the projections of direct materials purchases that follow are for the stromboli corp 544695
Cash Budget
The projections of direct materials purchases that follow are for the Stromboli Corporation.
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the projections of direct materials purchases that follow are for the stromboli corp 544695
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|
Purchases on Account |
Cash Purchases |
|
|
December, 2010 |
$40,000 |
$20,000 |
|
January, 2011 |
60,000 |
30,000 |
|
February, 2011 |
50,000 |
25,000 |
|
March, 2011 |
70,000 |
35,000 |
The company pays for 60 percent of purchases on account in the month of purchase and 40 percent in the month following the purchase. Prepare a monthly schedule of expected cash payments for direct materials for the first quarter of 2011.
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