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= Homework: Chapter 9 Homework (Sp 22) Question 4, E9-31A (similar to) HW Score: 3 Part 1 of 7 O Points: 0 The Smith Company

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= Homework: Chapter 9 Homework (Sp 22) Question 4, E9-31A (similar to) HW Score: 3 Part 1 of 7 O Points: 0 The Smith Company is preparing its cash payments budget. The following items relate to cash payments the company anticipates making during the second quarter of the upcoming Click the icon to view the cash payment information) Prepare a cash payments budget for April, May, and June and for the quarter. (If a box is not used in the table leave the box empty, do not enter a zero.) Requirement a More info The Smith Company Cash Payments Budget For the Months of April through June April May Cash payment for direct materials: 45% of current month purchases 55% of last month's purchases June Quarter a. The company pays for 48% of its direct ma remainder the following month. The compar are anticipated to be as follows: March April ME $ 113,000 $ 130,000 $ 123, b. Direct labor is paid in the month in which it is quarter is budgeted as follows: April May Juno non More info April a. The company pays for 45% 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 May June $ 113,000 $ 130,000 $ 129,000 $ 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 $ 48,000 $ 58,000 $ 73,000 c. Manufacturing overhead is estimated to be 130% of direct labor cost each month. This monthly estimate includes $38,000 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 $ 74,000 $ 84,000 $ 85,000 90,000 Monthly operating expenses are paid in the month after they are incurred. Monthly operating expenses include $14,000 for monthly depreciation on administrative offices and equipment, and $3,000 for bad debt expense. e. The company plans to pay $5,000 (cash) for a new server in May. f. The company must make an estimated tax payment of $11,500 on June 15

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