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  3. a company is working on a budget for cash payments

A company is working on a budget for cash payments. On September 1, their Accounts...

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Accounting

A company is working on a budget for cash payments. On September 1, their Accounts
Payable balance is $87500. They have budgeted to incur expenses as follows:
Each of the budgeted expenses shown above include monthly depreciation of $13520
and $20400 of monthly rent expense that was previously prepaid for the year. The
remainder of the expenses are paid following the pattern of 19% in the month when it is
incurred and 81% is paid in the month following when it is incurred.
The Accounts Payable balance on September 1 relates to the expenses incurred in the
prior month.
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