Ma & Pa's
Estimated Purchases Payment Schedule
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Payment Assumptions From
From Payment Analysis
Payments on Purchases (%)  
Cash Purchase  
Cash Purchases in the Current Month 10.0%
   
Purchases On Account  
% of Payments in the Month Of Purchase 0.0%
% of Payment One Month After Purchase 90.0%
% of Payment Two Months After Purchase 0.0%
% of Payment Three Months After Purchase 0.0%
Additional Assumptions:
Beginning Amounts Owed To Suppliers
all paid in Month 1 22,800
Calculated Purchases and Inventory Needed Total Month 1 Month 2 Month 3    
Beginning Inventory 21,000 21,000 21,632 21,155    
Purchases Needed For Sales and Inventory 62,054 18,900 19,681 23,473    
Cost Of Goods Sold 61,104 18,268 20,158 22,678    
Ending Inventory 21,950 21,632 21,155 21,950    
Using  our Assumptions, The Calculated Purchases
and Inventory Schedule above and the Calculations from the
Payment Analysis the Following Purchases Payment
Schedule was prepared:
Estimated Purchases Payment Schedule
  Total Month 1 Month 2 Month 3
Cash Purchases Current Periods 6,205 1,890 1,968 2,347    
             
Current Year Payments on  Purchases on Account            
             
Payment in the Current Month            
Payment One Month After Purchase 34,723   17,010 17,713    
Payment Two Months After Purchase          
Payment Three Months After Purchase          
             
Accounts Payable Payments Current Periods 34,723 0 17,010 17,713    
             
             
             
Accounts Payable Prior Period Payments   22,800        
             
             
Total Purchases Payments 63,728 24,690 18,978 20,060    
             
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