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 $52,400 April 64,200 May 68,900 Depreciation, insurance, and property taxes represent $9,000 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. Seventy percent 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.

Question

Business

Jimmy Travis

30 April, 04:42

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 $52,400 April 64,200 May 68,900 Depreciation, insurance, and property taxes represent $9,000 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. Seventy percent 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.

+4

Answers (1)

Know the Answer?

Isai Crosby · Answer 1

Schedule of cash payment is a statement of budgeted cash payment over a specified period to aid an effective planning.

March April May

52400 64200 68900

Dep. Ins. & Tax (9000) (9000) (9000)

43400 55200 59900

March

70%43400 (30380)

April (13020)

(38,640)

May (16560)

(41930)

Cash budget (39380) (60660) (67490)