1) Booth Inc. has the following information for its first year of operations: Revenues (250,000 units) Manufacturing costs: Materials Variable cash costs Fixed cash costs Depreciation (fixed) Marketing & administrative costs: Marketing (variable) Marketing depreciation Administrative (fixed) Administrative depreciation Total costs Operating profits Beginning inventory Merchandise purchases Sales Ending inventory September 44,500 3,000 37,500 10,000 $ 3,730,000 All depreciation charges are fixed and are expected to remain the same for the second year. Sales volume is expected to increase by 13%, and sales prices are expected to increase by 4%. Material costs per unit are expected to increase by 8%. Other unit variable manufacturing costs are expected to increase by 10% per unit. Fixed manufacturing costs (other than depreciation) are expected to increase by 6%. Variable marketing costs per unit will remain constant. Administrative costs (other than depreciation) are expected to increase by 12%. Assume there are no inventories. Booth operates on a cash basis. a. Prepare a budgeted income statement for the second year. 2) Lines Company is a retailer that sells a single product. The company's inventories, production, and sales in units for the next three months have been budgeted as follows: October 10,000 60,000 60,000 10,000 $ 665,000 904,000 360,000 445,000 475,000 113,000 450,550 42,000 $ 3,454,550 $ 275,450 November December 10,000 10,000 70,000 35,000 70,000 40,000 10,000 5,000 Units are sold for $12 each. Thirty percent of all sales are paid for in the month of sale and the balance is paid for in the following month. Merchandise is purchased for $7 per unit. Forty percent of purchases are paid for in the month of the purchase and the remainder is paid for in the month following purchase. Marketing and administrative expenses are expected to total $140,000 each month. Forty- five percent of these expenses will be paid in the month in which they are incurred and the balance will be paid in the following month. Cash at September 30 totaled $90,000. A payment of $250,000 for the purchase of equipment is scheduled for November, and a dividend of $150,000 is to be paid in December. Ignore depreciation for purposes of preparing the schedules. a. Prepare a cash collections budget for October, November, and December. b. Prepare a cash disbursements budget including merchandise purchases and marketing and administrative expenses for October, November, and December c. Prepare a cash budget for October, November, and December. There is no minimum required ending cash balance.

1) Booth Inc, has the following information for its first year of operations: All degreciation charges are fired and are expected to femain the same for the second vear. Sales volume is expected to increase by 13%, and sales prices are expected to increase by 4\%. Material costs per unit are expected to increase by 8N. OCher unit variable manufacturing costs are expected to increase by 10% per unit. Foed mansacturing costs (other than depreciation) are expected to increase by 6%. Variable marketing costs per unit will remain constant. Administrative costs fother than depreciation) are expected to increase by 12%. Assume there are no invertories. Booth operates on a cash basis. a. Prepare a budgeted income statement for the second year. 2) Unes Company is a retaller that sells a single product. The company's inventonies, production, and sales in units for the next three months have been budgeted as follows: Unts are sold for $12 each. Thirty percent of at sales are paid for in the month of sale and the balance is paid for in the following month. Merchandise is purchased for $7 per unit. Forty percent of purchases are paid for in the month of the purchase and the remainder is paid for in the morth following purchase. Marketing and administrative expenses are expected to total $140,000 each monen. Forty. five percent of these expenses wal be paid in the month in which they are incurred and the talance will be paid in the following month. Cash at September 30 totaled $90,000. A payment of $250,000 for the purchase of equipment is schediled for Noverber, and a dividend of $150,000 is to be paid in December. Ignore depreciation for purposes of preparing the schediles. a. Prepare a cash collections budget for October, November, and December. b. Prepare a cash distbursements budget indoding merchandise purchases and marketing and administrative expenses for October, November, and December c. Prepare a cash budpet for Octobes, November, and December, There is no minimum required ending cash balance