BUDGETING Nest Thursday 12. 2:0 . Mate Boomerang Corporation manufactures and sells plastie boomerangs. Expected boomerang sales (in units) for the upcoming months are as follows: July Aug. Sept. Oct. Nov. Dec. Expected unit sales. 12,000 15,000 10,000 8,000 7,000 11,000 Seven ounces of plastic resin are needed to produce every boomerang, Mate likes to have enough plastie resin on hand at the end of the month to cover 25% of the next month's production requirements. Mate also likes to maintain a finished goods inventory equal to 10% of the next month's estimated sales. Required: How many ounces of plastic resin should Mate plan on purchasing during the month of October? The following information is budgeted for MeCracken Plumbing Supply Company for next quarter: April May June Sales... $110,000 $130,000 $180,000 Merchandise purchases .. ... $85,000 $92,000 $105,000 Selling and administrative expenses....... 350,000 $50,000 $50,000 Forty percent are collected in the month of sale, 58% in the month following the sale, and the remaining 2% are uncollectible. Merchandise purchases are paid in full the month following the month of purchase. The selling and administrative expenses above inelude 98,000 of depreciation on display fixtures and warehouse equipment. All other selling and administrative expenses are paid as incurred. McCracken wants to maintain a cash balance of $15,000. Any amount below this can be borrowed from a local bank as needed in increments of $1,000. All borrowings are made at month end. Required: Prepare McCracken's cash budget for the month of May. Use good form. McCracken expects to have $24,000 of cash on hand at the beginning of May. 3 .Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: Sales are budgeted at $360,000 for November, S380,000 for December, and S350,000 for January. Collections are expected to be 75% in the month of sale, 20% in the month following the sale, and 5% uncollectible. The cost of goods sold is 65% of sales The company purchases 60% of its merchandise in the month prior to the month of sale and 40% in the month of sale. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $21.900. Monthly depreciation is $20,000. Ignore taxes. Garrison, Managerial Accounting. Eleventh Edition BUDGETING Statement of Financial Position October 31 $ 16,000 Assets Cash .... Accounts receivable Colseing Stenventory.... ste net of allowance for uncollectible accounts).. Property, plant and equipment (net of $500,000 accumulated depreciation)... Total assets.... 74,000 140,400 blo 1,066,000 $1.296,400 Liabilities and Stockholders' Equity Accounts payable............... $ 240,000 Common stock..... 649,000 Retained earnings............. .... ........................ 416,400 Total liabilities and stockholders' equity .... .... $1.296,400 Required: a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a Merchandise Purchases Budget for November and December. c. Prepare Cash Budgets for November and December. d. Prepare Budgeted Income Statements for November and December. e. Prepare a Budgeted Balance Sheet for the end of December