percent in the month following the sale. Five percent of all sales are uncollectible and are written off in the following month. B. Cash Payment Schedule for Raw Material Purchases Budgeted Purchases july August The balance in accounts receivable at July 1 was $245,000, which represents 70 percent of June sales. Required: Determine cash collection for July, August, & Sept. $168,000 354,000 472,000 September CASH PAYMENT aug Sept The company normally pays for 70% of its purchases in the month of purchase. The remaining 30% is paid in the following month. Instructions: Prepare a schedule of cash payments on accounts payable for each month and in total for the first quarter.
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