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Health & Wellness Consultants Health & Wellness Consultants produces and sells Sculp Max, a weight loss product for men and women. The company has been

Health & Wellness Consultants Health & Wellness Consultants produces and sells Sculp Max, a weight loss product for men and women. The company has been profitable for over five (5) years. Its main customers are fitness enthusiasts and persons with non-communicable diseases such as diabetes and hypertension. The company has a long-term plan that it breaks down into annual budgets.The company's projected cash balance is $750,000 on January 1,2025. If the entity needs to borrow money, it should be repaid in four equal instalments on the last day of each quarter. The interest rate will be 15%, and interest payments will also be quarterly (calculated using simple interest).Each finished product requires 141b material. Other raw materials are insignificant in cost and are treated as indirect materials. The following projections for 2025 are made available:1. Sales for December 2024 are projected to be 45,000 units. The marketing and sales manager anticipates that sales will increase by 500 units each month, commencing in January 2025, and this trend is expected to continue for the next two (2) years.2. The companys sales policy indicates that 60% of all sales are on credit, with the remainder in cash. The companys collection experience shows: 50% collected in the month of sales 20% collected in the month following sales 28% collected two months following the salesThe remaining 2% is deemed uncolectable.3. The product sells for $550 per unit, which is expected to remain constant until December 2025.4. Health and Wellness Consultants want to keep enough finished goods inventory on hand to meet 25% of the next months sales. On December 31,2024, closing inventory stood at 9,100 units.Regarding raw materials, the company has a policy to keep 30% of all material inventory to meet the next months production needs. The closing inventory of raw materials for December 31,2024, was 11,600 lbs.5. All direct-material purchases are made on credit, and 60% of each months purchases are paid for during the month of purchase. The other 40% will be paid next month.6. Indirect materials are purchased with cash as needed. Work-in-process is insignificant. 7. Projected manufacturing costs in 2025 are as follows: Direct material 0.25 lbs per unit @ $300 per pound Direct labour 0.20 hrs per unit @ $425 per hour Production overhead is $75 per direct labour hour Total production cost per unit $175 Budgeting Project Summer 2024Page 2 of 48. The following information relates to manufacturing overheads: Manufacturing overhead is expected to be $1,000,000 per month up to June 2025 Commencing July 2025, manufacturing overheads are expected to increase by 10% forthe rest of the year.9. Selling expenses are estimated using the high-low method based on monthly sales figures. You are provided with total selling expenses for the previous 5 months as shown below:December November October September August40,000 units $380,00035,000 units $355,00030,000 units $330,00025,000 units $305,00042,000 units $390,00010. Administrative expenses are estimated using the least squares method based on direct labour hours. The administrative expenses include monthly depreciation charges of $45,000. The following are past data on total administrative costs and the associated direct labour hours: PERIODDIRECT LABOUR HOURSTOTAL ADMINISTRATIVE COST18,000$197,00027,000$194,250312,000$208,00046,000$191,50059,400$200,85069,000$199,75077,600$195,90011. Health and Wellness Consultants has the following expenditure planned during the year: March 2025 July 2025 September 2025 December 2025Purchase of gym equipment Purchase of new computers Insurance payments Licensing & Permits$1,750,000 $275,000 $750,000 $550,000
Prepare the Cash Budget and provide the supporting schedules for cash collected from customers and disbursements to suppliers.

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