part I. for the quarter of 2022 prepare a cash budget
Current Attempt in Progress Waterways 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 gathered information from its managers in preparation of the budgeting process. 113,000 103,000 112,000 Sales Unit sales for November 2021 Unit sales for December 2021 Expected unit sales foddanuary 2022 Expected unit sales for February 2022 Expected unit sales for March 2022 Expected unit sales for April 2022 Expected unit sales for May 2022 Unit selling price 112,000 116,000 127.000 137,000 $12 Waterways likes to keep 10% of the next month's unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2021. totaled $185.400, Direct Materials Direct materials cost 80 cents per pound. Two pounds of direct materials are required to produce each unit. Waterways likes to keep 5% of the materials needed for the next month in its ending inventory. Raw Materials on December 31, 2021 totaled 11.200 pounds. Payment for materials is made within 15 days. 50% is paid in the month of purchase, and Sox is paid in the month after purchase. Accounts Payable on December 31, 2021, totaled $120,595 Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour. Selling and Administrative Variable selling and administrative cost per unit is $1.80, Advertising $17.000 a month Insurance $1,300 a month Salaries $72.000 a month Depreciation $2.800 a month Other foxed costs $2.900 a month Other Information The Cash balance on December 31, 2021, totaled $100,000, but management has decided it to main charo at least $700,000 beginning on January 31, 2022. Dividends are paid each month at the rate of $2.30 per start for Sures outstanding. The company has an open line of credit with Romney's Bank. The terms of the agreement requires borrowed to be $1.000 increments at 9% interest Waterways borrows on the day of the month and repays on the last day of the most $490.000 equipment purchase is planned for February First Quarter January Beginning Cash Balance 5 100000 $ Add Receipts Collections From Customers 1327800 Total Available Cash > 1427800 Less V Disbursements Direct Materials 210211 Direct labor Dividends > 11891 fou mont Purchase Total Disbursements Ecas Dudency of valable Cash Cashout Finanon Add Borrowing Les Repunten Manufacturing Overhead Indirect materials 30 per labor hour Indirect labor 50 per labor hour Utilities 40 per labor hour Maintenance 20 per labor hour Salaries $42,000 per month Depreciation $16,200 per month Property taxes $2,900 per month Insurance $1,300 per month Maintenance $1,400 per month For the first quarter of 2022 prepare a cash budget. (Round answers to decimal places, Begini Cash Balance V Add V Receipts Collections From Customers Total Alle Cash Disbursements Direct Materials Direct Labor Manufacturing whead Sein And Administrative Dividends Tothbrements Fine Cash For the first quarter of 2022. prepare a cash budget. (Round answers to decimal places, as 25 WATERWAYS CORPORATION Cash Budget For the First Quarter of 2022 First Quarter January February March 100000 $ $ 1327800 1344000 1427800 210211 129724 201600 202320 11093 111191 40000
