Need help with the following attachment. Please show work. 26) Purchases Cash Pa

ID: 2408319 • Letter: N

Question

Need help with the following attachment. Please show work.

26) Purchases Cash Payments Budget. All direct material purchases made by Keen and Company are on credit. Accounts payable at the end of last quarter totaled S50,000 Purchases for the first quarter of the upcoming period are expected to be $200,000. The company expects to pay 40 percent of purchases in the quarter of purchase and 60 percent the quarter following the purchase. Prepare a purchases cash payments budget for the first quarter of the upcoming period using the middle of Figure 9.11 "Cash Budget for Jerry's Ice Cream" as a guide. (Hint: you are preparing a purchases cash payments budget for the first quarter only.)

Explanation / Answer

Keen and Company

Purchase Cash Payment Budget

Quarter Ending June 30th

Cash Payment for Purchases of Material

Fourth Quarter Prior Year

$ (50,000.00)

First Quarter ($ 200000 Purchases)

$ (80,000.00)

Total Cash Payment for Purchases

$ (130,000.00)