A restaurant reported the following information for the months of August, Septem

Question

A restaurant reported the following information for the months of August, September, and October, year 2008. Of the cost of sales, 75 percent is paid in the current month and the remainder is paid in the following month. Of the operating expenses, 98% is paid in the current month and the remainder in the following month. August September October Sales revenue $48,400 $49,880 $51,200 Cost of sales ( 18,392) ( 18,954) ( 19,456) Operating expenses

(2 4 ,684 ) (25 ,439 ) (26,112 ) Operating income $5 ,324 $ 5 , 4 8 7 $ 5 , 6 32 Calculate the total cash payments for the months of September and October, Year 2008

Explanation / Answer

Operating statement

Cash payments

Particulars Aug Sep Oct Sales 48400 49880 51200 (-) Cost of sales 18392 18954 19456 (-) Operating Exp 24684 25439 26112 Operating Income 5324 5487 5632

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