I need A and B

PART TWO Cash flow and Financing Luis and Carlos believe that there is a need for better forecasting regarding the company's cash inflows and outflows. After a series of questions and answers with the Ruizes, you determined that (1) the company has not prepared a cash budget for several quarters and (2) is not up to date on its payables and receivables. You are going to prepare a forecasted income statement and a forecasted cash budget for the fourth quarter. Pertinent information needed has been collected and is outlined below. Pertinent Information: The business manager/accountant and Luis provided projections pertaining to the 1" quarter (January through March 2020) and other information outlined below: 1. Total sales 1" quarter 2020: 8,100 Generators; Sales price is $300/generator 2. Total Sales for the 2 quarter 2020 are projected to increase 5% above the 1st quarter total sales due to an aggressive marketing program that began March 1, 2020. Total quarter sales per month are expected to be realized as follows: 25% in April, 35% in May, and 40% in June. The sales budgets expressed in sales dollars and expressed in the number of generators sold are as follows: April May June TOTAL QTR PROJECTED SALES REVENUE SALES $637,875 $893,025 $1,020.600 $2.551.500 SALES: PRICE X QUANTITY $637875 $893,025 $1,020,600 $2.551.500 Number of Generators Sold April May June TOTAL QTR Number of Generators Sold 2126 2.977 3,402 8.505 3. Monthly Sales are classified as follows and realized in corresponding percentage: a. Cash sales 25% of total sales b. Credit sales.. .75% of total sales 4. Monthly credit sales are collected as follows and in the corresponding proportion a. Collected in the month of the sale, 37% b. Collected one month after the sale month, 38% C. Collected the second month after the sale month, 25% 5. Cost Classifications based on 19 quarter Information: Costs Variable Costs Fixed Costs Raw Materials used in Manufacturing (See corrected COGS Schedule in Part 1, Required #1) $ ? $ 180,000 Actual Costs on 3 Quarter Income Statement Direct Labor 570.000 Factory Overhead: Rent-Factory Indirect Labor 99,000 Insurance Factory (70%) Utility-Factory (60%) 34,200 Depreciation-factory building 39,900 9,000 91,000 General Administrative Advertising expense Selling & Administrative Wages and Salaries Utility-Selling & Administrative (40%) Insurance-Administrative (30%) Depreciation Administrative 90,000 25,200 270,000 135,000 3,600 17.100 135,000 6. All factory overhead and administrative expenses (except depreciation) are paid in cash in the month the cost is incurred. 7. Direct labor is paid at the end of the month 8. Raw material purchases are paid as follows: 50% in the month of the purchase, 30% the month after the purchase, and 20% in the second month following the purchase. The raw materials budget is as follows: April May June TOTAL QTR PROJECTED RAW MATERIAL PURCHASES $795.900 NEEDED FOR SALES DESIRED ENDING LESS: BEGINNING PURCHASES $198,975 49,744 (106,000) $142.719 $278,565 69,641 (49.744) $298.463 $318,360 79,590 (69,641) $328, 309 $769.490 9. Additional monthly obligation paid in cash include: a. Property taxes, due April 27 $3,500 b. Employee payroll taxes due June 150 $8.000, 5 You have determined that you are going to provide the following information to Luis and Carlos a. Compute the unit cost of goods sold using 1" quarter information and the corrected cost of goods sold statement you prepared in Part One. b. Prepare a projected traditional multi-step income statement for the 20 quarter using Information in "a" above and the 1" quarter information on the table in "S" above (see the previous page). For proper formatting, see Exhibit 1 at the end of this document. C d. A schedule of collections from credit sales for each month of the 2 quarter 2020. Previous months' credit sales are: February 2020 credit sales, $2,225,000 March 2020 credit sales. $2,025,000 e. A schedule of payment for raw materials for each month of the 2nd quarter 2020. Previous months' credit on account) purchases: February 2020 purchases on account. $935,700 March 2020 purchases on account. $842,130 t. A forecasted cash budget for (a) the total 2 quarter and (b) for each month in the 2 quarter based on the information provided above. The beginning cash balance on April 1, 2020 is $1,296,500 Additional presentation requirements: 1. Prepare a formal report for the Bulzes that presents the requirement in Part one and Part two You should use ONLY Microsoft WORD and EXCEL. Do not submit any pdf files. 2. Be sure the report is ORGANIZED. That is, be sure the report is clearly presently and EASY for the Buizes to ready and understand. 3. You can have a separate WORD file for narrative le, discussion and small tables) and a separate EXCEL file for large tables, schedules, statement, ete. Be sure that all tables, schedules, statements, etc, are clearly identified lep, name and/or number) and adequately referenced in the WORD file and letter when/of discussed. 