Question
Bainbridge, Inc. has projected sales and production in units for the second quarter of the coming year as follows: August September October Production 95,000 85,000
Bainbridge, Inc. has projected sales and production in units for the second quarter of the coming year as follows:
August
September
October
Production
95,000
85,000
70,000
Sales
85,000
75,000
95,000
Cash-related production costs are budgeted at $12 per unit produced. Of these production costs, 35% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $125,000 per month and increase 2% each month thereafter. The accounts payable balance on July 31 totals $388,000, which will be paid in August.
All units are sold on account for $20 each. Cash collections from sales are budgeted at 50% in the month of sale, 30% in the month following the month of sale, and the remaining 20% in the second month following the month of sale. Accounts receivable on August 1 totaled $575,000 of which $125,000 was from June's sales and the remainder from July). Show work for A & B below on excel schedule.
Required:
- Prepare a schedule for each month showing budgeted cash disbursements for the Bainbridge, Inc. (5 points)
- Prepare a schedule for each month showing budgeted cash receipts for Bainbridge, Inc. (5 Points)
Bainbridge, Inc. has projected sales and production in units for the second quarter of the coming year as follows:
| August | September | October |
Production | 95,000 | 85,000 | 70,000 |
Sales | 85,000 | 75,000 | 95,000 |
Cash-related production costs are budgeted at $12 per unit produced. Of these production costs, 35% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $125,000 per month and increase 2% each month thereafter. The accounts payable balance on July 31 totals $388,000, which will be paid in August.
All units are sold on account for $20 each. Cash collections from sales are budgeted at 50% in the month of sale, 30% in the month following the month of sale, and the remaining 20% in the second month following the month of sale. Accounts receivable on August 1 totaled $575,000 of which $125,000 was from June's sales and the remainder from July). Show work for A & B below on excel schedule.
Required:
- Prepare a schedule for each month showing budgeted cash disbursements for the Bainbridge, Inc. (5 points)
- Prepare a schedule for each month showing budgeted cash receipts for Bainbridge, Inc. (5 Points)
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