Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May $156,400 $196,500 $205,500 1,030 2,040 Manufacturing costs* Insurance expense** Depreciation expense Property tax expense*** 1,030 2,040 450 450 June 1,030 2,040 450 *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 $1,030 a month; however, the insurance is paid four times yearly in the first month of the quarter (i.e., January, April, July, and Octob ***Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are O a. $117,300 O b. $156,400 O c. $120,390 O d. $138.395

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May $156,400 $196,500 $205,500 1,030 2,040 Manufacturing costs* Insurance expense Depreciation expense Property tax expense* 1,030 2,040 450 450 June 1,030 2,040 450 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 $1,030 a month; however, the insurance is paid four times yearly in the first month of the quarter (i.e., January, April, July, and Octob Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are O a. $117,300 O b. $156,400 O c. $120,390 O d. $138.395

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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Question

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Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:
April
May
$156,400 $196,500 $205,500
1,030
2,040
450
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 $1,030 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.
1,030
June
2,040
450
1,030
2,040
450
The cash payments expected for Finch Company in the month of April are
O a. $117,300
O b. $156,400
O c. $120,390
Od. $138,395

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