What the budgeted cash payments to suppliers next year are

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Reference no: EM132973264

Problem 1: A master budget comprises:

Select one:

A. A budgeted income statement and budgeted cash flow statement only.

B. A budgeted income statement and budgeted statement of financial position only.

C. A budgeted income statement and budgeted capital expenditure only.

D. A budgeted income statement, budgeted statement of financial position and budgeted cash flow statement only.

Problem 2: AB is preparing its cash budget for next year. The estimated accounts payable at the beginning of next year are £540,000. The budgeted purchases for next year are £6,800,000, occurring evenly throughout the year. It is estimated that 75% of purchases will be on credit and the remainder will be for cash. The company pays for credit purchases in the month following purchase.

The budgeted cash payments to suppliers next year are:

Select one:

A. £6,375,000

B. £2,340,000

C. £6,915,000

D. £5,215,000

Reference no: EM132973264

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