Question

0.5 pts Question 8 A company currently has $200 of supplies. They budgeted to use $1.200 of supplies this month and $1,400 next month. They want to end the month with 20% of next month's budgeted supplies expense. What amount of supplies does the company need to purchase! 0.5 pts D Question 9 A company purchases supplies on account. Their supplier requires that 75% of purchases on account be paid in the month of the purchase. Purchases of supplies on account were as follows: June: $300 July: $350 August: $400 Assuming the company paid only what the supplier required each month, how much would the company have paid their supplier in July? 0.5 pts Question 10 A company purchases equipment for $10,000 and plans to use it for 6 years. After the six years, the company estimates it can sell the equipment for $1.600. How much depreciation expense should the company record each year?

Answer 1

8)	Budgeted supplies for this month	$         1,200
	Add:
	Required end inventory	$             280
	(1400*0.20)
	Less:
	Current Inventory	$             200
	Supplies to be purchased	$         1,280
9)	Amount to be paid in july
	=$350*0.75
	=$262.5
10)	Annual Depreciation = (Cost Of The Asstes- Salvage Value)/ Life Of The Asset
	= $10000-1600/6 years
	= $1400 per year
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