The projections of flour (DM) purchases that follow are for the Rice Bowl Restaurant: July-23 August-23 September-23 October-23 November-23 December-23 January-24 Purchases on Account $250,000 $222,000 $214,000 $190,000 $186,000 $178,000 $200,000 Cash Purchases $65,000 $33,000 $80,000 $48,000 $60,000 $54,500 $50,000 The company pays for 10% of purchases on account in the month of purchase' 60% in the month following the purchase and 30% in the second month following the purchase. Prepare a monthly schedule of expected cash payments for direct materials for each of the individual months of the fourth quarter (Oct-Dec) of 2023. Also, please show the total for the quarter.
The projections of flour (DM) purchases that follow are for the Rice Bowl Restaurant: July-23 August-23 September-23 October-23 November-23 December-23 January-24 Purchases on Account $250,000 $222,000 $214,000 $190,000 $186,000 $178,000 $200,000 Cash Purchases $65,000 $33,000 $80,000 $48,000 $60,000 $54,500 $50,000 The company pays for 10% of purchases on account in the month of purchase' 60% in the month following the purchase and 30% in the second month following the purchase. Prepare a monthly schedule of expected cash payments for direct materials for each of the individual months of the fourth quarter (Oct-Dec) of 2023. Also, please show the total for the quarter.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The projections of flour (DM) purchases that follow are for the Rice Bowl Restaurant:
July-23
August-23
September-23
October-23
November-23
December-23
January-24
Purchases on Account
$250,000
$222,000
$214,000
$190,000
$186,000
$178,000
$200,000
Cash Purchases
$65,000
$33,000
$80,000
$48,000
$60,000
$54,500
$50,000
The company pays for 10% of purchases on account in the month of purchase' 60% in the month following the
purchase and 30% in the second month following the purchase. Prepare a monthly schedule of expected cash
paymen for direct materials for each of the individual months of the fourth quarter (Oct - Dec) of 2023. Also,
please show the total for the quarter.
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