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Striker Corporation is preparing its cash payments budget for next month. The following information pertains to the cash payments: (Click the icon to view the
Striker Corporation is preparing its cash payments budget for next month. The following information pertains to the cash payments: (Click the icon to view the data.) How much cash will be paid out next month? More info a. Striker Corporation pays for 45% of its direct materials purchases in the month of purchase and the remainder the following month. Last month's direct material purchases were $75,000, while the company anticipates $83,000 of direct material purchases next month. b. Direct labor for the upcoming month is budgeted to be $37,000 and will be paid at the end of the upcoming month. c. Manufacturing overhead is estimated to be 130% of direct labor cost each month and is paid in the month in which it is incurred. This monthly estimate includes $18,000 of depreciation on the plant and equipment. d. Monthly operating expenses for next month are expected to be $41,000, which includes $2, 100 of depreciation of office equipment and $1,100 of bad debt expense. These monthly operating expenses are paid during the month in which they are incurred. e. Striker Corporation will be making an estimated tax payment of $7,800 next month
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