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Sorenity Corporation is peeparing is cash payments budget for next month. The following information pertains...

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Accounting

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Sorenity Corporation is peeparing is cash payments budget for next month. The following information pertains to the cash paymonts: (Click the leon to view the data.) How much cash will be paid oul next month? a. Serenity Corporation pays for 45% of its direct materials purchases in the month of purchase and the remainder the following month. The current month's direct material purchases were $71,000, whise Serenity Corporation anticipates $85,000 of direct material purchases next month. b. Direct labour for the upcoming month is budgeted to be $35,000 and will bo paid at the end of the upcoming month. c. Manufacturing overhead is estimated to be 130% of direct labour cost each month and is paid in the month in which it is incurred. This monthly estimate includes $15,000 of depreciation on the plant and equipment. d. Monthly operating expenses for next month are expected to be $47,000, which includes $2,300 of depreciation on office equipment and $1,500 of bad debt expense. These monthy operating expenses are pald during the month in which they are incurred. e. Serenity Corporation will make an estimated tax payment of $7,700 next month

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