Need help with part I $($Cash Budget$).$ w Watervays Corporation is preparing its budget for the coming year, $2022.$ The first step is to plan for the first quarter of that coming

year. The company has gathersd information frum its managers in preparation of the budgeting process.

Watervays liks to lesp $10\%$ of the next month's unit salas in ending imentory. All sales are an account. $85\%\%$ of the Accounts

Recsivable are collected in the month of sale, and $15\%$ of the Accounts Recsivable ars collectad in the month after sale. Accounts

racaivable on Decamber $31,2021,$ totalad $$181,800.$

Direct Materials

Dirsct matarials cost $90$ cents per pound. Two pounds of dirsct materials are requirsd to produce each unit.

Watervays likas to lasp $5\%$ of the materials nseded for the next month in its ending inventory. Raw Matarials an December $31,2021$

tataled $11,220$ pounds. Payment for matarials is made within $15$ days. $50\%6$ is paid in the month of purchase, and $50\%$ is paid in the

month after purchase. Accounts Payable on December $31,2021,$ totalad $$120,595.$

Direct Labor

Labor requires $12$ minutes per unit for complation and is paid at a rate of $$9$ par hour.

Selling and Administrative

Variable selling and administrative cost per unit is $$1\mathrm{.}50.$Your answer is corract.

For the first quarter of $2022,$ prapare a sales budget.

$($b$)$

Yaur answer is corract.

For the first quarter of $2022,$ prapare a production budget. For the first quarter of $2022,$ prepare a cash budget. $($Round answers to $0$ decimal places, eg$.2\mathrm{.}520)$

WATERWAYS CORPORATION

Cash Budget

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