Schedule of cash payments for a service company Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March April. May $154,100 143,300 130,400 Depreciation, insurance, and property taxes represent $33,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 66% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance. to be paid in the following month. Prepare a schedule of cash payments for selling and administrative expenses for March, April, and May. Horizon Financial Inc. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31 March April March expenses: Paid in March Paid in April April expenses: Paid in April Paid in May May expenses: May 70 0
Schedule of cash payments for a service company Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March April. May $154,100 143,300 130,400 Depreciation, insurance, and property taxes represent $33,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 66% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance. to be paid in the following month. Prepare a schedule of cash payments for selling and administrative expenses for March, April, and May. Horizon Financial Inc. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31 March April March expenses: Paid in March Paid in April April expenses: Paid in April Paid in May May expenses: May 70 0
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
5
Transcribed Image Text:**Educational Content on Cash Payments Schedule**
To understand cash payment scheduling, consider this practical example from Horizon Financial Inc. The following details illustrate how expenses are planned for the months of March, April, and May.
### Monthly Expenses Overview
- **March**: $154,100
- **April**: $143,300
- **May**: $130,400
*Note*: A fixed amount of $33,000 covers depreciation, insurance, and property taxes each month. Annual property taxes are settled in June. The remaining expenses are managed with 66% paid in the subsequent month.
### Schedule of Cash Payments
This schedule organizes the cash payments for selling and administrative expenses over the three months ending May 31.
#### Horizon Financial Inc.
**Schedule of Cash Payments for Selling and Administrative Expenses**
*For the Three Months Ending May 31*
| | **March** | **April** | **May** |
|-----------------------|-----------|-----------|---------|
| **March Expenses:** | | | |
| Paid in March | $ | | |
| Paid in April | | $ | |
| **April Expenses:** | | | |
| Paid in April | | $ | |
| Paid in May | | | $ |
| **May Expenses:** | | | |
| Paid in May | | | $ |
| **Total Cash Payments** | $ | $ | $ |
This format allows businesses to track how much of their monthly expenses are paid at what time, thus ensuring efficient cash flow management.
Transcribed Image Text:**Schedule of Cash Payments for a Service Company**
Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows:
- **March:** $154,100
- **April:** $143,300
- **May:** $130,400
Depreciation, insurance, and property taxes represent $33,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 66% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.
Prepare a schedule of cash payments for selling and administrative expenses for March, April, and May.
---
**Horizon Financial Inc. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31**
| | March | April | May |
|----------------------|-------|-------|-----|
| **March expenses:** | | | |
| Paid in March | $ | | |
| Paid in April | | $ | |
| **April expenses:** | | | |
| Paid in April | | $ | |
| Paid in May | | | $ |
| **May expenses:** | | | |
---
The table above provides a format for organizing the cash payment schedule for the given expenses across the three months. You will need to calculate the actual payment amounts based on the information provided.
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