- This topic has 1 reply, 2 voices, and was last updated 2 years ago by
.
- Posts
Q- > The following items were extracted from a company’s budget for next month:
$
Purchases on credit 360,000
Expected decrease in inventory over the month 12,000
Expected increase in trade payables over the month 15,000
What is the budgeted payment to trade payables for the month?$333,000
$345,000
$357,000
$375,000—–x—- Doubt—- If credit purchase for next is 360,000 and increase in paybles over the month is 15000 then total budget payment should be 360+15 in thousands = 375 , But the answer is B, 345,
Please help in this .The budgeted payment to trade payables for the month can be calculated by subtracting the expected increase in trade payables from the purchases on credit.
So, the purchases on credit are $360,000 and the expected increase in trade payables is $15,000. Therefore, the budgeted payment to trade payables for the month would be $360,000 – $15,000 = $345,000.
- You must be logged in to reply to this topic.