It is December and you have just been hired as an accountant by the Sweetwater Candy Company operating in Fort Collins. Sweetwater is a boutique candy maker that produces only one specialty product: boxes of assorted chocolates that include a regional favorite using Colorado peaches for the filling. These chocolates have become favorites of locals and tourists. The Sweetwater Candy Company produces its chocoates at a small facility in Fort Collins Sweetwater sells each unit for $25 per box. (1 unit = 1 box of chocolates) You have been asked to get involved with the budget preparation for next year and to use the information to make decisions. The budget process is already underway, and the accounting team has worked with the sales and marketing team to develop the following sales budget for next year: $25.00 Selling price per unit Units Dollar Sales January 1,200 $30,000 February 1,000 $25,000 March 1,600 $40,000 April 1,400 $ 35,000 May 1,800 $ 45,000 June July 2,500 $ 62,500 3,500 $87,500 August 3,000 $75,000 September 2,700 $67,500 October November 2,000 $50,000 1,800 $ 45,000 December Total Annual Sales 2,500 $ 62,500 25,000 $625,000 Work through the worksheets in this Excel workbook to complete the required calculations and analyses. Provide explanations as instructed. The Sweetwater Candy Company is preparing its budget for next year and has asked you to prepare a cash budget for the first quarter (January-March) of next year. Selling price for a single box of chocolates: $25 per unit Budgeted total sales are: 40% cash sales 60% credit sales Credit sales are collected in cash as follows: 75% collected in the month following the sale 25% collected in the 2nd month following the sale At December 31, the balance in Accounts Receivable is $24,750, which represents the uncollected portions of the November and December sales. November total sales December total sales Budgeted sales for the next four months follow: 1000 units 1400 units Sales in units January 1,200 February March April 1,000 1,600 1,400 Raw materials (chocolate) purchases are paid in cash as follows: 40% paid in the month of purchase 60% paid in the month following purchase At December 31, the balance of Accounts Payable is $4,977, which represents the unpaid portion of December's raw materials (chocolate) purchases. The actual cost of raw materials in December was $8,295. HINT: You must pull the raw materials costs from the Production Budget. Direct labor and variable overhead costs are paid in the month applied. Fixed overhead includes $2,520 per month of depreciation on factory equipment. The remaining fixed overhead costs are paid evenly throughout the year. HINT: You must pull the direct labor and overhead costs from the Production Budget. The following operating expenses are paid in the month incurred: Shipping is 2% of sales. Sales commissions are 10% of sales. Office salaries are $3,000 per month. Office rent is $1,200 per month. In January, management plans to pay $10,000 of cash dividends to its shareholders. In March, management expects to sell equipment that originally cost $12,000 at a gain of $1,500. Accumulated depreciation on this equipment at the time of sale will be $7,000. The equipment will be sold for cash. A minimum cash balance of $10,000 is required. The cash balance at December 31 is $10,200. Loans are obtained at the end of a month in which a cash shortage occurs. Interest is 12% annually (or 1% per month), based on the loan balance at the beginning of the month, and must be paid each month. If an excess of cash exists, loan repayments are made at the end of the month. At December 31, the loan balance is $0. Required: (A.) Prepare the company's cash budget for each of the months of January, February, and March that includes information on the loan balance. (B.) Prepare supplemetary schedules for cash receipts from customers, cash disbursements for raw materials purchases, and cash disbursements for direct labor and overhead.