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Sharon Lee, Coronado & Brian Fabricators' accounts payable manager, has just received the company's direct materials purchases budget for the first quarter. January February March
Sharon Lee, Coronado & Brian Fabricators' accounts payable manager, has just received the company's direct materials purchases budget for the first quarter. January February March Quarter Budgeted purchase cost $251,000 $273,000 $284,000 $808,000 The company makes all of its direct materials purchases on account. Sharon's recent review of the company's payment history revealed that the company pays for 25% of its direct materials purchases in the month of purchase and 75% in the month following purchase. The company expects to have an accounts payable balance of $18,000 on January 1, and this amount represents the remaining payables from December's direct materials purchases. Prepare Coronado & Brian's cash payments budget for the first Quarter. (Enter answers in necessary fields only. Leave other fields blank Do not enter 0.) Cash Payments Budget PA January February March $ 251000 284000 December AP 273000 January purchases February purchases March purchases $ $ Total Calculate the accounts payable balance at the end of first Quarter. Accounts Payable balance
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