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Nataly_w [17]
2 years ago
11

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manu

facturing costs* $156,400 $198,500 $201,200 Insurance expense** 1,190 1,190 1,190 Depreciation expense 2,010 2,010 2,010 Property tax expense*** 460 460 460 * Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. **Insurance expense is $1,190 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October). ***Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are
Business
1 answer:
faust18 [17]2 years ago
6 0

Answer:

$187,975

Explanation:

Calculation to determine The cash payments expected for Finch Company in the month of April

Cash Payment= 3/4 *$198,500 (May's manufacturing cost)+1/4 *$156,400 (April's manufacturing cost received in May)

Cash Payment=$148,875+$39,100

Cash Payment=$187,975

The The cash payments expected for Finch Company in the month of April are $187,975

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