1. Sales 2016 Actual Sales 2017 Estimated Sales Nov Dec Jan Feb Mar Apr May Units 7,835 7,970 7,450 7,090 8,320 9,070 10,120 The selling price per unit has remained constant for the past year and is expected to remain unchanged throughout the first quarter of 2017 at an amount of $68.99 2. Cash Collection Policy Total sales consist of the following: Cash sales: 5% Credit sales: 95% Credit collections are as follows: In the month following the month of sale: 75% In the second month following the month of sale: 25% The Company does not have any bad debts. 3. Production Policy The Company's policy is to produce during each month, enough units to meet the current month's sales as well as a desired inventory at the end of the month which should be equal to 23% of next month's estimated sales. On December 31, 2016, the finished goods inventory consisted of 1,714 units at a cost of $50.40. 4. Direct Materials Purchasing Policy Each month the Company purchases enough direct materials to meet that month's production requirements and an amount equal to 25% of the next month's estimated production requirements. Each unit of finished product requires 2.83 pounds of direct materials at a cost of $1.38 per pound. On December 31, 2016, the direct materials inventory consisted of 5,213 lbs. at a cost of $1.38. Payments are made as follows: In the month of purchase: 80% In the following month the balance: 20% The accounts payable balance of $5,755.15 as of December 31, 2016, represents 20% of purchases made in December 2016 to be paid in January 2017. 5. Direct Labor Costs Direct labor hours required per unit of finished product: 1.75 Average rate per direct labor hour: $12.25 6. Factory Overhead The Company applies variable factory overhead cost at the rate of 120% of direct labor cost and fixed factory overhead on the basis of the number of direct labor hours. The company has the following fixed overhead expenses per month: Factory supervisor's salary $54,000.00 Factory rent 6,000.00 Factory insurance 6,500.00 Depreciation of factory equipment 600.00 All factory overhead costs, except depreciation, are paid for in cash during the month in which they are incurred. 7. Selling and Administrative Expenses Variable selling expenses are: Freight out $0.80 per unit Sales commissions 1% of sales Fixed selling and administrative expenses per month are: Salaries $8,700.00 Rent 1,800.00 Advertising 150.00 Insurance 250.00 Depreciation (excluding depreciation of computer to be purchased at the end of January 2017 10,050.00 8. Income Taxes Combined tax rate is 30% of Income before taxes computed at the end of the quarter ending March 31, 2017 , payable in the second quarter. 9. Capital Expenditures The Company expects to buy a new computer on January 31, 2017, for use in the sales and administrative offices at a cost of $180,000.00, which will be paid in cash. Monthly depreciation expense will be an additional $3,000.00 . 10. Financing Policy On March 31, 2017, the Company is scheduled to pay $300,000.00 , of the long-term notes payable plus interest expense for the first quarter at a rate of 12% With respect to short-term borrowing, the Company's policy is to borrow at the beginning of a month with an anticipated cash deficiency. A minimum cash balance of $25,000.00 is required of the end of each month. The Company repays the principal of such short-term borrowing at the end of the first following month to the extent of anticipated excess cash. Interest must be paid the following month at a rate of 12%. Borrowing and principal repayments are made in multiples of $1,000.00 . 11. Investing Policy Investments earn interest of the rate of 6% per annum which is credited to our Checking account by the bank at the beginning of the following month. You may assume that the balance of Marketable Securities at December 31, 2016, was outstanding throughout the entire month. 12. General Information Use proper rounding and show two (2) decimal places of accuracy on dollar amounts. Round up and show whole amounts on all other figures. VETTEL MANUFACTURING, INC. BALANCE SHEET DECEMBER 31, 2016 ASSETS Cash $25,711.00 Marketable Securities 20,000.00 Accounts Receivable 650,735.24 Interest Receivable - Inventories: Direct Materials $7,193.94 Work in Process - Finished Goods 86,385.60 93,579.54 Total Current Assets 790,025.78 Property, Plant and Equipment 844,200.00 Less: Accumulated Depreciation (318,600.00) Total Property, Plant and Equipment 525,600.00 Total Assets $1,315,625.78 LIABILITIES AND STOCKHOLDERS EQUITY Accounts Payable $5,755.15 Interest Payable - Income Tax Payable - Short Term Borrowings - Total Current Liabilities 5,755.15 Long-Term Notes Payable 436,000.00 Total Liabilities 441,755.15 Common Stock ($5.00 Par) $475,000.00 Paid in Capital 100,000.00 Retained Earnings 298,870.63 Total Stockholders Equity 873,870.63 Total Liabilities and Stockholders Equity $1,315,625.78 Can you help me prepare a schedule of collections from sales and a schedule of payments from manufacturing? or give me steps on how to get the numbers