Data Table ? ? ? Budgeted balances at January 31, 2021 are as follows: Cash Accounts receivable Inventory Property, plant, and equipment (net) Accounts payable Long-term liabilities Stockholders' equity $ 851,000 ? 179,000 ? Selected budgeted information for December 2020 follows: Cash balance, December 31, 2020 $ 11,000 Budgeted sales 1,670,000 Budgeted materials purchases 760,000 Customer invoices are payable within 30 days. From past experience, Snowmass's accountant projects 35% of invoices will be collected in the month invoiced, and 65% will be collected in the following month. Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with 40% of direct materials purchases paid during the month of the purchase, and 60% paid in the month following purchase. Fixed manufacturing overhead costs include $13,000 of depreciation costs and fixed operating (nonmanufacturing) overhead costs include $14,000 of depreciation costs. Direct manufacturing labor and the remaining manufacturing and operating (nonmanufacturing) overhead costs are paid monthly. All property, plant, and equipment acquired during January 2021 were purchased on credit and did not entail any outflow of cash. There were no borrowings or repayments with respect to long-term liabilities in January 2021. On December 15, 2020, Snowmass's board of directors voted to pay a $175,000 dividend to stockholders on January 31, 2021. Direct Manufacturing Labor Costs Budget For January 2021 Output Units DMLH Total Hourly Produced per Unit Hours Wage Rate 2,000 6 12,000 $ 26 Total $ 312,000 Snowboards - Total labor hours * Variable manufacturing overhead rate 12,000 10 Variable manufacturing overhead costs $ 120,000 Ending Inventories Budget For January 2021 Quantity Cost per unit Total Direct materials Wood Fiberglass 1,510 $ 31 $ 46,810 25,000 2,500 10 Finished goods Snowboard 700 $ 375,200 $ 536 $ $ 447,010 Total ending inventory Revenue Budget For January 2021 Units Selling price Total revenues 1,800 $ 550 $ 990,000 Snowboards Direct Materials Purchases Budget For January 2021 Materials Wood Fiberglass Total 16,000 b.f. 1,510 b.f. Physical Units Budget To be used in production Add target ending inventory Total requirement Deduct beginning inventory Purchases to be made Cost Budget 17,510 b.f. 12,000 yards 2,500 yards 14,500 yards 1,010 yards 13,490 yards 2,010 b.f. 15,500 b.f. $ 480,500 $ 134,900 $ 615,400 Purchases Requirement 1. Prepare a cash budget for January 2021. Show supporting schedules for the calculation of collection of receivables and payments of accounts payable, and for disbursements for fixed manufacturing and operating (nonmanufacturing) overhead. Begin by preparing the supporting schedule for the calculation of collection of receivables. Schedule of Cash Collections From December 2020 sales From January 2021 sales Total collections Requirements 1. 2. Prepare a cash budget for January 2021. Show supporting schedules for the calculation of collection of receivables and payments of accounts payable, and for disbursements for fixed manufacturing and operating (nonmanufacturing) overhead. Snowmass is interested in maintaining a minimum cash balance of $110,000 at the end of each month. Will Snowmass be in a position to pay the $175,000 dividend on January 31? Why do Snowmass's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? Prepare a budgeted balance sheet for January 31, 2021 by calculating the January 31, 2021 balances in (a) cash (b) accounts receivable (C) inventory (d) accounts payable and (e) plugging in the balance for stockholders' equity 3. 4. Data Table ? ? ? Budgeted balances at January 31, 2021 are as follows: Cash Accounts receivable Inventory Property, plant, and equipment (net) Accounts payable Long-term liabilities Stockholders' equity $ 851,000 ? 179,000 ? Selected budgeted information for December 2020 follows: Cash balance, December 31, 2020 $ 11,000 Budgeted sales 1,670,000 Budgeted materials purchases 760,000 Customer invoices are payable within 30 days. From past experience, Snowmass's accountant projects 35% of invoices will be collected in the month invoiced, and 65% will be collected in the following month. Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with 40% of direct materials purchases paid during the month of the purchase, and 60% paid in the month following purchase. Fixed manufacturing overhead costs include $13,000 of depreciation costs and fixed operating (nonmanufacturing) overhead costs include $14,000 of depreciation costs. Direct manufacturing labor and the remaining manufacturing and operating (nonmanufacturing) overhead costs are paid monthly. All property, plant, and equipment acquired during January 2021 were purchased on credit and did not entail any outflow of cash. There were no borrowings or repayments with respect to long-term liabilities in January 2021. On December 15, 2020, Snowmass's board of directors voted to pay a $175,000 dividend to stockholders on January 31, 2021