Ahmed Company purchases all merchandise on credit. It recently budgeted the month-end accounts payable balances below. Cash payments on accounts payable during each month are expected to be June, $1,490,000; July, $1,425,000; and August, $1,495,000. Hint: Use the relation (Beginning Accounts Payable + Purchases on Credit - Payments on Accounts Payable = Ending Accounts Payable) to solve for budgeted purchases. May 31 June 30 July 31 $ 150,000 $ 200,000 $ 235,000 Accounts payable Computing budgeted merchandise purchases from accounts payable Budgeted amounts: July Ending accounts payable Add: Cash paid on accounts payable Total accounts payable Less: Beginning accounts payable Budgeted merchandise purchases $ June 0 August 31 $ 195,000 0 $ 0 0 $ August 0 0
Ahmed Company purchases all merchandise on credit. It recently budgeted the month-end accounts payable balances below. Cash payments on accounts payable during each month are expected to be June, $1,490,000; July, $1,425,000; and August, $1,495,000. Hint: Use the relation (Beginning Accounts Payable + Purchases on Credit - Payments on Accounts Payable = Ending Accounts Payable) to solve for budgeted purchases. May 31 June 30 July 31 $ 150,000 $ 200,000 $ 235,000 Accounts payable Computing budgeted merchandise purchases from accounts payable Budgeted amounts: July Ending accounts payable Add: Cash paid on accounts payable Total accounts payable Less: Beginning accounts payable Budgeted merchandise purchases $ June 0 August 31 $ 195,000 0 $ 0 0 $ August 0 0
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Ahmed Company purchases all merchandise on credit. It recently budgeted the month-end accounts payable balances below.
Cash payments on accounts payable during each month are expected to be June, $1,490,000; July, $1,425,000; and August,
$1,495,000. Hint: Use the relation (Beginning Accounts Payable + Purchases on Credit - Payments on Accounts Payable= Ending
Accounts Payable) to solve for budgeted purchases.
June 30
May 31
July 31 August 31
Accounts payable $ 150,000 $200,000 $235,000 $ 195,000
Computing budgeted merchandise purchases from accounts payable
Budgeted amounts:
June
July
Ending accounts payable
Add: Cash paid on accounts payable
Total accounts payable
Less: Beginning accounts payable
Budgeted merchandise purchases
$
0
0 $
0
$
August
0
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