a. Budgeted monthly absorption costing income statements for July to October are as follows: July $52,800 28,8ee 23, 208 August $82, eee 46,800 35, 2ee September $62, ees 34,8e8 27, 208 October $57, eee 31, 8e8 25, zee Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense" Total selling and administrative expenses Net operating income 1e, see 6,250 17,05 $ 6,15e 14,1ee 8,400 22,5ee $12, 7ee 9,7ee 7,300 17,600 $19, 200 8,5ee 7,100 15,600 $ 9,600 "Includes $2,600 depreciation each month. b. Sales are 20% for cash and 80% on credit. c. Credit sales are collected over a three-month period, with 10% collected in the month of sale, 70% in the month following 20% in the second month following sale. May sales totailed $42,000, and June sales totalled $48.000 d. Inventory purchases are paid for within 15 days. Therefore, 50% of a month's inventory purchases are paid for in the mona purchase. The remaining 50% are paid in the following month Accounts payable for inventory purchases at June 30 total e. The company maintains its ending inventory levels at 75% of the cost of the merchandise to be sold in the following monte marchandice Inventor at luna 20 is $24000 Total selling and administrative expenses Net operating income 27,958 $ 6,150 22,500 $12,70 17.890 $10,200 -15,800 $ 9,600 "Includes $2,600 depreciation each month b. Sales are 20% for cash and 80% on credit c Credit sales are collected over a three-month period, with 10% collected in the month of sale, 70% in the month following sale, and 20% in the second month following sale May sales totalled $42,000, and June sales totalled $48.000 d. Inventory purchases are paid for within 15 days. Therefore, 50% of a month's inventory purchases are paid for in the month of purchase. The remaining 50% are paid in the following month Accounts payable for inventory purchases at June 30 total $17700 e The company maintains its ending inventory levels at 75% of the cost of the merchandise to be sold in the following month The merchandise Inventory at June 30 is $24,000 1 Land costing $5,100 will be purchased in July g. Dividends of $1,600 will be declared and paid in September h The cash balance on June 30 is $9.200, the company must maintain a cash balance of at least this amount at the end of each month The company has an agreement with a local bank that allows it to borrow in increments of $1,000 at the beginning of each month up to a total loan balance of $40,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that Interest is not compounded. The company would, as far as it is able repay the loan plus accumulated interest at the end of the quarter Required: 1!! Next > 340 AM JANUS PRODUCTS, INC. Cash Budget For the Quarter Ended September 30 July August September Quarter 0 0 0 0 Cash balance, beginning Add: Collections from sales Total cash available Deduct: Disbursements: Inventory purchases Land Dividends Selling expenses Administrative expenses 0 0 0 0 Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Land Dividends Selling expenses Administrative expenses 0 0 0 Total disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings Repayments Interest 0 0 0 0 Total financing Cash balance, ending BE Prev 5 of 7 Next > e county