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E9-29A (similar to) The Anderson Company is preparing is cash payments budget. The following items relate to cash payments the company anticipates making during the

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E9-29A (similar to) The Anderson Company is preparing is cash payments budget. The following items relate to cash payments the company anticipates making during the second quarter of the upcoming year Cick the icon to view the cash payment information) Requirement Prepare a cash payments budget for April, May, and June and for the quarter of a box is not used in the table leave the box empty, do not enter a zer) The Anderson Company Cash Payments Budget For the Months of April through June April May Cash payments for direct materials: 50% of current month purchases 50% of last month's purchases June Quarter Enter any number in the edit fields and then click Check Answer a. The company pays for 50% of its direct materials purchases in the month of purchase and the remainder the following month. The company's direct material purchases for March through June are anticipated to be as follows: March April May June $ 118,000 $ 139,000 $ 120,000 $ 147,000 b. Direct labor is paid in the month in which it is incurred. Direct labor for each month of the second quarter is budgeted as follows: April May June $ 52,000 $ 62,000 $ 77,000 c. Manufacturing overhead is estimated to be 160% of direct labor cost each month. This monthly estimate includes $35,000 of depreciation on the plant and equipment. All manufacturing overhead (excluding depreciation) is paid in the month in which it is incurred. d. Monthly operating expenses for March through June are projected to be as follows: April June May $ 52,000 $ 62,000 $ 77,000 c. Manufacturing overhead is estimated to be 160% of direct labor cost each month. This monthly estimate includes $35,000 of depreciation on the plant and equipment. All manufacturing overhead (excluding depreciation) is paid in the month in which it is incurred. d. Monthly operating expenses for March through June are projected to be as follows: March April May June June $ 75,000 $ 86,000 $ 85,000 $ 97,000 Monthly operating expenses are paid in the month after they are incurred. Monthly operating expenses include $11,000 for monthly depreciation on administrative offices and equipment, and $3,200 for bad debt expense. e. The company plans to pay $8,000 (cash) for a new server in May. 1. The company must make an estimated tax payment of $13,500 on June 15

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