E9-12B Samuels Company has accumulated the following budget data for the year 2017. 1. Sales: 34,000 units, unit selling price $75. 2. Cost of one unit of finished goods: Direct materials 2 pounds at $5 per pound, direct labor 3 hours at $12 per hour, and manufacturing overhead $6 per direct labor hour. 3. Inventories (raw materials only): Beginning, 10,000 pounds; ending, 15,000 pounds. 4. Raw materials cost: $5 per pound. 5. Selling and administrative expenses: $223,000. 6. Income taxes: 40% of income before income taxes. Instructions (a) Prepare a schedule showing the computation of cost of goods sold for 2017. (b) Prepare a budgeted income statement for 2017

E9-15B The controller of Adams Company wants to improve the companys control system by preparing a month-by-month cash budget. The following information is for the month ending July 31, 2017. June 30, 2017 cash balance $55,000 Dividends to be declared on July 15* 12,000 Cash expenditures to be paid in July for operating expenses 36,800 Amortization expense in July 4,500 Cash collections to be received in July 90,000 Merchandise purchases to be paid in cash in July 71,300 Equipment to be purchased for cash in July 20,500 *Dividends are payable 30 days after declaration to shareholders of record on the declaration date. Adams Company wants to keep a minimum cash balance of $30,000. Instructions (a) Prepare a cash budget for the month ended July 31, 2017, and indicate how much money, if any, Adams Company will need to borrow to meet its minimum cash requirement. (b) Explain how cash budgeting can reduce the cost of short-term borrowing.