I need help answering problem 7-28 (at the bottom). All the previous problem information has been completed to help answer it.

Problem 7-26:

Requirement 1 Answers:

Requirement 2 Answers:

Problem 7-27:

Answers:

Problem 7-28 (All information above is used to answer the problem.):

Thank you in advance!

-M:7-26 Preparing a financial budget-schedule of cash receipts, sensitivity analysis Marcel Company projects the following sales for the first three months of the year: $11,200 in January; $12,300 in February; and $11,100 in March. The company expects 60% of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January 1. Round to the nearest dollar. Requirements 1. Prepare a schedule of cash receipts for Marcel for January, February, and March. What is the balance in Accounts Receivable on March 31? 2. Prepare a revised schedule of cash receipts if receipts from sales on account are 60% in the month of the sale, 30% in the month following the sale, and 10% in the second month following the sale. What is the balance in Accounts Receivable on March 31? January: - Total sales in January: $11,200 - 60% of sales are cash: $11,2000.60=$6,720 - 40\% of sales are on account: $11,2000.40=$4,480 - 60\% of accounts on account collected in January: $4,4800.60=$2,688 - Balance in Accounts Receivable at the end of January: $4,480$2,688=$1,792 February: - Total sales in February: \$12,300 - 60% of sales are cash: $12,3000.60=$7,380 - 40\% of sales are on account: $12,3000.40=$4,920 - 30\% of accounts on account collected in February: $4,9200.30=$1,476 - Balance in Accounts Receivable at the end of February: $1,792 (Ja / ary) +$4,920$1,476=$5,236 March: - Total sales in March: $11,100 - 60% of sales are cash: $11,1000.60=$6,660 - 40% of sales are on account: $11,1000.40=$4,440 - 10\% of accounts on account collected in March: $4,4400.10=$444 - Balance in Accounts Receivable at the end of March: $5,236 (February) +$4,440$444=$9,232 January: - Total sales in January: $11,200 - 60% of sales are cash: $11,2000.60=$6,720 - 40\% of sales are on account: $11,2000.40=$4,480 - 50\% of accounts on account collected in January: $4,4800.50=$2,240 - Balance in Accounts Receivable at the end of January: $4,480$2,240=$2,240 February: - Total sales in February: $12,300 - 60% of sales are cash: $12,3000.60=$7,380 - 40% of sales are on account: $12,3000.40=$4,920 - 50% of accounts on account collected in February: $4,9200.50=$2,460 - Balance in Accounts Receivable at the end of February: $2,240(Jaary)+$4,920$2,460=$4,700 March: - Total sales in March: $11,100 60% of sales are cash: $11,1000.60=$6,660 - 40% of sales are on account: $11,1000.40=$4,440 - 50% of accounts on account collected in March :$4,4400.50=$2,220 - Balance in Accounts Receivable at the end of March: $4,700 (February) +$4,440$2,220=$6,920 Now, let's determne the balances of Prepaid Property laxes, Accounts Payable, and Utilities Payable as of March 31: 1. Prepaid Property Taxes: - January: \$200 (prepaid) - February: $0 (no cash payment) - March: \$0 (no cash payment) As of March 31, the balance in Prepaid Property Taxes is $200. 2. Accounts Payable: - January: $3,100 (direct materials purchases) - February: $0 (no cash payment) - March: \$0 (no cash payment) As of March 31, the balance in Accounts Payable is $3,100. 3. Utilities Payable: - January: \$0 (no cash payment) - February: $650 (utilities for the plant) - March: \$250 (utilities for the office) As of March 31, the balance in Utilities Payable is $900. To prepare a schedule of cash payments, we need to account for the timing of payments for each expense. We'll calculate cash payments for each category separately. A. Direct Materials Purchases: - January: $3,100 (paid in the month incurred) - February: $3,500 (paid in the month following the purchase, so this amount is paid in March) - March: $4,800 (paid in the month following the purchase, so this amount is paid in April) B. Direct Labor Costs: - January: $3,300 (paid in the month incurred) - February: $3,500 (paid in the month incurred) - March: $3,600 (paid in the month incurred) C. Depreciation on Plant: - January: $550 (no cash payment, depreciation is a non-cash expense) - February: $550 (no cash payment) - March: \$550 (no cash payment) D. Utilities for Plant: - January: $650 (paid in the month after incurred, so this is for December's utilities) - February: $650 (paid in the month incurred) - March: $650 (paid in the month incurred) E. Property Taxes on Plant: - January: $200 (prepaid for the year on January 2) - February: \$0 (no cash payment, already prepaid) - March: \$0 (no cash payment) F. Depreciation on Office: - January: $550 (no cash payment) - February: $550 (no cash payment) - March: \$550 (no cash payment) G. Utilities for Office: - January: \$0 (no cash payment, this expense is not listed for January) - February: $250 (paid in the month after incurred, so this is for January's utilities) - March: \$250 (paid in the month incurred) H. Property Taxes on Office: - January: $170 (prepaid for the year on January 2) - February: \$0 (no cash payment, already prepaid) - March: \$0 (no cash payment) I. Office Salaries: - January: $3,500 (paid in the month incurred) - February: $3,500 (paid in the month incurred) - March: $3,500 (paid in the month incurred) As of March 31, Marcel Company has the following balances: These balances represent the financial position of Marcel Company at the end of March. -M:7-27 Preparing a financial budget-schedule of cash payments Marcel Company has the following projected costs for manufacturing and selling and administrative expenses: All costs are paid in month incurred except: direct materials, which are paid in the month following the purchase; utilities, which are paid in the month after incurred; and property taxes, which are prepaid for the year on January 2. The Accounts Payable and Utilities Payable accounts have a zero balance on January 1. Prepare a schedule of cash payments for Marcel for January, February, and March. Determine the balances in Prepaid Property Taxes, Accounts Payable, and Utilities Payable as of March 31. Master E-M:7-26 and E-M:7-27 must be completed before attempting Exercise 11:7-28 Preparing the financial budget - cash budget Ise the original schedule of cash receipts completed in Exercise E-M:7-26, Requirement 1, and the schedule of cash payments completed in Exercise E-M:7-27 to complete a cash budget for Marcel Company for January, February, and March. Additional information: Marcel's beginning cash balance is $5,000, and Marcel desires to maintain a minimum ending cash balance of $5,000. Marcel borrows cash as needed at the beginning of each month in increments of $1,000 and repays the amounts borrowed in increments of $1,000 at the beginning of months when excess cash is available. The interest rate on amounts borrowed is 8% per year. Interest is paid at the beginning of the month on the outstanding balance from the previous month