The tin bucket company projects the following direct, Ask an Expert

Management Studies

The Tin Bucket Company projects the following direct materials purchases:

Purchases on Account

Cash Purchases

December 2011

$30,000

$20,000

January 2012

50,000

30,000

February 2012

60,000

20,000

March 2012

60,000

30,000

The company pays for the cash purchases when they are made. The company pays for 70% of purchases on account in the month that the purchases are made and 30% in the next month. Prepare a schedule of expected cash payments (cash budget) for the first quarter of 2012.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91390964

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