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For the second quarter of the following year Cloaks Company has projected sales and production in units as follows: Sales 50.000.000 1.000 Production 54.000 49.000,00

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For the second quarter of the following year Cloaks Company has projected sales and production in units as follows: Sales 50.000.000 1.000 Production 54.000 49.000,00 Cash-related production costs are budgeted at S11 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. S115,000 per month will account for Selling and administrative expenses. On January 31 the accounts payable balance totals $215,000, which will be paid in February All units are sold on account for $16 cach. 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 20% in the second month following the month of sale. On January 1 accounts receivable totaled S650,000 (S130,000 from November's sales and the remaining from December). Required: 3. Prepare a schedule for each month showing budgeted cash disbursements for Cloaks Company (5 marks) 4. Prepare a schedule for each month showing budgeted cash receipts for Cloaks Company (5 marks) For the second quarter of the following year Cloaks Company has projected sales and production in units as follows: Sales 50.000.000 1.000 Production 54.000 49.000,00 Cash-related production costs are budgeted at S11 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. S115,000 per month will account for Selling and administrative expenses. On January 31 the accounts payable balance totals $215,000, which will be paid in February All units are sold on account for $16 cach. 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 20% in the second month following the month of sale. On January 1 accounts receivable totaled S650,000 (S130,000 from November's sales and the remaining from December). Required: 3. Prepare a schedule for each month showing budgeted cash disbursements for Cloaks Company (5 marks) 4. Prepare a schedule for each month showing budgeted cash receipts for Cloaks Company

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