4. Your report should have a cover page. 5. A brief letter indicating what is being submitted should accompany the report. The letter SHOULD NOT BE A PART OF THE REPORT. In the WORD document, put a blank page between the letter and the report 6. You have the option to work with one business associate (classmate). Together you should provide Luis and Carlos with a high-quality report and recommendations 6 7. You indicated to Luis and Carlos that the report will be submitted by Friday, May 1, 2021, at the end of the day, 11:59 p.m. APPENDIX EXHIBIT #1: Sales Cost of Goods Sold Gross Profit Selling and Administrative: Advertising Selling/Admin. Salaries Utility Adm Insurance Depreciation-Admin Total Sell/Admin Expenses Net Income (Loss) PART TWO Cash flow and Financing Luis and Carlos believe that there is a need for better forecasting regarding the company's cash inflows and outflows. After a series of questions and answers with the Ruizes, you determined that (1) the company has not prepared a cash budget for several quarters and (2) is not up to date on its payables and receivables. You are going to prepare a forecasted income statement and a forecasted cash budget for the fourth quarter. Pertinent information needed has been collected and is outlined below. Pertinent Information: The business manager/accountant and Luis provided projections pertaining to the 1" quarter (January through March 2020) and other information outlined below: 1. Total sales 1" quarter 2020: 8,100 Generators; Sales price is $300/generator 2. Total Sales for the 2 quarter 2020 are projected to increase 5% above the 1st quarter total sales due to an aggressive marketing program that began March 1, 2020. Total quarter sales per month are expected to be realized as follows: 25% in April, 35% in May, and 40% in June. The sales budgets expressed in sales dollars and expressed in the number of generators sold are as follows: April May June TOTAL QTR PROJECTED SALES REVENUE SALES $637,875 $893,025 $1,020.600 $2.551.500 SALES: PRICE X QUANTITY $637875 $893,025 $1,020,600 $2.551.500 Number of Generators Sold April May June TOTAL QTR Number of Generators Sold 2126 2.977 3,402 8.505 3. Monthly Sales are classified as follows and realized in corresponding percentage: a. Cash sales 25% of total sales b. Credit sales.. .75% of total sales 4. Monthly credit sales are collected as follows and in the corresponding proportion a. Collected in the month of the sale, 37% b. Collected one month after the sale month, 38% C. Collected the second month after the sale month, 25% 5. Cost Classifications based on 19 quarter Information: Costs Variable Costs Fixed Costs Raw Materials used in Manufacturing (See corrected COGS Schedule in Part 1, Required #1) $ ? $ 180,000 Actual Costs on 3 Quarter Income Statement Direct Labor 570.000 Factory Overhead: Rent-Factory Indirect Labor 99,000 Insurance Factory (70%) Utility-Factory (60%) 34,200 Depreciation-factory building 39,900 9,000 91,000 General Administrative Advertising expense Selling & Administrative Wages and Salaries Utility-Selling & Administrative (40%) Insurance-Administrative (30%) Depreciation Administrative 90,000 25,200 270,000 135,000 3,600 17.100 135,000 6. All factory overhead and administrative expenses (except depreciation) are paid in cash in the month the cost is incurred. 7. Direct labor is paid at the end of the month 8. Raw material purchases are paid as follows: 50% in the month of the purchase, 30% the month after the purchase, and 20% in the second month following the purchase. The raw materials budget is as follows: April May June TOTAL QTR PROJECTED RAW MATERIAL PURCHASES $795.900 NEEDED FOR SALES DESIRED ENDING LESS: BEGINNING PURCHASES $198,975 49,744 (106,000) $142.719 $278,565 69,641 (49.744) $298.463 $318,360 79,590 (69,641) $328, 309 $769.490 9. Additional monthly obligation paid in cash include: a. Property taxes, due April 27 $3,500 b. Employee payroll taxes due June 150 $8.000, 5 You have determined that you are going to provide the following information to Luis and Carlos a. Compute the unit cost of goods sold using 1" quarter information and the corrected cost of goods sold statement you prepared in Part One. b. Prepare a projected traditional multi-step income statement for the 20 quarter using Information in "a" above and the 1" quarter information on the table in "S" above (see the previous page). For proper formatting, see Exhibit 1 at the end of this document. C d. A schedule of collections from credit sales for each month of the 2 quarter 2020. Previous months' credit sales are: February 2020 credit sales, $2,225,000 March 2020 credit sales. $2,025,000 e. A schedule of payment for raw materials for each month of the 2nd quarter 2020. Previous months' credit on account) purchases: February 2020 purchases on account. $935,700 March 2020 purchases on account. $842,130 t. A forecasted cash budget for (a) the total 2 quarter and (b) for each month in the 2 quarter based on the information provided above. The beginning cash balance on April 1, 2020 is $1,296,500 Additional presentation requirements: 1. Prepare a formal report for the Bulzes that presents the requirement in Part one and Part two You should use ONLY Microsoft WORD and EXCEL. Do not submit any pdf files. 2. Be sure the report is ORGANIZED. That is, be sure the report is clearly presently and EASY for the Buizes to ready and understand. 3. You can have a separate WORD file for narrative le, discussion and small tables) and a separate EXCEL file for large tables, schedules, statement, ete. Be sure that all tables, schedules, statements, etc, are clearly identified lep, name and/or number) and adequately referenced in the WORD file and letter when/of discussed. 4. Your report should have a cover page. 5. A brief letter indicating what is being submitted should accompany the report. The letter SHOULD NOT BE A PART OF THE REPORT. In the WORD document, put a blank page between the letter and the report 6. You have the option to work with one business associate (classmate). Together you should provide Luis and Carlos with a high-quality report and recommendations 6 7. You indicated to Luis and Carlos that the report will be submitted by Friday, May 1, 2021, at the end of the day, 11:59 p.m. APPENDIX EXHIBIT #1: Sales Cost of Goods Sold Gross Profit Selling and Administrative: Advertising Selling/Admin. Salaries Utility Adm Insurance Depreciation-Admin Total Sell/Admin Expenses Net Income (Loss)