Question

Zisk Co. purchases raw materials on account. Budgeted purchase amounts are April, $99,000; May, $129,000; and June. $139,000. Payments are made as follows: 70% in the month of purchase and 30% in the month after purchase. The March 31 balance of accounts payable is $41,000. Prepare a schedule of budgeted cash payments for April, May, and June. April May June 70% Current month purchases Ending accounts payable Total purchases 30% $ 0 $ 0 $ 0 Zisk Co. Schedule of Cash Payments For April, May, and June April May June Cash payments for: Current month purchases Prior month purchases Budgeted cash payments for materials

Answer 1

Correct Answer:

		April	May	June
Current month purchases	70%	$        69,300	$         90,300	$          97,300
Ending accounts payable	30%	$        29,700	$          38,700	$          41,700
Total Purchases		$        99,000	$        129,000	$        139,000

Zisk Co.
Schedule of cash payments
For April, May, and June
		April	May	June
Cash payments for
Current month purchases		$        69,300	$          90,300	$          97,300
Prior month purchases		$        41,000	$          29,700	$          38,700
Budgeted cash payments for materials		$     110,300	$        120,000	$        136,000

End of Answer.

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