Cash receipts from customers!

Tamison Toy Company Balance Sheet December 31, 2018 Assets Current Assets: 15,000 40,000 600 5,000 Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation 60,600 199,000 (42,000) $ 157,000 Total Assets 217,600 Liabilities Current Liabilities: Aannunt Dounia eck A 40,000 600 5,000 Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation 60,600 199,000 (42,000) 157,000 SS Total Assets 217,600 Liabilities 9,000 Current Liabilities: Accounts Payable Stockholders' Equity Common Stock, no par $ Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 170,000 38,600 208,600 $ 217,600 ck A a. Budgeted sales are 1,100 sets for the first quarter and expected to increase by 100 sets per quarter. Cash sales are expected to be 40% of total sales, with the remaining 60% of sales on account. Sets are budgeted to sell for $80 per set. b. Finished Goods Inventory on December 31, 2018, consists of 200 sets at $25 each. C. Desired ending Finished Goods Inventory is 30% of the next quarter's sales, first quarter sales for 2020 are expected to be 1,500 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 600 pounds. Direct materials requirement is 3 pounds per set. The cost is $1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 600 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor, direct labor costs average $8 per hour. g. Variable manufacturing overhead is $1.60 per set. h. Fixed manufacturing overhead includes $4,000 per quarter in depreciation and $7,025 per quarter for other costs, such as utilities, insurance, and property taxes. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $2,400 per quarter for rent; $600 per quarter for insurance; and $500 per quarter for depreciation. 1. Variable selling and administrative expenses include supplies at 2% of sales. Capital expenditures include $25,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. I Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m Dirant materiale nurhaene aro naid Ang in the nuantar nuehnend and 200. In the fallu Auntar Print * More Info e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 600 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor, direct labor costs average $8 per hour g. Variable manufacturing overhead is $1.60 per set. h. Fixed manufacturing overhead includes $4,000 per quarter in depreciation and $7,025 per quarter for other costs, such as utilities, insurance, and property taxes. 1. Fixed selling and administrative expenses include $8,000 per quarter for salaries: $2,400 per quarter for rent; $600 per quarter for insurance; and $500 per quarter for depreciation. J. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $25,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. I. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 80% in the quarter purchased and 20% in the following quarter, Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $3,000 per quarter and is paid in the quarter incurred. p. Tamison desires to maintain a minimum cash balance of $40,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter: principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 6% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Print Done Fourth Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter 1,100 1,200 1,300 80 $ 80 $ 80 $ $ 88,000 $ 96,000 $ 104,000 $ Quarter Total 5,000 Budgeted sets to be sold Sales price per unit 1,400 80 $ 112,000 $ 80 400,000 Total sales First Quarter Second Quarter Third Quarter Fourth Quarter Total Total sales irst Second Quarter Third Quarter Fourth Quarter Quarter Total Cash Receipts from Customers: Accounts Receivable balance, December 31, 2018 1st Qtr-Cash sales 1st Qur-Credit sales, collection of Qtr. 1 sales in Qtr. 1 1st Qtr --Credit sales, collection of Qur. 1 sales in Qtr. 2 2nd Qtr-Cash sales 2nd Qtr - Credit sales, collection of tr. 2 sales in Qtr. 2 2nd Q -Credit sales, collection of tr. 2 sales in Qtr. 3 2nd Qtr.-Cash sales 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 4th Qtr.-Cash sales 4th Qtr-Credit sales, collection of Qtr. 4 sales in Qtr. 4 Total cash receipts from customers Accounts Receivable balance, December 31, 2019: 4th Qt-Credit sales, collection of tr. 4 sales in Qtr. 1 of 2020