Question

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		$21,223		$41,603		$36,702		$99,528

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 $14,940 on January 1, and this amount represents the remaining payables from December’s direct materials purchases.

Prepare Bramble & 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		$Enter a dollar amount Enter a dollar amount	$Enter a dollar amount Enter a dollar amount	$Enter a dollar amount Enter a dollar amount	$Enter a dollar amount Enter a dollar amount
	January purchases		Enter a dollar amountEnter a dollar amount	Enter a dollar amountEnter a dollar amount	Enter a dollar amountEnter a dollar amount	Enter a dollar amountEnter a dollar amount
	February purchases		Enter a dollar amountEnter a dollar amount	Enter a dollar amountEnter a dollar amount	Enter a dollar amountEnter a dollar amount	Enter a dollar amountEnter a dollar amount
	March purchases		Enter a dollar amountEnter a dollar amount	Enter a dollar amountEnter a dollar amount	Enter a dollar amountEnter a dollar amount	Enter a dollar amountEnter a dollar amount
	Total		$Enter a total amountEnter a total amount	$Enter a total amountEnter a total amount	$Enter a total amountEnter a total amount	$Enter a total amountEnter a total amount

Prepare Bramble & Hill’s cash payments budget for the first quarter.

Accounts Payable balance

$Enter Accounts Payable balance in dollars Enter Accounts Payable balance in dollars

Answer 1

Please comment for any explanation,

Thanks,