Question

Zisk Co. purchases raw materials on account. Budgeted purchase amounts are April, $80,000; May, $110,000; and June, $120,000. 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 $22,000 Prepare a schedule of budgeted cash payments for April, May, and June.

April May June
Current month purchases 70%
Ending accounts payable 30 %
Total purchases
ZISK CO.
Schedule of Cash Payments For April, May, and June
Аpril May June
Cash payments for
Current month purchases
Prior month purchases
Budgeted cash payments for materials

Answer 1

Results are below.

Step-by-step explanation:

Giving the following information:

Budgeted purchase:

April= $80,000

May= $110,000

June= $120,000.

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 $22,000

April:

Purchase from April= 80,000*0.7= 56,000

From previous month= 22,000

Total cash= 78,000

May:

Purchase from May= 110,000*0.7= 77,000

From previous month= 80,000*0.3= 24,000

Total cash= 101,000

June:

Purchase from June= 120,000*0.7= 84,000

From previous month= 110,000*0.3= 33,000

Total cash= 117,000