Stone's Carpeting is preparing a cash flows budget for the year. The following information about...
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Accounting
Stone's Carpeting is preparing a cash flows budget for the year. The following information about quarterly purchases and expenses is available:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
|---|---|---|---|---|
| Inventory purchases | $72,000 | $80,000 | $69,000 | $120,000 |
| Facilities costs | 20,000 | 20,000 | 20,000 | 20,000 |
| Wages and salaries | 27,000 | 32,000 | 25,000 | 44,000 |
| Depreciation | 6,000 | 6,000 | 6,000 | 6,000 |
Based on her review of last year's experience, Ms. Stone determined that 20% of the inventory items were paid for in the month purchased, and the remaining 80% were paid for in the following month. Generally, all other cash expenses are paid in the period incurred. What is the total amount of expected cash payments during the second quarter?
| $131,600 | ||
| $129,200 | ||
| $125,600 | ||
| $123,200 | ||
| $119,600 |
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