Question

Wateredge Corporation has budgeted a total of S361.800 in costs and expenses for the upcoming quarter. Of this amount, $45,000 represents depreciation expense and $7,300 represents the expiration of prepayments. Wateredge's current payables balance is $265.000 at the beginning of the quarter. Budgeted payments on current payables for the quarter amount to $370,000. The company's estimated current payables balance at the end of the quarter is: $203,500. $179,500. $310,000. $204,500.

Answer 1

Answer:

$204,500

Explanation:

Wateredge Corporation

Budgeted total $361,800

Less Depreciation $45,000

Less expiration of prepayments$7,300

Balance $309,500

Add Wateredge's current payables balance $265,000

Less Budgeted payments on current payables $370,000.

Estimated current payables balance $204,500

Therefore the company's estimated current payables balance at the end of the quarter is $204,500