Managerial Accounting

The following are Allegro Company's budgeted income statement for the next 2 quarters. Budgeted sales revenue for quarter 3 is $90,000, budgeted cost of goods sold for quarter 3 is (22,500), budgeted gross margin for quarter 3 is 67,500, budgeted selling and administrative expenses for quarter 3 is (36,000), and budgeted income from operations for quarter 3 is $31,500. Budgeted sales revenue for quarter 4 is $120,000, budgeted cost of goods sold for quarter 4 is ($30,000), Budgeted gross margin for quarter 4 is $90,000, budgeted selling and administrative expenses for quarter 4 is ($48,000), and budgeted income from operations for quarter 4 is $42,000. Allegro's budgeted sales revenue is collected are 35% of sales revenue are on cash basis and are collected immediately upon sales, the remainder of sales is on credit and collected one quarter after sales, cost of goods sold (manufacturing costs) consists of the material purchases represent 60% of cost of goods sold during the quarter, the company pays for 70% of materials during the quarter of purchase and the remaining 30% in the next quarter, the remaining 40% of cost of goods sold is made up of direct labour and manufacturing overhead including $1,200 in depreciation, all of the cash disbursements for direct labour and overhead are paid during the quarter incurred, selling and administrative expenses for each quarter are to be paid in the following quarter, and Quarter 3 ending cash balance is $26,000.

Calculate the cash collections budget for quarter 4 in terms of cash sales 35% of current quarter, cash collection for credit sales 65% of previous quarter sales, and total cash collection. Calculate the Cash disbursement expenses recorded for quarter 3 and quarter 4 in terms of budgeted cost of goods sold, raw material purchases 60% of COGS, direct labour and manufacturing overhead 40% of COGS, and budgeted selling and administrative expenses. Calculate the cash disbursement budget for quarter in terms of current Quarter (Quarter 4) raw materials paid in Quarter 4 70% of current quarter purchases, previous Quarter (Quarter 3) raw materials paid for in Quarter 4 30% of previous quarter purchases, direct labour and manufacturing overhead less $1,200 in depreciation, selling and administrative expenses for previous quarter (Quarter 3), and total cash disbursement. Calculate cash budget for quarter 4 in terms of beginning balance of cash, budgeted cash receipts, budgeted cash disbursements, and ending balance of cash.