ANSWER A-L USING INFORMATION PROVIDED

A.All sales are on account. Sales on account are collected as follows: 40% in the month of sale; 45% in the month following the sale; and 15% in the second month following the sale. Prepare a schedule of cash collections for October, November, and December (email to me after exam) What are the projected cash collections for October?

B.What are the estimated cash collections for November?

C.What are the estimated cash collections for December?

D.What is the estimated accounts receivable balance on December 31?

E. All direct materials are purchased on account. Purchases on account are paid as follows: 10% in the month of purchase and 90% in the month following the purchase. Prepare a schedule of cash payments for materials for October, November, and December (email to me after the exam). What are the expected payments for materials for October?

F.What are the expected cash payments for materials for November?

G.What are the expected cash payments for materials for December?

H.What is the expected accounts payable balance on December 31?

I.All other costs are paid as incurred. The overhead costs include $6,000 of monthly depreciation and the selling and administrative costs include $5,000 of monthly depreciation. The projected beginning cash balance on October 1 is $10,000. Wilbur would like to maintain a $10,000 cash balance each month. Wilbur intends to pay a $15,000 cash dividend to shareholders in December. Prepare a cash budget for October, November, and December (email to me after exam). What is the projected cash balance at the end of October?

J.What is the projected cash balance on November 30?

K.What is the expected cash balance on December 31?

L.If Wilbur wants to maintain a minimum $10,000 cash balance each month, is additional cash planning required? Give two possible suggestions for amending the cash budget.

Wilbur Company is preparing a cash budget for the last quarter of the year 2017. The following budgeted information is available: Sales Direct Material Purchases Direct Labor Costs Overhead Costs Selling and Administrative Costs August September October November December $200,000 $250,000 $180,000 $210,000 $240,000 30,000 $45,000 $40,000 $42,000 $43,000 62,000 $67,000 $68,000 $64,000 $66,000 62,000 $62,000 $62,000 $62,000 $62,000 50,000$50,000 $50,000 $50,000 $50,000