1. Prepare a Sales Budget for January 2020, February 2020, and March 2020. Juniper Inc. plans to sell tree fixtures for $90 each. The company sold 1,000 tree fixtures in December 2019. It projects that it will sell 12% above each previous month's sale in the month that follow. The sales budget estimated number of units a company will sell each month and the sales dollars it will generate from selling the projected units. 2. Prepare a Purchase Budget (i.e., the projected number of tree fixtures to buy) for January 2020, February 2020, and March 2020. Juniper Inc. wants to purchase an additional 25% of the next month's projected tree sales in each current month as safety stock. As of December 31, 2019, the company had 250 trees in ending inventory. REMEMBER: The purchase budget only indicates the number of units to purchase. 3. Prepare an Accounts Payable Budget (Amount due for purchases of tree fixtures) for the first quarter including January 2020, February 2020, and March 2020. Juniper Inc. will purchase the number of units indicated in the purchase budget on account (i.e., company will pay later). How much will Amber Inc. owe for the light purchases? Assume there was no beginning Accounts Payable. The cost of each tree fixture is $40. Prepare a Cash Receipts Budget (i.c., the collection of cash from Accounts Receivable) for January 2020, February 2020, March 2020. Assume that the cash receipts only relate to the budgeted sales amounts. Juniper projects collecting sales dollars in the following manner: a. 65% of the current month's sales will be in cash b. 30% will be collected in the month following the sale c. 5% is not expected to be collected 5. Prepare a Cash Payments Budget. Juniper pays for purchases, selling, and administrative expenses each month in the following manner: a. Accounts Payable: i. 10% of the A/P in the month of the sale ii. 90% of the balance due in the month following purchase b. Estimated Operating Expenses: i. Selling Expense equal to $12 per unit sold during the month ii. Admin Expense of $28,000 each month Prepare a budget for January 2020, February 2020, and March 2020. 6. Based on the projected Cash receipts and Cash payments, will the company have a cash surplus or a cash shortfall in January 2020, February 2020, and March 2020? How much per month? 1. Prepare a Sales Budget for January 2020, February 2020, and March 2020. Juniper Inc. plans to sell tree fixtures for $90 each. The company sold 1,000 tree fixtures in December 2019. It projects that it will sell 12% above each previous month's sale in the month that follow. The sales budget estimated number of units a company will sell each month and the sales dollars it will generate from selling the projected units. 2. Prepare a Purchase Budget (i.e., the projected number of tree fixtures to buy) for January 2020, February 2020, and March 2020. Juniper Inc. wants to purchase an additional 25% of the next month's projected tree sales in each current month as safety stock. As of December 31, 2019, the company had 250 trees in ending inventory. REMEMBER: The purchase budget only indicates the number of units to purchase. 3. Prepare an Accounts Payable Budget (Amount due for purchases of tree fixtures) for the first quarter including January 2020, February 2020, and March 2020. Juniper Inc. will purchase the number of units indicated in the purchase budget on account (i.e., company will pay later). How much will Amber Inc. owe for the light purchases? Assume there was no beginning Accounts Payable. The cost of each tree fixture is $40. Prepare a Cash Receipts Budget (i.c., the collection of cash from Accounts Receivable) for January 2020, February 2020, March 2020. Assume that the cash receipts only relate to the budgeted sales amounts. Juniper projects collecting sales dollars in the following manner: a. 65% of the current month's sales will be in cash b. 30% will be collected in the month following the sale c. 5% is not expected to be collected 5. Prepare a Cash Payments Budget. Juniper pays for purchases, selling, and administrative expenses each month in the following manner: a. Accounts Payable: i. 10% of the A/P in the month of the sale ii. 90% of the balance due in the month following purchase b. Estimated Operating Expenses: i. Selling Expense equal to $12 per unit sold during the month ii. Admin Expense of $28,000 each month Prepare a budget for January 2020, February 2020, and March 2020. 6. Based on the projected Cash receipts and Cash payments, will the company have a cash surplus or a cash shortfall in January 2020, February 2020, and March 2020? How much per month
