Question
For the first quarter of the following year Ronaldo Company has projected sales and production in units as follows: Jan Feb Mar Sales 38,000 41,000
For the first quarter of the following year Ronaldo Company has projected sales and production in units as follows: Jan Feb Mar Sales 38,000 41,000 45,000 Production 50,000 48,000 46,000 Cash-related production costs are budgeted at $8 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the next month. $80,000 per month will account for Selling and administrative expenses. On January 31, the accounts payable balance totals $150,000, which will be paid in February. All units are sold on account for $15 each. Cash collections from sales are budgeted at 60% in the month of sale, 20% in the month following the month of sale, and the remaining 15% in the second month following the month of sale. On January 1 accounts receivable totaled $0. Submission Instructions: Prepare a schedule for each month showing budgeted cash disbursements for Ronaldo Company. Prepare a schedule for each month showing budgeted cash receipts for Ronaldo Company.
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