1 ABC Co. is in the final stages of preparing its master budget for 2022. The following budgeted data has been provided for the company > Budgeted sales: January February April Elected sales in units 9,000 10,500 10,000 Sales in dollars S108.000 $126,000 $132.000 $120.000 March 11.00 > Cash sales 20% Credit sales (sales on account) 80% >> The collection pattern for the credit sales has traditionally been as follows: Month of sale 35% First month following sale Second month following sale 50% 15% > Raw Material purchases January February March April Raw material purchases $72.000 $95,000 $105,000 S88,000 Note: Raw material purchases are puhased on account, with 40% paid in the month of purchase and the balance owed paid the following month > Monthly operating expenses are budgeted as follows: Direct labour Variable overhead Fixed overhead (includes $1,000 OT denunciation Sales commissions (paid in the current month) P2 P4 P3 New $4,400 per month 110% of direct labour cost $8,300 5% of sales P1 20 21 > Monthly operating expenses are budgeted as follows: Direct Labour Variable whead Fixed overnachudes > Sales comensions (paid in the current month Advertising $4,400 per month 110. of direct labour $,0 5% of sales $11,700 >> 24 22 21 > Other expenditures The company will purchase and pay for equipment in following months: February $25.000 $12.000 Cash dividends $10,000 are paid in March, June, September and December 39 March 30 31 32 33 44 > Cash balance requirements and interest The company must maintain a minimum cash balance of $15,000 each month. Money is borrowed at the beginning of the month and repaid almonth end. Interest is paid each month and the rate is 12% per year. The cash balance on March 1 = $17,500, Required: Calculate the total expected cash collections for the month of March. (5 marks) 5 50 1 Symons Manufacturing Schedule of Expected Cash Collections 1 Calculate the total expected cash collections for the month of March (5 marks) Symons Manufacturing Schedule of Expected Cash Collections For the Month ending March 31, 2022 Total expected cash collections for March 2.0 2 Calculate budgeted cash expenditures for raw materials and the accounts payable balance on March 31. (2 marks) Total Cash Expenditures Accounts payable March 31 8 D ABC Co. Cash Budget For the Month ending March 31, 2021 Beginning Cash Balance Total Cash available Less Cash disbursements Total Cash disbursements Excess (deficiency) Financing Total Financing Ending Cash Balance P2 P4 P3 New