Could someone help with D?
d. A schedule of payment for raw materials for each month of the 4" quarter. Previous months' credit (on account) purchases are: November 2020 purchases on account, $56,560 December 2020 purchases on account, $52,800 PART TWO: Cash flow and Financing Eric and Heather agree that there also is a need for better forecasting regarding the company's cash inflows and outflows. After a series of questions, you determined that (1) the company had not prepared a cash budget for several quarters and (2) is not up to date on its payables and receivables. You are going to prepare a forecasted income statement and a forecasted cash budget for the fourth quarter. Pertinent information needed has been collected and is outlined below. Pertinent Information: The business manager/accountant and Heather provided projections for the 1" quarter 2021 (January through March 2021) and other information outlined below: 1. Total sales 4th quarter 2020: 58,500 10-oz bottles; Sales price is $8/bottle 2. Total Sales for the 1st quarter 2021 are projected to increase 5% above the 4th quarter 2020 total sales due to an aggressive marketing program that began December 1, 2020. Total quarter sales per month are expected to be realized as follows: 40% in Januay, 35% in February, and 25% in March. The sales budgets expressed in sales dollars and in the number the number of bottles sold are as follows: Oct PROJECTED SALES REVENUE Nov Dec TOTAL QTR SALES $126,945 $177,723 $203,112 $507,780 SALES: PRICE X QUANTITY $126,945 $177,723 $203,112 $507,780 Number of Bottles Sold Oct NOV Dec TOTAL QTR Number of Bottles Sold 15,356 21,499 24,570 61,425 3. Monthly Sales are classified as follows and realized in corresponding percentage: a. Cash sales.. 30% of total sales b. Credit sales.. 70% of total sales 4. Monthly credit sales are collected as follows and in the corresponding proportion: a. Collected in the month of the sale, 50% b. Collected one month after the sale month, 30% c. Collected the second month after the sale month, 20% 5. Cost Classifications based on 4th quarter information: Costs Fixed Costs Variable Costs Raw Materials used in Manufacturing (See corrected COGS Schedule in Part 1, Required #1) $ ? $ 36,000 Actual Costs on 4th Quarter Income Statement Direct Labor 114,000 Factory Overhead: Rent-Factory Indirect Labor 16,800 Insurance - Factory (66 2/3%) Utility-Factory (75%) 5,400 Depreciation-factory building 3,630 1,800 18,200 General Administrative Advertising expense Selling & Administrative Wages and Salaries Utility-Selling & Administrative (25%) Insurance-Administrative (33 1/3%) Depreciation-Administrative 18,000 1,680 64,000 67,000 720 2,970 27,000 All factory overhead and administrative expenses (except depreciation) are paid in cash in the month the cost is incurred. 7. Direct labor is paid at the end of the month 8. Raw material purchases are paid as follows: 50% in the month of the purchase, 30% the month after the purchase, and 20% in the second month following the purchase. The raw materials budget is as follows: Oct Nov Dec TOTAL QTR PROJECTED RAW MATERIAL PURCHASES $138,012 NEEDED FOR SALES DESIRED ENDING LESS: BEGINNING PURCHASES $34,503 8,626 (40,800) $2,329 $48,304 12,076 (8,626) $51,755 $55,205 13,801 (12,076) $56,930 $111,013 9. Additional monthly obligation paid in cash include: a. Property taxes, due February 27, 2021: $2,790 b. Employee payroll taxes due March 15, 2021: $900
