i reposted this question as some of it was cut off.
i need help with 6 and 7. sales and administrative budget and cash budget.
Thank you!
Fair Trade manufactures industrial dye. The company is preparing is 2022 master budget and has presented you with the following information. 3. The December 31,2021 balance sheet for the company follows: b. The Accounts Receivable balance at 12/31/21 represents the remaining balances of November and December credit sales. Sales were $70,000 and $65,000, respectively for those two months. c. Estimated sales in gallons of dye for January through May 2022 follow: b. The Accounts Receivable balance at 12/31/21 represents the remaining balances of November and December credit sales. Sales were $70,000 and $65,000, respectively for those two months. c. Estimated sales in gallons of dye for January through May 2022 follow: Each gallon of dye sells for $12.00. d. The collection pattern for accounts receivable is as follows: 70 percent in the month of sale, 20 percent in the first month after the sale, and 10 percent in the second month after the sale. The company expects no bad debts and gives no cash discounts. e. Each gallon of dye has the following standard quantities and costs for direct material and direct labor: 1.2 gallons of direct material (some evaporation occurs during processing) $.80 per gallon $0.96 0.5 hours of direct labor X$6 per hour $3.00 K. The note payable has a 12 percent annual interest rate, interest is paid at the end of each month. The principal of the note is repaid as cash is available to do so. In January, $10,300 of principal will be repaid on the loan and the balance will be repaid in February. (Hint: Monthly interest expense = PXRXT. Remember to convert your interest rate to a monthly rate when calculating the expense). 1. The company's management has a set minimum cash balance of $5,000. Interest on any borrowings is expected to be 10 percent per year. m. The ending Finished Goods inventory should include 5 percent of the next month's needs. This is not true at the beginning of 2022 due to a miscalculation in sales for December. The ending inventory of raw materials should also be 5 percent of the next month's needs. n. Selling and administrative costs per month are as follows: salaries, $18,000, rent, $7,000, and utilities $800. These costs are all fixed; there is no variable portion. o. The company's tax rate is 35 percent. Because taxes are paid in the following calendar year, you will need to record income tax expense and income tax payable for the quarter ending March 31 (to be reflected in the budgeted is and budgeted BS). Prepare a master budget for each month of the first quarter of 2022 and a budgeted income statement and balance sheet for the period January 1st- March 31 st 2022. Schedule 1: Sales budget Schedule 1: Accounts receivable collections Schedule 2: Production budget Schedule 3: Direct materials purchases budget Schedule 3: Payment of accounts payable budget Schedule 4: Direct labor budget Schedule 5: Variable manufacturing overhead budget Schedule 5: Fixed manufacturing overhead budget Schedule 6: Sales \& administrative expense budget Schedule 7; Cash budget Schedule 8: Cost of goods manufactured Schedule 9: Income statement Schedule 10: Balance sheet Presentation - professional looking and easy to follow