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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5PB: Wellington, Inc., reports the following contribution margin income statement for the month of May....

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

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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