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Question: 07 Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs (1) $1,55,100 $1,99,600 $2,14,700 Insurance expense (2) 1,120 1,120 1,120 Depreciation expense 2,090 2,090 2,090 Property tax expense (3) 430 430 430 (1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred and one-fourth is paid for in the following month. (2) Insurance expense is $1,120 a month; however, the insurance is paid four times yearly, in the first month of the quarter (i.e., January, April, July, and October). (3) Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are: a. $155,100 b. $116,325 c. $137,393 d. $119,685

Question: 07 Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs (1) $1,55,100 $1,99,600 $2,14,700 Insurance expense (2) 1,120 1,120 1,120 Depreciation expense 2,090 2,090 2,090 Property tax expense (3) 430 430 430 (1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred and one-fourth is paid for in the following month. (2) Insurance expense is $1,120 a month; however, the insurance is paid four times yearly, in the first month of the quarter (i.e., January, April, July, and October). (3) Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are: a. $155,100 b. $116,325 c. $137,393 d. $119,685

FINANCIAL ACCOUNTING
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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Question: 07 Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs (1) $1,55,100 $1,99,600 $2,14,700 Insurance expense (2) 1,120 1,120 1,120 Depreciation expense 2,090 2,090 2,090 Property tax expense (3) 430 430 430 (1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred and one-fourth is paid for in the following month. (2) Insurance expense is $1,120 a month; however, the insurance is paid four times yearly, in the first month of the quarter (i.e., January, April, July, and October). (3) Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are: a. $155,100 b. $116,325 c. $137,393 d. $119,685
Transcribed Image Text:Question: 07 Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs (1) $1,55,100 $1,99,600 $2,14,700 Insurance expense (2) 1,120 1,120 1,120 Depreciation expense 2,090 2,090 2,090 Property tax expense (3) 430 430 430 (1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred and one-fourth is paid for in the following month. (2) Insurance expense is $1,120 a month; however, the insurance is paid four times yearly, in the first month of the quarter (i.e., January, April, July, and October). (3) Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are: a. $155,100 b. $116,325 c. $137,393 d. $119,685
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