Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs* $159,200 $195,700 $219,100 Insurance expense"" 870 870 870 Depreciation expense 2,100 2,100 2,100 Property tax expense"* 580 580 580 "Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. e *Insurance expense is $870 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 May are Oa. $146,775 Ob. $39,800 Oc. $186,575 Od. $226,375
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs* $159,200 $195,700 $219,100 Insurance expense"" 870 870 870 Depreciation expense 2,100 2,100 2,100 Property tax expense"* 580 580 580 "Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. e *Insurance expense is $870 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 May are Oa. $146,775 Ob. $39,800 Oc. $186,575 Od. $226,375
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:
April
Мay
June
Manufacturing costs*
$159,200 $195,700 $219,100
Insurance expense**
870
870
870
Depreciation expense
2,100
2,100
2,100
Property tax expense***
580
580
580
*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 $870 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 May are
Oa. $146,775
Ob. $39,800
Oc. $186,575
Od. $226,375
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