Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs* $158,600 $195,800 $206,800 Insurance expense** 1,030 1,030 1,030 Depreciation expense 2,070 2,070 2,070 Property tax expense*** 430 430 430 * 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. The cash payments expected for Finch Company in the month of April are
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs* $158,600 $195,800 $206,800 Insurance expense** 1,030 1,030 1,030 Depreciation expense 2,070 2,070 2,070 Property tax expense*** 430 430 430 * 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. The cash payments expected for Finch Company in the month of April are
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:
| April | May | June | |
| $158,600 | $195,800 | $206,800 | |
| Insurance expense** | 1,030 | 1,030 | 1,030 |
| 2,070 | 2,070 | 2,070 | |
| Property tax expense*** | 430 | 430 | 430 |
* 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.
The cash payments expected for Finch Company in the month of April are
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