Hello can someone help me complete the cash budget? i cant figure it out as well as the income tax.
here is what i have
rrent Assets as of December 31 (prior year): Cash $ 4,500 Accounts receivable, net $ 47,000 $ 15,700 $120,000 Inventory operty, plant, and equipment, net ccounts payable capital stock etained earnings $ 42,400 $124,000 $ 23,100 a. Actual sales in December were $70,000. Selling price per unit is nor unit throughout the budget period. (110 $ 80,000 January February $ 92,000 $ 99,000 $ 97,000 March -- $ 85,000 April May inh and 70% credit. All credit sales are collected in the D 2 March Quarter 6 10 Combined Cash Budget For the Quarter Ended March 31 3 Month 4 January 5 Beginning cash balance February Plus: Cash collections 7 Total cash available 8 Less cash payments: 9 Direct material purchases Direct labor Manufacturing overhead costs Operating expenses 13 Tax payment 14 Equipment purchases 15 Total cash payments 16 Ending cash balance before financing 17 Financing 18 Plus: New borrowings Less: Debt repayments 19 Less: Interest payments 21 Ending cash balance 11 12 be 20 22 B c D WNW Budgeted Income Statement For the Quarter Ended March 31 3 4 Sales revenue 5 Less: Cost of goods sold* 6 Gross profit 7 Less: Operating expenses 8 Less: Depreciation expense 9 Operating income Less: Interest expense Less: Income tax expense Net income 10 11 12 13 Mar Quarter 4,500 250,700 255,200 FOR THE THREE MONTHS ENDING March 31 72 Jan Feb 73 Cash balance, beginning 4,500 74 Add collections from customers 73,000 75 Total cash available 77,500 76 77 Less cash payments 78 DM purchases 79 Direct labor 80 MOH costs 81 Operating Expenses 82 Tax Payment 83 Equipment purchases 84 Total Disbursements 85 86 Ending cash balance before financing 87 Financing: 88 Borrowings 89 Repayments (enter as a neg. number) 90 Interest payments (enter as a neg. number) 91 Total financing 92 93 Cash balance, ending 94 Martin Manufacturing BUDGETED INCOME STATEMENT FOR THE THREE MONTHS ENDED March 31 271,000 165,852 105,148 Sales Less COGS: Gross profit Less expenses: Operating Expenses 3 Depreciation Operating Income 5 Interest Expense 5 Income tax expense 7 Net income 30,100 4,600 70,448 B SALES BUDGET: Budgeted unit sales Selling price per unit Total Sales Jan 80,000 10 800,000 Feb 92,000 10 920,000 Mar 99,000 10 990,000 Quarter 271,000 10 2,710,000 SCHEDULE OF EXPECTED CASH COLLECTIONS: Jan Cash sales 24,000 Credit sales 49,000 Total Cash Collections 73,000 Feb 27,600 56,000 83,600 Mar 29,700 64,400 94,100 Quarter 81,300 169,400 250,700 PRODUCTION BUDGET: Budgeted unit sales Add desired ending inventory Total needs Less beginning inventory Units to produce Jan 8,000 2,300 10,300 2,000 8,300 Feb 9,200 2,475 11,675 2,300 9,375 Mar 9,900 2,425 12,325 2,475 9,850 Quarter 27.100 2,425 29,525 2.000 27,525 Apr 9,700 2 19,400 Units to be produced Multiply by: Quantity of DM needed per unit Quantity of DM needed for production Plus: Desired ending inventory of DM Total quantity of DM needed Less beginning inventory of DM Quantity of DM to purchase Multiply by: Cost per pound Total cost of DM purchases Jan 8,300 2 16,600 1,875 18,475 1,660 16,815 2 33,630 $ Feb 9,375 2 18,750 1,970 20,720 1,875 18,845 2 37,690 S Mar 9,850 2 19,700 1,880 21,580 1,970 19,610 2 39,220 $ Quarter 27,525 2 55,050 1,880 56,930 1,660 55,270 2 110,540 $ CASH PAYMENTS FOR DM PURCHASES: Feb Mar + Jan 6,726 42,400 Accounts payable Januray purchases February purchases March purchases Total cash payments 26,904 7,538 Quarter 42.400 33,630 37,690 7,844 121,564 30,152 7,844 37,996 49,126 34.442 CASH PAYMENTS FOR DIRECT LABOR: Jan 996 Feb 1.125 Mar 1,182 Quarter 3,303 Direct labor CASH RAYMENTS FOR MANUFACTURING OVERHEAD Bar Quar CASH PAYMENTS FOR MANUFACTURING OVERHEAD Jan Variable manufacturing overhead costs 9,960 Rent (fixed) 5,000 Other MOH (fixed) 3,000 Total cash payments 17,960 Feb 11,250 5,000 3,000 19,250 Mar 11,820 5,000 3,000 19,820 Quarter 33,030 15,000 9,000 57,030 CASH PAYMENTS FOR OPERATING EXPENSES Variable operating expenses Fixed operating expenses Total cash payments Jan 8,000 1,000 9,000 Feb 9,200 1,000 10,200 Mar 9,900 1,000 10,900 Quarter 27,100 3,000 30,100 Mar CASH BUDGET FOR THE THREE MONTHS ENDING March 31 Jan Feb Cash balance, beginning 4,500 Add collections from customers 73,000 Total cash available 77,500 Quarter 4,500 250,700 255,200 Less cash payments DM purchases Direct labor 105 96 BUDGETED MANUFACTURING COST PER UNIT 97 98 Direct materials cost per unit 4.00 99 Direct labor cost per unit 0.12 100 Variable manufacturing costs per unit 1.20 101 Fixed manufacturing overhead per unit 0.80 102 Cost of manufacturing each unit 6.12 103 104 Martin Manufacturing BUDGETED INCOME STATEMENT 106 FOR THE THREE MONTHS ENDED March 31 107 108 Sales 109 Less COGS: 110 Gross profit 11 Less expenses: 112 Operating Expenses 13 Depreciation 14 Operating Income 15 Interest Expense 16 Income tax expense 17 Net income 271,000 165,852 105,148 30,100 4,600 70,448 rrent Assets as of December 31 (prior year): Cash $ 4,500 Accounts receivable, net $ 47,000 $ 15,700 $120,000 Inventory operty, plant, and equipment, net ccounts payable capital stock etained earnings $ 42,400 $124,000 $ 23,100 a. Actual sales in December were $70,000. Selling price per unit is nor unit throughout the budget period. (110 $ 80,000 January February $ 92,000 $ 99,000 $ 97,000 March -- $ 85,000 April May inh and 70% credit. All credit sales are collected in the D 2 March Quarter 6 10 Combined Cash Budget For the Quarter Ended March 31 3 Month 4 January 5 Beginning cash balance February Plus: Cash collections 7 Total cash available 8 Less cash payments: 9 Direct material purchases Direct labor Manufacturing overhead costs Operating expenses 13 Tax payment 14 Equipment purchases 15 Total cash payments 16 Ending cash balance before financing 17 Financing 18 Plus: New borrowings Less: Debt repayments 19 Less: Interest payments 21 Ending cash balance 11 12 be 20 22 B c D WNW Budgeted Income Statement For the Quarter Ended March 31 3 4 Sales revenue 5 Less: Cost of goods sold* 6 Gross profit 7 Less: Operating expenses 8 Less: Depreciation expense 9 Operating income Less: Interest expense Less: Income tax expense Net income 10 11 12 13 Mar Quarter 4,500 250,700 255,200 FOR THE THREE MONTHS ENDING March 31 72 Jan Feb 73 Cash balance, beginning 4,500 74 Add collections from customers 73,000 75 Total cash available 77,500 76 77 Less cash payments 78 DM purchases 79 Direct labor 80 MOH costs 81 Operating Expenses 82 Tax Payment 83 Equipment purchases 84 Total