Question: Maria Bockman Bates Hill Fabricators accounts payable manager has

Maria Bockman, Bates & Hill Fabricators' accounts payable manager, has just received the company's direct materials purchases budget for the first quarter (see Exercise 5-15). The company makes all of its direct materials purchases on account. Maria's recent review of the company's payment history revealed that the company pays for 50% of its direct materials purchases in the month of purchase and 50% in the month following purchase. The company expects to have an accounts payable balance of $18,000 on January 1, and this amount represents the remaining payables from December's direct materials purchases.

Prepare Bates & Hill's cash payments budget for the first quarter.

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  • CreatedFebruary 21, 2014
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