30. Question ID: CMA 1294 3.8 (Topic: Budgeting Calculation Questions)
- This topic has 3 replies, 2 voices, and was last updated 4 months, 2 weeks ago by Lynn Roden.
The question is asking “the projected balance in accounts payable on December 31”.
The answer, however, seems to be for the credit purchase amount made in December.
These two things should be different, imo.
Should the balance on Dec 31st be 203,160? It’s calculated as below
Beginning balance 175,000
-) Payment of Nov credit purchase of Dec material: 520,000 x 0.8 x 0.4 x 0.8 = 133,120
+) Credit purchase of rest of Dec material to be paid in Jan: 520,000x 0.8 x 0.4 x 0.2 = 33,280
+) Credit purchase of Jan material to be paid in Jan: 500, 000 x 0.8 x 0.4 x 0.8 = 128, 000
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