NEED ASSISTANCE WITH CASH BUDGET DISBURSEMENT ON A FINANCIAL STATEMENT

FOR VARIABLE AND FIXED AMOUNTS.

Payment is based on certain criteria listed below.

I have taken screenshots and attached the data accordingly. .

The first set of numbers is the information used to solve the problem. Some of the incomplete work is empty or wrong because I am not sure what to do! The fixed annual insurance may be incorrect as I spaced it out over the 12 months, but I don't think I should have done that. Am I correct in thinking that the $84,000 would show up ONLY in January?

h. Sales commissions are 14% of sales price. 100% of sales commissions are payable on the 15th day of the month after the sale.

i. Administrative salaries and fringe benefits are $60,000 per month. Administrative salaries are paid one-half on the third Friday of the current month and one-half is on the first Friday of the next month.

j. Rent on administrative office space is $10,000 per month. Rent for each month is due on the first day of each month.

k. On January 1, 20xx the Company will pay an $84,000 annual insurance liability premium covering January through December, 20xx. This insurance policy is a different policy than MOH insurance.

l. Other administrative expenses are estimated to be 7.5% of sales. Other administrative expenses are paid in the month after the expense occurs.

Section 1: SG&A Budget (to Income Statement)
	Jan	Feb	Mar	Apr	Qtr Total
Variable
Sales Commission (from Sales)	$ (196,853)	$ (230,336)	$ (263,819)	$ (297,302)	$ (988,310)
Bad Debt Expense (from Sales)	(168,731)	(197,431)	(226,130)	(254,830)	(847,123)
Other Admin Expense (from Sales)	(105,457)	(123,394)	(141,332)	(159,269)	(529,452)
Total Variable	(471,042)	(551,161)	(631,281)	(711,400)	(2,364,884)
Fixed
Rent Expense	(10,000)	(10,000)	(10,000)	(10,000)	(40,000)
Insurance Expense	(7,000)	(7,000)	(7,000)	(7,000)	(28,000)
Admin Salaries/Benefits	(60,000)	(60,000)	(60,000)	(60,000)	(240,000)
Total Fixed	(77,000)	(77,000)	(77,000)	(77,000)	(308,000)
Total Selling and Administrative	$ (548,042)	$ (628,161)	$ (708,281)	$ (788,400)	$ (2,672,884)

I AM UNSURE ABOUT JANUARY AND WHETHER THE OTHER MONTHS ARE CORRECT!

Section 3: Wages Payable (to Section 15) Section 5: Allowance for Doubtful Accounts (DA) (to Balance Sheet) Section 7: Accounts Payable (to Section 16) Fixed Section 8: Expected Cash Disbursements-Rent Expense (to Section 14) Section 9: Accounts Payable (to Section 16) Accounts Payable, Beginning Bal Accounts Payable, Ending Bal Section 10: Expected Cash Disbursements-Insurance (to Section 14) \begin{tabular}{llllll} & Jan & Feb & Mar & Apr & Qtr Total \\ \hline$ & (84,000) & & & & \end{tabular} Jan Insurance Feb Insurance Mar Insurance Total Cash Disbursements $(84,000) Section 11: Prepaid Insurance (to Balance Sheet) Jan Feb Mar Apr Qtr Total Prepaid Insurance, Beginning Bal Prepaid Insurance, Ending Bal