Question $5,$ E$9-31$A $($similar to$)$

Part $1$ of $7$

HW Score: $19\mathrm{.}3\%,1\mathrm{.}93$ of $10$ points

Points: $0$ of $1$

The Fielding 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 year.

$($Click the icon to view the cash payment information.$)$

Requirement

Prepare a cash payments budget for April, May, and June and for the quarter. $($If a box is not used in the

The Fielding Company

Cash Payments Budget

For the Months of April through June

Cash payments for direct materials:

$55\%$ of current month purchases

$45\%$ of last month's purchases

$45\%$ of last month's purchases

$$

More info

a$.$ The company pays for $55\%$ 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:

$\backslash$table$[[0,$March,,April,,May,,June$],[$$$,119,000,$$$,139,000,$$$,120,000,$$$,149,000]]$

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:

$\backslash$table$[[,$April,,May,,June$],[$$$,58,000,$$$,68,000,$$$,83,000]]$

c$.$ Manufacturing overhead is estimated to be $140\%$ 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:

$\backslash$table$[[,$March,,April,,May,,June$],[$$$,73,000,$$$,83,000,$s$,85,000,$$$,94,000]]$

Monthly operating expenses are paid in the month after they are incurred. Monthly operating expenses include $$11,000$ for monthly depreciation on administrative offices and equipment, and $$2,700$ for bad debt expense.

e$.$ The company plans to pay $$8,000($cash$)$ for a new server in May.

f$.$ The comnanv must make an estimated tax navment of $$14\mathrm{.}500$ on$.$ June $15$