Preparing an Accounts Payable Schedule Wight Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: April $375,000 May 410,800 June 415,800 Wight typically pays 30% on account in the month of billing and 70% the next month. Required: 1. How much cash is required for payments on account in May? $fill in the blank 1 2. How much cash is expected for payments on account in June? $fill in the blank 2
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.
Preparing an Accounts Payable Schedule
Wight Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account:
| April | $375,000 |
| May | 410,800 |
| June | 415,800 |
Wight typically pays 30% on account in the month of billing and 70% the next month.
Required:
1. How much cash is required for payments on account in May?
$fill in the blank 1
2. How much cash is expected for payments on account in June?
$fill in the blank 2
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