Compute for the cost of goods sold 2) How much is the operating expenses budget 3)If the sales budget is based on a target gross margin of 62% sales, how much is the operating income budget? 4)From the same data, how much will the total cash payments be for the year 2022? 5)Cash balance by Dec. 31, 2021 is expected at $132,506, while the total cash receipts for 2022 at $1,534,298. Calculate the ending cash balance before financing 6) If the minimum cash balance is set at $100,000, will the Adzac Corp. need to borrow money for the year?

 

Adzac Corporation has the following budget data for the year 2022. Budget: Dec. 31, 2021 Ending Inventory Dec. 31, 2022 Ending Inventory Inventory Purchases Depreciation Expense Budget Gen. Administrative Expense Budget Selling Expense Budget Rent Expense Budget Salaries Expense Budget Insurance Expense Budget $ 78,000 64,500 825,000 84.000 92,550 125,000 150,000 218,000 53,450