Disbursements 85 86 Ending cash balance before financing 87 Financing: 88 Borrowings 89 Repayments (enter as a neg. number) 90 Interest payments (enter as a neg. number) 91 Total financing 92 93 Cash balance, ending 94 Martin Manufacturing BUDGETED INCOME STATEMENT FOR THE THREE MONTHS ENDED March 31 271,000 165,852 105,148 Sales Less COGS: Gross profit Less expenses: Operating Expenses 3 Depreciation Operating Income 5 Interest Expense 5 Income tax expense 7 Net income 30,100 4,600 70,448 B SALES BUDGET: Budgeted unit sales Selling price per unit Total Sales Jan 80,000 10 800,000 Feb 92,000 10 920,000 Mar 99,000 10 990,000 Quarter 271,000 10 2,710,000 SCHEDULE OF EXPECTED CASH COLLECTIONS: Jan Cash sales 24,000 Credit sales 49,000 Total Cash Collections 73,000 Feb 27,600 56,000 83,600 Mar 29,700 64,400 94,100 Quarter 81,300 169,400 250,700 PRODUCTION BUDGET: Budgeted unit sales Add desired ending inventory Total needs Less beginning inventory Units to produce Jan 8,000 2,300 10,300 2,000 8,300 Feb 9,200 2,475 11,675 2,300 9,375 Mar 9,900 2,425 12,325 2,475 9,850 Quarter 27.100 2,425 29,525 2.000 27,525 Apr 9,700 2 19,400 Units to be produced Multiply by: Quantity of DM needed per unit Quantity of DM needed for production Plus: Desired ending inventory of DM Total quantity of DM needed Less beginning inventory of DM Quantity of DM to purchase Multiply by: Cost per pound Total cost of DM purchases Jan 8,300 2 16,600 1,875 18,475 1,660 16,815 2 33,630 $ Feb 9,375 2 18,750 1,970 20,720 1,875 18,845 2 37,690 S Mar 9,850 2 19,700 1,880 21,580 1,970 19,610 2 39,220 $ Quarter 27,525 2 55,050 1,880 56,930 1,660 55,270 2 110,540 $ CASH PAYMENTS FOR DM PURCHASES: Feb Mar + Jan 6,726 42,400 Accounts payable Januray purchases February purchases March purchases Total cash payments 26,904 7,538 Quarter 42.400 33,630 37,690 7,844 121,564 30,152 7,844 37,996 49,126 34.442 CASH PAYMENTS FOR DIRECT LABOR: Jan 996 Feb 1.125 Mar 1,182 Quarter 3,303 Direct labor CASH RAYMENTS FOR MANUFACTURING OVERHEAD Bar Quar CASH PAYMENTS FOR MANUFACTURING OVERHEAD Jan Variable manufacturing overhead costs 9,960 Rent (fixed) 5,000 Other MOH (fixed) 3,000 Total cash payments 17,960 Feb 11,250 5,000 3,000 19,250 Mar 11,820 5,000 3,000 19,820 Quarter 33,030 15,000 9,000 57,030 CASH PAYMENTS FOR OPERATING EXPENSES Variable operating expenses Fixed operating expenses Total cash payments Jan 8,000 1,000 9,000 Feb 9,200 1,000 10,200 Mar 9,900 1,000 10,900 Quarter 27,100 3,000 30,100 Mar CASH BUDGET FOR THE THREE MONTHS ENDING March 31 Jan Feb Cash balance, beginning 4,500 Add collections from customers 73,000 Total cash available 77,500 Quarter 4,500 250,700 255,200 Less cash payments DM purchases Direct labor 105 96 BUDGETED MANUFACTURING COST PER UNIT 97 98 Direct materials cost per unit 4.00 99 Direct labor cost per unit 0.12 100 Variable manufacturing costs per unit 1.20 101 Fixed manufacturing overhead per unit 0.80 102 Cost of manufacturing each unit 6.12 103 104 Martin Manufacturing BUDGETED INCOME STATEMENT 106 FOR THE THREE MONTHS ENDED March 31 107 108 Sales 109 Less COGS: 110 Gross profit 11 Less expenses: 112 Operating Expenses 13 Depreciation 14 Operating Income 15 Interest Expense 16 Income tax expense 17 Net income 271,000 165,852 105,148 30,100 4,600 70,448
