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Old MathJax webview question 2 is the second picture Problem 3: Budgeted Income Statement and Cash Budget Refer to the previous problem 2 for Galaxy
Old MathJax webview
question 2 is the second picture
Problem 3: Budgeted Income Statement and Cash Budget Refer to the previous problem 2 for Galaxy Lighting. In addition to the information given in Problem selling and administrative expenses paid in cash are $160,000 per month. Depreciation on the office building is $7100 per month and the September 1 cash balance is expected to be $55,000. 9 Required: 1. Prepare a Budgeted Income Statement for September, October, and November (Hint: Calculate cost of goods 30 sold using sales in units from sales budget x purchase cost per unit). 31 2. Prepare a monthly Cash Budget for September, October, and November. 32 3. What is a non-cash expense and how is it used in budgeting? 133 135 Galaxy Lighting Company eceipts, Purchases Budget, and Cash Payments Galaxy Lighting Company manufactures and sells lighting fixtures. Units are sold for $51 each and all sales are 67 on account or credit sales. The estimated sales dollars are given below. 68 August sales dollars $285,500 69 September sales dollars $370,400 70 October sales dollars $545,400 71 November sales dollars $582,000 72 December sales dollars $610,100 73 Galaxy Lighting Company estimates that 51% of sales are collected in the same month as the sale and 49% collected the month after the sale. August 31's ending accounts receivable is expected to be $139895 and 74 should be collected in September. Generally, 64% of purchases are due and payable in the month of purchase with the remainder due the following month. The material purchase cost per unit is $23. The company maintains an ending raw materials inventory of 11% of next month's UNIT sales. August's ending inventory is estimated at 616 units and November's ending raw materials inventory is estimated at 1316 units. The accounts payable balance on August 31 is expected to be $11,000 and should be paid in September 75 76 Required: 77 1. Prepare a Sales Budget in dollars and units for September, October, and November (Hint: Sales units = Sales dollars/sales price per unit) 78 2. Prepare a Schedule of Cash Receipts (or Collections) from customers for September, October, and November 79 3. Prepare a Purchases Budget for September, October, and November. 20 4. Prepare a Schedule of Cash Payments for Material Purchases for September, October, and NovemberStep by Step Solution
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