Is Working on their budgets for the year 2021. The table below has a few of their expectations for 2021. Accounts Payable on April 1 Inventory purchases in March Inventory purchases in April Inventory purchases in May Inventory purchases in June Inventory purchases in July $4,475 $4,972 $6,201 $6,630 $7,857 $6,983 Historically, this company's payment pattern for inventory purchases has been 100% on account which then get paid 10% in the month of purchase and the remainder one month following the purchase. The Accounts Payable on April 1 is the result of inventory purchases in March 2020 and thus is expected to be paid according to the pattern described above..
Is Working on their budgets for the year 2021. The table below has a few of their expectations for 2021. Accounts Payable on April 1 Inventory purchases in March Inventory purchases in April Inventory purchases in May Inventory purchases in June Inventory purchases in July $4,475 $4,972 $6,201 $6,630 $7,857 $6,983 Historically, this company's payment pattern for inventory purchases has been 100% on account which then get paid 10% in the month of purchase and the remainder one month following the purchase. The Accounts Payable on April 1 is the result of inventory purchases in March 2020 and thus is expected to be paid according to the pattern described above..
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
2 how much should this company expect in accounts payable at the end of the 2nd quarter
Transcribed Image Text:A company is working on their budgets for the year 2021. The table below has
a few of their expectations for 2021.
Accounts Payable on April 1
Inventory purchases in March
Inventory purchases in April
Inventory purchases in May
Inventory purchases in June
Inventory purchases in July
$4,475
$4,972
$6,201
$6,630
$7,857
$6,983
Historically, this company's payment pattern for inventory purchases has been
100% on account which then get paid 10% in the month of purchase and the
remainder one month following the purchase.
The Accounts Payable on April 1 is the result of inventory purchases in March
2020 and thus is expected to be paid according to the pattern described
above.
How much should this company expect in Accounts Payable at the end of the
2nd quarter? (round to the nearest whole dollar/input code 0)
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