Hello,
How do you figure out what to enter in the line "payments for purchases" on the cash payments schedule? Is there a formula?
To figure out what to enter in the line "payments for purchases" on the cash payments schedule, first you have to separate the cash purchase and the credit purchase for a particular month. Assume that 30% of purchases of that particular month are paid in cash at the time of the purchase or during the month; therefore the company is expected to make a payment of 30% of purchases in cash during the month.
Payments for purchases are the first item that comes in the cash disbursements budget. Suppose the company plans to pay 30% of its purchases during the month for the items it acquires, then its payments for purchases on the cash payments schedule will be 30% of total purchases of that month.
Cash to be paid for month’s purchases (payments for purchases on the cash payments) = 30% * total purchases during the month
Hello, How do you figure out what to enter in the line "payments for purchases" on...
Hello, How do you figure out payments for purchases on the cash payments schedule?
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