**(c) Calculate the accounts payable payments for the month of September.****Accounts Payable (Material Payments) ______, Current Year**This section contains a table with two columns and five rows. Each cell within the table is empty, providing a structure meant for inputting data related to accounts payable for material payments. The table header suggests that the data pertains to the current year, specifically for the month of September.---**(d) Calculate the accounts payable balance on the Balance Sheet for the month of September.****Accounts Payable Balance ______, Current Year**This section also includes a table with two columns and five rows. The table is empty and structured to accommodate entries relating to the accounts payable balance. This information corresponds to the balance sheet details for the month of September in the current year.---These tables are designed to assist in organizing data for calculating accounts payable payments and balances. They provide a framework for comparing figures essential for financial accounting purposes. **Problem 1**As treasurer of a manufacturing company, you are preparing a cash budget for September of the next fiscal year. The information for September you have at your disposal to complete this task is as follows:(a) **Next year's sales forecast follows:**- July: $350,000- August: $240,000- September: $300,000- October: $360,000(b) The sales price is $60.(c) Each month, 20% of the sales are for cash and 80% are on credit.(d) **The AR collection pattern for credit sales is:**- 20% is received in 0-30 days- 50% is received in 31-60 days- 30% is received in 60-90 days(e) The cash in bank at the beginning of September is $15,400.(f) **The per unit production cost data is:**- Direct material: $20- Direct labor: 1 direct labor hour per unit; $15 direct labor rate(g) The company monthly beginning FG inventory policy is to maintain a minimum of 25% of the current month's sales.(h) **The AP pattern for credit purchases is:**- 30% is paid in 0-30 days- 70% is paid in 31-60 days(i) There is an income tax payment of $35,000 at the end of each quarter.(j) The company accrues $30,000 for dividend payment made on the month following the end of each quarter.(k) Recurring monthly overhead expenses are $35,000, composed of the following:- **Cost Behavior:** - Fixed cost: $20,000 - Variable cost: $15,000 - Depreciation expense included in overhead: $5,000(l) Recurring monthly SG&A is $44,000 including $4,000 depreciation.(m) The company has a policy of maintaining a minimum cash balance of $15,000. If necessary, the company can borrow in multiples of $1,000 at a simple interest rate of 10% per year. All borrowings occur at the beginning of the month in which the amount is borrowed while all repayments occur at the end of a month in which there is an excess of cash above the minimum balance. Interest is paid on the amount repaid at

Accounts payable: It is the current liability to an organization. It is the amount payable to the…

Problem 1 As treasurer of a manufacturing company, you are preparing a cash budget for September of the next fiscal year. The information for September you have at your disposal to complete this task is as follows: Next year's sales forecast follows: July August September October (a) $350,000 $240,000 $300,000 $360,000 (b) The sales price is $60. (c) Each month, 20% of the sales are for cash and 80% are on credit. (d) The AR collection pattern for credit sales is: 20% is received in 0-30 days 50% is received in 31-60 days 30% is received in 60-90 days (e) The cash in bank at the beginning of September is $15,400 The per unit production cost data is: Direct material (f) $20 Direct labor 1 direct labor hour per unit; $15 direct labor rate The company monthly beginning FG inventory policy is to maintain a minimum of 25% of the current month's sales. (g) (h) The AP pattern for credit purchases is: 30% is paid in 0-30 days 70% is paid in 31-60 days (i) There is a income tax payment of $35,000 at the end of each quarter G) The company accrues $30,000 for dividend payment made on the month following the end of each quarter. (k) Recurring monthly overhead expenses are $35,000 is composed of the following: Cost Behavior: Fixed cost: $20,000 Variable cost: $15,000 Depreciation expense included in overhead: $5,000 (1) Recurring monthly SG&A is $44,000 including $4,000 depreciation. The company has a policy of maintaining a minimum cash balance of $15,000. If necessary, the company can borrow in multiples of S$1,000 at a simple interest rate of 10% per year. All borrowings occur at the beginning of the month in which the amount is borrowed while all repayments occur at the end of a month in which there is an excess of cash above the minimum balance. Interest is paid on the amount repaid at the time of герayment. (m) The company borrowed $20,000 on July 1 of following fiscal year to meet their minimum cash requirements. (n)

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q