Question

Dakota Williams is one of Texas's premiere party planners. She purchases a variety of supplies, such as plastic tableware, stemware, and decorations, throughout the year. Dakota has prepared the following purchases budget for the coming year:

			1st Quarter		2nd Quarter		3rd Quarter		4th Quarter
	Budgeted purchases		$328,000		$408,000		$465,000		$540,000

Historically, Dakota has paid for 27 percent of her purchases in the quarter of purchase and 73 percent in the quarter following purchase. On December 31 of this year Dakota had a $335,400 accounts payable balance.

Prepare Dakota's cash payments budget for the coming year. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.)

			1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Annual
	A/P from last year		$		$		$		$		$
	1st quarter purchases
	2nd quarter purchases
	3rd quarter purchases
	4th quarter purchases
	Total		$		$		$		$		$

Calculate the accounts payable balance at the end of 4th Quarter.

Accounts Payable balance at the end of 4th Quarter

Answer 1

Answer-

DAKOTA WILLIAMS
Schedule of Cash Payments for Suppliers
Particulars	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Annual
	$	$	$	$	$
Purchases on account	328000	408000	465000	540000	1741000
Cash Paid
Accounts payable from last year	$335400				335400
1st Quarter purchases	$328000*27%= $88560	$328000*73%= $239440			328000
2nd Quarter purchases		$408000*27%= $110160	$408000*73%= $297840		408000
3rd Quarter purchases			$465000*27%= $125550	$465000*73%= $339450	465000
4th Quarter purchases				$540000*27%= $145800	145800
Total cash paid to suppliers $	423960	349600	423390	485250	1682200

Accounts payable at the end of 4th quarter = $540000*73%

= $394200