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Milo Company manufactures beach umbrellas. The company is preparing detalled budgets for the third quarter and has assembled the following information to assist in the

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Milo Company manufactures beach umbrellas. The company is preparing detalled budgets for the third quarter and has assembled the following information to assist in the budget preparation: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units): The selling price of the beach umbrellas is $15 per unit. b. All sales are on account. Based on past experience, sales are collected in the following pattern: 30 in the noach of sale 65 in the month folloving sale 5 t uncollectible Sales for June totaled $555,000 c. The company maintains finished goods inventories equal to 15% of the following month's sales. This requirement will be met at the end of June. d. Each beach umbrella requires 4 feet of Giden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month's production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be: June -30 Saptenber 30 92,700teet?teet e. Gilden costs $0.80 per foot. One half of a month's purchases of Giden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Giden during June will be $66,920. e. Giden costs $0.80 per foot. One-half of a month's purchases of Gilden is paid for in the month of purchase; the remainder is paic for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $66.920. Required: 1. Calculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collections, by month and in total, for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July. August, September, and October. 4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter. 6. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter. Complete this question by entering your answers in the tabs below. Calculate the estimated sales, by month and in total, for the third quarter. Required: 1. Calculate the estimated sales, by month and in total, for the third quarter 2. Calculate the expected cash collections, by month and in total, for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced in July. August, September, and October. 4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter: 5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter. 6. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter. Complete this question by entering your answers in the tabs below. Calculate the expected cash collections, by month and in total, for the third quarter. Required: 1. Calculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collections, by month and in total, for the third quarter. 3. Caiculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October. 4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter. 6. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. 4. Caiculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter. Complete this question by entering your answers in the tabs below. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter: Westex Products is a wholesale distributor of industrial cleaning products. When the treasurer of Westex Products approached the company's bank late in the current year seeking short-term financing, he was told that money was very tight and that any borrowing over the next year would have to be supported by a detailed statement of cash collections and disbursements. The treasurer also was told that it would be very helpful to the bank if borrowers would indicate the quarters in which they would be needing funds, as well as the amounts that would be needed, and the quarters in which repayments could be made. Because the treasurer is unsure as to the particular quarters in which bank financing will be needed, he has assembled the following information to assist in preparing a detalied cash budget: a. Budgeted sales and merchandise purchases for next year, as well as actual sales and purchases for the last quarter of the current year, are: b. All sales are on account. The company normally collects 65% of a quarter's sales before the quarter ends and another I3\% in the following quarter. The remainder is uncollectible. This pattern of collections is now being experienced in the current year's fourth. quarter actual dato. c. Elghty percent of a quarter's merchandise purchases are poid for within the quarter. The remainder is paid for in the following quarter. d. Selling and administrative expenses for next year are budgeted at $50,000 per quarter plus 15% of sales. Of the fixed amount, $20,000 each quarter is depreciation. e. The company will pay $10,000 in dividends each quarter. f. Land purchases of $75,000 will be made in the second quarter, and purchases of $48,000 will be made in the third quarter. These purchases will be for cash. a The Cash account contained $10.000 at the end of the current veat. The treasurer feels that this reoresents a minimum balance that purchases will be for cash. g. The Cash account contained $10,000 at the end of the current year, The treasurer feels that this represents a minimum balance tha must be maintained. h. The company's bank allows borrowing in increments of $1,000 ot the beginning of each quarter, up to a total loan balance of $100,000. The interest rate on these loans is 2.5% per quarter and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the year. 1. At present, the company has no loans outstanding. Required: 1. Calculate the expected cash collections by quarter and in total for next year. 2. Calculate the expected cash disbursements for merchandise purchases by quarter and in total for next year. 3. Calculate the expected cash disbursements for selling and administrative expenses, by quarter and in total for next year. 4. Prepare a cash budget by quarter and in total for next year. Complete this question by entering your answers in the tabs below. 1. Calculate the expected cash collections by quarter and in total for next year. 2. Calculate the expected cash disbursements for merchandise purchases by quarter and in total for next year: Required: 1. Calculate the expected cash collections by quarter and in total for next yeat, 2. Calculate the expected cash disbursements for merchandise purchases by quarter and in total for next yeat. 3. Calculate the expected cash disbursements for selling and administrative expenses, by quarter and in total for next year. 4. Prepare a cash budget by quartes and in total for next yeat. Complete this question by entering your answers in the tabs below. Req 1 and 2 Required 3 Required 4 Prepare a cash budget by quarter and in total for next year. (Cash deficiency, repayments and interest should be indicated by a minus sign.) ( Required 3

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