Question

Original Built, LLC has budgeted the following for 2023: Purchases $420,000 Beginning Accounts Payable $95,000 Ending Accounts Payable $92,000 Calculate the budgeted cash payments for Original Built, LLC.

Answer 1

To calculate Original Built, LLC's budgeted cash payments, you add the purchases to the beginning accounts payable and then subtract the ending accounts payable. The company has budgeted $423,000 in cash payments for 2023.

Step-by-step explanation:

The question pertains to calculating budgeted cash payments for a company named Original Built, LLC. To do this, we need to consider the purchases, beginning accounts payable, and ending accounts payable as given in the provided data.

Step 1: We start by identifying the total amount of purchases and accounts payable data:

• Purchases: $420,000
• Beginning Accounts Payable: $95,000
• Ending Accounts Payable: $92,000

Step 2: To calculate the cash payments, we'll use the following formula:

Total Purchases + Beginning Accounts Payable – Ending Accounts Payable = Cash Payments

Using the provided figures:

$420,000 (Purchases) + $95,000 (Beginning Accounts Payable) – $92,000 (Ending Accounts Payable) = $423,000 Cash Payments

This means Original Built, LLC has budgeted $423,000 in cash payments for the year 2023.