ONLY ANSWER # 6 & 7 PLEASE

. ONLY ANSWER # 6 & 7!!!!!!!!!!!!!!!

Number 6 & 7 please

Answer 1.
Monthly Sales Budget
	Jan	Feb	March	Total
Sales in Units	7,500	9,000	11,000	27,500
Selling Price Per Unit	55	55	55	55
Sales in $	412,500	495,000	605,000	1,512,500
Cash Sales - 25%	103,125	123,750	151,250	378,125
Credit Sales - 75%	309,375	371,250	453,750	1,134,375
Schedule of Expected Cash Collections from Sales
	Jan	Feb	March	Total
Cash Sales	103,125	123,750	151,250	378,125
Collection from Accounts Receivables
Dec Accounts recevables	125,000	395,000		520,000
Jan Sales		210,375	99,000	309,375
Feb Sales			252,450	252,450
Total cash Collections	228,125	729,125	502,700	1,459,950
Answer 2.
Monthly Merchandise Purchase Budget
	Jan	Feb	March	Total
Sales in Units	7,500	9,000	11,000	27,500
Add: Ending Inventory -20%	1,800	2,200	2,000	2,000
Total Needs	9,300	11,200	13,000	29,500
Less: Beginning Inventory in units	(5,000)	(1,800)	(2,200)	(5,000)
Required Purchases in Units	4,300	9,400	10,800	24,500
Purchase Cost per Unit	20	20	20	20
Desired Purchases	86,000	188,000	216,000	490,000
Schedule of Cash payments to Suppliers
	Jan	Feb	March	Total
Cash Payment
Accounts Payable - Dec	85,000	265,000	-	350,000
Jan Purchases	-	17,200	68,800	86,000
Feb Purchases	-	-	37,600	37,600
Total Cash Payment to Suppliers	85,000	282,200	106,400	473,600
Answer 3.
Monthly Selling Expenses Budget
	Jan	Feb	March	Total
Sales Commission - 20% of Sales	82,500	99,000	121,000	302,500
Sales Salaries	96,000	96,000	96,000	288,000
Total Selling Expenses	178,500	195,000	217,000	590,500
Schedule of Cash payments to Selling Expenses
	Jan	Feb	March	Total
Sales Commission - 20% of Sales	82,500	99,000	121,000	302,500
Sales Salaries	96,000	96,000	96,000	288,000
Total Cash Paid for Selling Expenses	178,500	195,000	217,000	590,500
Answer 4.
Monthly General & Adminstrative Expense Budget
	Jan	Feb	March	Total
General & Admn. Salaries	13,000	13,000	13,000	39,000
Maintenance Expenses	2,100	2,100	2,100	6,300
Depreciation Expenses	6,042	7,052	7,354	20,448
Total General & Admn. Expenses	21,142	22,152	22,454	65,748
Depreciation Expenses
	Jan	Feb	March
Old Equipment	5,677	5,677	5,677
Equipment - Purchased in Jan	365	365	365
Equipment - Purchased in Feb	-	1,010	1,010
Equipment - Purchased in Mar	-	-	302
Total Depreciation Charged	6,042	7,052	7,354
Schedule of Cash payments of Selling & Admn. Budget
	Jan	Feb	March	Total
General & Admn. Salaries	13,000	13,000	13,000	39,000
Maintenance Expenses	2,100	2,100	2,100	6,300
				-
Total	15,100	15,100	15,100	45,300

Near the end of 2017, the management of Ballixter Boxing Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2017 BALLIXTER BOXING COMPANY Estimated Balance Sheet December 31, 2017 Liabilities and Equity $37,000 Accounts payable 520,000 Bank loan payable 100,000 Taxes payable (due 657,000 Total liabilities Accounts receivable Total current assets $457,000 Common stock Less accumulated depreciation 476,875 Retained earnings 6 Total stockholders'equity $1.133,875 Total liabilities and equity $1.133,875 To prepare a master budget for January, February, and March of 2018, management gathers the following information. a. Ballixter Boxing's single product is purchased for S20 per unit and resold for S55 per unit. The expected inventory level of 5,000 units on December 31, 2017, is more than management's desired level for 2018, which is 20% of the next month's expected sales (in units). Expected sales are: January, 7.500 units. February, 9,000 units: March, 11,000 units; and April, 10,000 units. b. Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 68% is collected in the first month after the month of sale and 32% in the second month after the month of sale. For the December 31, 2017, accounts receivable balance, $125,000 is collected in January and the remaining $395,000 is collected in February c. Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 3, 2017, accounts payable balance, $85,000 is paid in January and the remaining $265,000 is paid in February S96,000 per year paid in cash. d. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are e. General and administrative salaries are S156,000 per year. Maintenance expense equals $2,100 per month and is f. Equipment reported in the December 31, 2017, balance sheet was purchased in January 2017. I is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $35,000, February, $97,000; and March, $29,000. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month's depreciation is taken for the month in which equipment is purchased. g. The company plans to acquire land at the end of March at a cost of $180,000, which will be paid with cash on the last day of the month. h. Ballixter Boxing has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of$23,365 in each month i. The income tax rate for the company is 32%. Income taxes on the first quarter's income will not be paid until Near the end of 2017, the management of Ballixter Boxing Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2017 BALLIXTER BOXING COMPANY Estimated Balance Sheet December 31, 2017 Liabilities and Equity $37,000 Accounts payable 520,000 Bank loan payable 100,000 Taxes payable (due 657,000 Total liabilities Accounts receivable Total current assets $457,000 Common stock Less accumulated depreciation 476,875 Retained earnings 6 Total stockholders'equity $1.133,875 Total liabilities and equity $1.133,875 To prepare a master budget for January, February, and March of 2018, management gathers the following information. a. Ballixter Boxing's single product is purchased for S20 per unit and resold for S55 per unit. The expected inventory level of 5,000 units on December 31, 2017, is more than management's desired level for 2018, which is 20% of the next month's expected sales (in units). Expected sales are: January, 7.500 units. February, 9,000 units: March, 11,000 units; and April, 10,000 units. b. Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 68% is collected in the first month after the month of sale and 32% in the second month after the month of sale. For the December 31, 2017, accounts receivable balance, $125,000 is collected in January and the remaining $395,000 is collected in February c. Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 3, 2017, accounts payable balance, $85,000 is paid in January and the remaining $265,000 is paid in February S96,000 per year paid in cash. d. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are e. General and administrative salaries are S156,000 per year. Maintenance expense equals $2,100 per month and is f. Equipment reported in the December 31, 2017, balance sheet was purchased in January 2017. I is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $35,000, February, $97,000; and March, $29,000. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month's depreciation is taken for the month in which equipment is purchased. g. The company plans to acquire land at the end of March at a cost of $180,000, which will be paid with cash on the last day of the month. h. Ballixter Boxing has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of$23,365 in each month i. The income tax rate for the company is 32%. Income taxes on the first quarter's income will not be paid until