idk what u need but hopefuly these two pictures help !
Budgeted Item: August September October November December Sales $300,000 $360,000 $420,000 $480,000 $390,000 Direct Material Purchases $87,200 $103,200 $117,400 $117,920 $101,120 Direct Labor Costs $ 106,000 $126,000 $146,000 $151,000 $127,000 Overhead Costs $84,800 $92,800 $100,800 $102,800 $93,200 Selling and Admin Costs $31,500 $33,500 $35,500 $37,500 $34,500 All sales are on account. All direct material purchases are on account. All costs besides direct material purchases are made as incurred. The overhead costs include $5,000 of monthly depreciation and the selling and administrative costs include $2,000 of monthly depreciation. In November, Coolidge must make a $10,000 installment payment on a note payable and must pay $7,500 of cash dividends to preferred shareholders in December. The projected beginning balance of cash on October 1 is $5,000. Coolidge would like to maintain a minimum $5,000 cash balance. Part C 1. Prepare a cash budget for October, November and December in Workpaper #5 (23 pts). 2. Based on the results of your budget, give one suggested change to the cash budget for each month (1 pt each). October: November: December: Workpaper #5 1. CASH BUDGET October November December 5 U 7 3 9 0 1 -2 -3 14 45 16 47 40 Requirement 1: SCHEDULE OF CASH PAYMENTS FOR DIRECT MATERIAL PURCHASES August September October November December 78480 92880 105660 106128 91008 Cash Payments: 90% month of purchase 10% - 1 month after purchase Total Cash Payments for DM 0 8720 10320 11740 11792 78480 101600 115980 117868 102800 Accounts Payable Balance at the end of December = 91008*10% = $ 9101 Schedule of Cash Collection from Sales August September October November December Cash collection of credit sales 60%: month of sale $180,000 $216,000 $180,000 $216,000 $252,000 $288,000 $234,000 30%: 1 month after 0 90,000 108,000 126,000 144,000 sale 10%: 2 months after 0 0 30,000 36,000 42,000 sale Total collection of $180,000 $ 306,000 $390,000 $450,000 $ 420,000 credit sales 2. Accounts receivable balance at the end of December : $ 204,000 From November sales: $ 480,000 x 10 % = $ 48,000 From December sales = $ 390,000 x 40 % = $ 156,000 Total accounts receivable at the end of December = $ 48,000 + $ 156,000 = $ 204,000
