Michael Jones is one of Texas's premiere party planners. She purchases a variety of supplies, such as plastic tableware, stemware, and decorations, throughout the year. Michael has prepared the following purchases budget for the coming year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted purchases $ 280,000 $ 480,000 $ 495,000 $ 575,000 Historically, Michael has paid for 40% of her purchases in the quarter of purchase and 60% in the quarter following purchase. On December 31 of this year Michael had a $ 250,000 accounts payable balance. Prepare Michael's cash payments budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual A/P from last year $ 250,000 $ enter a dollar amount 0 0 $ enter a dollar amount 1st quarter purchases enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount 2nd quarter purchases enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount 3rd quarter purchases enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount 4th quarter purchases enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount Total $ enter a total amount $ enter a total amount $ enter a total amount $ enter a total amount $ enter a total amount Calculate the accounts payable balance at the end of 4th Quarter. Accounts Payable balance at the end of 4th Quarter $ enter the accounts payable balance at the end of 4th quarter in dollars

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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Michael Jones is one of Texas's premiere party planners. She purchases a variety of supplies, such as plastic tableware, stemware, and decorations, throughout the year. Michael has prepared the following purchases budget for the coming year:

		1st Quarter		2nd Quarter		3rd Quarter		4th Quarter
Budgeted purchases		$ 280,000		$ 480,000		$ 495,000		$ 575,000

Historically, Michael has paid for 40% of her purchases in the quarter of purchase and 60% in the quarter following purchase. On December 31 of this year Michael had a $ 250,000 accounts payable balance.

Prepare Michael's cash payments budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.)

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Annual
A/P from last year	$ 250,000	$ enter a dollar amount	0	0	$ enter a dollar amount

1st quarter purchases	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
2nd quarter purchases	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
3rd quarter purchases	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
4th quarter purchases	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount
Total	$ enter a total amount	$ enter a total amount	$ enter a total amount	$ enter a total amount	$ enter a total amount

Calculate the accounts payable balance at the end of 4th Quarter.

Accounts Payable balance at the end of 4th Quarter

$ enter the accounts payable balance at the end of 4th quarter in dollars

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

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