Question

The Soggy Pirate specializes in providing a variety of fresh seafood to restaurants. They receive daily...

The Soggy Pirate specializes in providing a variety of fresh seafood to restaurants. They receive daily shipments of different types of fish products delivered from the Atlantic and Pacific oceans. Recently the manager was reviewing actual year end data and budgeted data regarding the purchases and payments for the many seafood purchases and is trying to determine how much cash he will have to pay for purchases of seafood. You have been provided the following information. Using this information below prepare a schedule of cash disbursements for purchases and answer the questions presented.
Accounts payable for seafood purchases on the December 31st balance sheet 26,575
Purchases of seafood during the month of January 42,385
Purchases of seafood during the month of February 37,950
Purchases paid for in the month of purchase 65%
Purchases paid for in the month following purchase 35%
A. How much cash will be paid in January?
B. How much cash will be paid in February?
C. What will the accounts payable be at the end of February?
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Homework Answers

Answer #1
A) Cash to be paid in January
Accountts payable 26,575
Jan purchase(42,385*65%)= 27550.25
Cash to be paid in January 54,125 answer
B Cash to be paid in Feb
Jan purchase (42,385*35%)= 14834.75
Feb purchase (37,950*65%)= 24667.5
Cash to be paid in Feb 39502 answer
c) Accounts payable at the end of Feb
37950*35%
13282.5 answer
(round if question requires)
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