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Sutter Corporation is preparing its cash payments budget for next month. The following information pertains to the cash payments: (Click the icon to view the
Sutter 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? a. Sutter Corporation pays for 55% of its direct materials purchases in the month of purchase and the remainder the following month. The current month's direct material purchases were $71,000, while Sutter Corporation anticipates $84,000 of direct material purchases next month b. Direct labour for the upcoming month is budgeted to be $31,000 and will be paid at the end of the upcoming month c. Manufacturing overhead is estimated to be 150% of direct labour cost each month and is paid in the month in which it is incurred. This monthly estimate includes $12.000 of depreciation on the plant and equipment. d. Monthly operating expenses for next month are expected to be $43,000, which includes $2,600 of depreciation on office equipment and $1.100 of bad debt expense These monthly operating expenses are paid during the month in which they are incurred e. Sutter Corporation will make an estimated tax payment of $7,600 next month
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