Budgeted sales are 1,000 tires for the first quarter and expected to increase by 200 tires per quarter. Cash sales are expected to be 10% of total sales, with the remaining 90% of sales on account.
| Cash receipts for sales on account are 85% in the quarter of the sale and 15% in the quarter following the sale; December 31, 2018, Accounts Receivable is received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. |
Cash payments Budget
This is all the info I have started already.
Cash Receipts from Customers First Second Third Fourth Quarter Quarter Quarter Quarter Total Reference Total sales 85000 102000 119000 136000 442000 First Second Third Fourth Quarter Quarter Quarter Quarter Total Cash Receipts from Customers: Accounts Receivable balance, December 31, 2018 1st Qtr. Cash sales Gessing Tire Company Sales Budget For the Year Ended December 31, 2019 $ 25,000 First Second Third Fourth 65,025 Quarter Quarter Quarter Quarter Total 1st Qtr.Credit sales, collection of Qtr. 1 sales in Qtr. 1 1st Qtr.Credit sales, collection of Qtr. 1 sales in Qtr. 2 $ 11,475 Budgeted tires to be sold 1,000 85$ 1,200 85$ 1,400 85$ 1,600 85$ 5,200 85 2nd Qtr. Cash sales Sales price per unit 78,030 S 85,000 $ 102,000||$ 119,000 $ 136,000 $ 442,000 2nd Qtr.Credit sales, collection of Qtr. 2 sales in Qtr. 2 2nd Qtr.Credit sales, collection of Qtr. 2 sales in Qtr. 3 Total sales $ 13,770 3rd Qtr. Cash sales Print Done 1st Qtr.Credit sales, collection of Qtr. 1 sales in Qtr. 1 65,025 1st Qtr.Credit sales, collection of Qtr. 1 sales in Qtr. 2 $ 11,475 2nd Qtr.-Cash sales 78,030 $ 13,770 2nd Qtr.-Credit sales, collection of Qtr. 2 sales in Qtr. 2 2nd Qtr.Credit sales, collection of Qtr. 2 sales in Qtr. 3 3rd Qtr.Cash sales 3rd Qtr.Credit sales, collection of Qtr. 3 sales in Qtr. 3 3rd Qtr.Credit sales, collection of Qtr. 3 sales in Qtr. 4 91,035 $ 16,065 4th Qtr.Cash sales 4th Qtr.Credit sales, collection of Qtr. 4 sales in Qtr. 4 104,040 Total cash receipts from customers Accounts Receivable balance, December 31, 2019: 4th Qtr. Credit sales, collection of Qtr. 4 sales in Qtr. 1 of 2020 $ 18,360 Gessing Tire Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be produced 960 1,260 1,460 1,660 5,340 2 2 2 Direct materials per tire 2 Direct materials needed for production 1,920 2,520 2,920 3,320 10,680 Plus: Desired direct materials in ending inventory 1,008 1,168 1,328 800 800 Total direct materials needed 2,928 4,248 3,688 1,008 4,120 1,328 11,480 800 800 1,168 Less Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per pound 2,128 2,680 8.50 3,080 8.50 $ 2,792 8.50 10,680 8.50 $ 8.50 $ $ $ $ 18,088 | $ 22,780 || $ 26,180 $ 23,732 | $ 90,780 Budgeted cost of direct materials First Second Third Fourth Quarter Quarter Quarter Quarter Total Cash Payments Direct Materials: Accounts Payable balance, December 31, 2018 1st Qtr.Qtr. 1 direct material purchases paid in Qtr. 1 1st Qtr. Qtr. 1 direct material purchases paid in Qtr. 2 2nd Qtr.Qtr. 2 direct material purchases paid in Qtr. 2 2nd Qtr.Qtr. 2 direct material purchases paid in Qtr. 3 3rd Qtr.Qtr. 3 direct material purchases paid in Qtr. 3 2nd Qtr.Qtr. 2 direct material purchases paid in Qtr. 3 3rd Qtr.Qtr. 3 direct material purchases paid in Qtr. 3 3rd Qtr.Qtr. 3 direct material purchases paid in Qtr. 4 4th Qtr. Qtr. 4 direct material purchases paid in Qtr. 4 Total payments for direct materials
