A B Information provided: C D E F G LimeLemon inc. Is a manufacturer of athletic wear for running and yoga. They sell premium athletic pants. LimeLemon Inc. has a March 31 year end. Sales: Estimated Sales information for the upcoming fiscal year are as follows: Month April May June July August Sales in Units Sales Price Per 430 $72 510 $74 490 $75 520 $73 280 $72 Production: When creating the budget, management likes to have extra inventory on hand in the event that actual sales are higher than budgeted. Ending inventory as a percentage of the following month's sales Ending inventory at March 31 in units 15% 150 Materials: Management budgets for extra materials in the event that there is a shortage from suppliers. Ending material units as a percentage of the following month's production needs | 25% Ending materials at March 31 in yards 350 Number of yards of material required per pair of pants produced Cost of material per yard 2.75 $11 Cash Sales vs. Credit Sales: LimeLemon's sales history indicates that sales are split between cash and credit as follows: Percentage of total sales made up of cash sales Percentage of total sales made up of credit sales 30% 70% Collection data: LimeLemon has reviewed past collection history and has determined that credit sales will be collected as follows: Credit sales collected in the month of the sale 25% Credit sales collected in the month following the sale 75% Credit sales for the month of March $42,000 Payment data: LimeLemon will pay for its purchases on the following schedule: Collection data: LimeLemon has reviewed past collection history and has determined that credit sales will be collected as follows: Credit sales collected in the month of the sale Credit sales collected in the month following the sale Credit sales for the month of March Payment data: LimeLemon will pay for its purchases on the following schedule: Payments on purchases of materials in the month of the purchase 25% 75% $42,000 Payments on purchases of materials in the month following the purchase Credit purchases for the month of March 60% 40% $23,000 Cash flow information: LimeLemon has access to an open line of credit with the bank to borrow money if necessary. To keep things simple, ignore interest calculations of the bank borrowings. Also, loan borrowings and repayments are taken in $1,000 increments. LimeLemon maintains that it will pay repay debts as soon as possible with excess cash that becomes available. Cash bank account balance at March 31 Minimum required cash bank account balance $10,500 $5,000 Budgeted Expenses: April May June Payment of operating expenses $12,400 $13,400 $15,200 Depreciation $2,500 $2,500 $2,500 Purchase of new equipment $10,000 $25,000 $0 Payment of cash dividends $2,000 $2,000 $2,000 Part a) Prepare the sales budget for the quarter ended June 30 LimeLemon Inc. Sales Budget For the quarter ended June 30, 20XX Sales in units Sales Price Total Sales Part b) Prepare the production budget for the quarter April LimeLemon Inc. Production Budget Additional notes as needed: May June Total July August May June Total July August For the quarter ended June 30, 20XX April Budgeted Sales Volume in units (from sales budget) Add: Budgeted Ending Inventory Less: Budgeted Beginning Inventory Budgeted Production Units Part c) Prepare the direct materials purchases budget and a purchasing budget for the quarter Budgeted production (# of pants) Direct Materials per pair of pants Budgeted Direct Materials to be Used (lbs) Add: Budgeted Ending Inventory Less: Budgeted Beginning Inventory Direct Materials to be Purchased (yards) LimeLemon Inc. Direct Material Purchases Budget For the quarter ended June 30, 20XX April LimeLemon Inc. Purchasing Budget Direct Materials to be Purchased (yards) Budgeted Direct Material (cost/yard) Budgeted Purchase Cost For the quarter ended June 30, 20XX April May June Total July August May June Total Part d) Prepare a forecast of cash and credit sales for the quarter and a schedule of cash receipts for the quarter LimeLemon Inc. Forecasted Cash Sales and Credit Sales For the quarter ended June 30, 20XX Sales (taken from Sales Budget) Cash Sales as a percentage of Total Sales Credit Sales as a percentage of Total Sales April LimeLemon Inc. Schedule of Cash Receipts For the quarter ended June 30, 20XX April Cash Sales Cash collections on March credit sales Cash collections on April credit sales Cash collections on May credit sales Cash collections on June credit sales Total cash collections on credit sales Total Cash Receipts Part e) Prepare the schedule of cash disbursements for the quarter Payment on March material purchases Payment on April material purchases Payment on May material purchases Payment on June material purchases Total Cash Disbursements LimeLemon Inc. Schedule of Cash Disbursements For the quarter ended June 30, 20XX April Part f) Prepare a cash budget for the first quarter May June Total May June Total May June Total Part f) Prepare a cash budget for the first quarter Cash (Beginning) Cash Receipts: Cash Sales Cash Collections on Credit Sales Total Cash Available Cash Disbursements: Payments to supplies for material purchases Payments on operating expenses Capital expenditures Dividends Total Cash Disbursements Cash Excess (Deficit) Financing Requirements: Amounts Borrowed Amounts Repaid Ending Cash Loan Balance LimeLemon Inc. Cash Budget For the quarter ended June 30, 20XX April May June Total April May June