Preparing an Accounts Payable Schedule Wight Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: April $374,400 May 411,400 June 416,700 Wight typically pays 35% on account in the month of billing and 65% the next month.

Required: 1. How much cash is required for payments on account in May?

2. How much cash is expected for payments on account in June?

Cash payment expected for May     $387,350.00

Cash payment expected for June     $413,255.00

Explanation:

The question is centered around the preparation of cash budget.

So applying these principles, we can prepare the Expected Cash Payment Schedule for Wight Inc as follows:

Expected Cash Payment Schedule

Installment                               Workings                          May

Month of billing                                  35% * 411,400    143,990

Next Month(for April purchases )            65%*374,400    243,360

Cash payment for  May                                                          387,350

Installment  Workings                             June

Month of billing       35% * 416,700              145,845

Next Month(for May)       65%*411,400                 267,410

Cash payment for June                 413,255.00

Cash payment expected for May     $387,350.00

Cash payment expected for June     $413,255.00

send the charted data