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Natasha_Volkova [10]
3 years ago
6

Preparing an Accounts Payable Schedule Wight Inc. purchases raw materials on account for use in production. The direct materials

purchases budget shows the following expected purchases on account: April $374,000 May 412,000 June 415,900 Wight typically pays 25% on account in the month of billing and 75% the next month.
Required:
1. How much cash is required for payments on account in May?
2. How much cash is expected for payments on account in June?
Business
1 answer:
anyanavicka [17]3 years ago
5 0

Answer:

Wight Inc.

1. The cash required for payments on accounts in May

= $383,500

2. The cash required for payments on accounts is:

= $412,975

Explanation:

a) Data and Calculations:

                                                             April             May            June

Expected purchases on account   $374,000    $412,000    $415,900

Cash Payments:

Month of billing (25%)                     $93,500    $103,000     $103,975

Next month (75%)                                               280,500      309,000

Cash required for payments on accounts      $383,500     $412,975

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