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budgeted payments to creditors

How do you calculate it(formula) over six months .

Didn't find your answer?

 

 

Just need an example on how to calculate it for example do you devide/multiply/add or subract it with your percentage.

 

 

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By Accountant A
11th Jun 2019 19:43

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Replying to Accountant A:
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By paulwakefield1
12th Jun 2019 07:55

Give it a rest please.

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Replying to paulwakefield1:
Stepurhan
By stepurhan
12th Jun 2019 09:06

Quote:

Give it a rest please.

The text is Sift's own. It is simply drawing the OP's attention to something they may have overlooked when posting as anonymous. It is therefore a helpful response.

Why do you find it such an issue?

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By atleastisoundknowledgable...
11th Jun 2019 22:32

Quote:

 
budgeted payments to creditors
How do you calculate it(formula) over six months .

Just need an example on how to calculate it for example do you devide/multiply/add or subract it with your percentage. 

Question doesn’t make sense. What is the “it” you are trying to calculate?
Are you asking how to work out what the payments would be on a 6-month payment plan?

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By ghugo
11th Jun 2019 23:20

I need to prepare a schedule of budgeted payments to creditors for the period of January-June.

Below are the budgeted purchases for January to April.
JAN 380 000
FEB 420 000
MAR 460 000
APR 350 000

50% of purchases on cash
75% of outstanding amounts are paid back in the month following the purchase. Balance is settled in the subsequent month.

The following are total purchases figure for Brits Inc. for the past 4 months .

Sept 300 000
Oct 280 000
Nov 400 000
Dec 480 000

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Replying to ghugo:
By Duggimon
12th Jun 2019 08:47

By the definition given, the May and June payments will include half of the purchases made in those months, and June will include 37.5% of the May purchase figure. There is no way to calculate the repayments for those months without those figures.

The rest is simple though, it's 50% of the current month, 37.5% of last month and 12.5% of the month before last.

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Replying to ghugo:
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By Brend201
14th Jun 2019 11:27

Quote:

I need to prepare a schedule of budgeted payments to creditors for the period of January-June.

Below are the budgeted purchases for January to April.

Maybe you should consult your text book or ask your teacher?

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By paulwakefield1
12th Jun 2019 07:53

In any month (M0), the payment will be:

M0*50% + M-1*50%*75% + M-2*50%*25%

Good luck with calculating May and June unless the business has stopped trading!

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