A 220. MonthAprilMayJunePurchases$18,000$25,000$32,000Cash is collected from customers in the following manner:Sales$45,000$50,000$55,000Month of sale 25% -Month following the sale 70%-Uncollectible 5%20% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.Labor costs are 35% of sales. Other operating costs are $16,000 per month (including $4,000 of depreciation). Both of these are paid in the month incu$6,000. A minimum cash balance of $3,000 is required at the end of the month. Money can be borrowed in multiples of $1,000.How much cash will be paid out to suppliers in June?O$20,200$42,000$22,600O $26,400

Suppliers are paid later on because they provide credit on purchases that gives short term credit to…

$18,000 $25,000 $32,000 is collected from customers in the following manner: Month of sale 25% - Month following the sale 70% -Uncollectible 5% f purchases are paid for in cash in the month of purchase, and the balance is paid the following month. costs are 35% of sales. Other operating costs are $16,000 per month (including $4,000 of depreciation). Both of these are paid in the O. A minimum cash balance of $3,000 is required at the end of the month. Money can be borrowed in multiples of $1,000. much cash will be paid out to suppliers in June? 20,200 2,000 2,600 6,400 $45,000 $50,000 $55,000

$18,000 $25,000 $32,000 is collected from customers in the following manner: Month of sale 25% - Month following the sale 70% -Uncollectible 5% f purchases are paid for in cash in the month of purchase, and the balance is paid the following month. costs are 35% of sales. Other operating costs are $16,000 per month (including $4,000 of depreciation). Both of these are paid in the O. A minimum cash balance of $3,000 is required at the end of the month. Money can be borrowed in multiples of $1,000. much cash will be paid out to suppliers in June? 20,200 2,000 2,600 6,400 $45,000 $50,000 $55,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 12EB: Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the...

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Desiccate purchases direct materials each month. Its payment history shows that 70% is paid in the month of purchase with the remaining balance pad the month after purchase. Prepare a cash payment schedule for March if in January through March, it purchased $35,000, $37,000, and $39,000, respectively.
A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000
Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment schedule for January using this data: in December through February, it purchased $22,000, $25,000, and $23,000 respectively.
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