Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June $158,900 $194,300 $208,700 Manufacturing costs* Insurance expense** Depreciation expense Property tax expense*** *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 $990 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 a. $122,145 b. $158,900 c. $140,523 d. $119,175 990 1,940 460 990 1,940 460 990 1,940 460

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June $158,900 $194,300 $208,700 Manufacturing costs* Insurance expense Depreciation expense Property tax expense* 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 $990 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 a. $122,145 b. $158,900 c. $140,523 d. $119,175 990 1,940 460 990 1,940 460 990 1,940 460

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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