please answer my cash budget

CALCULATOR PRINTER VERSION 4 BACK NEXT Waterways Continuing Problem 09 Waterways Corporation is preparing its budget for the coming year, 2020. 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. Sales Unit sales for November 2019 Unit sales for December 2019 Expected unit sales for January 2020 Expected unit sales for February 2020 Expected unit sales for March 2020 Expected unit sales for April 2020 Expected unit sales for May 2020 Unit selling price 112,000 103,000 112,000 111,000 117,000 125,000 138,000 $12 sale, and 15% of the Accounts Receivable 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 are collected in the month after sale. Accounts receivable on December 31, 2019, 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, 2019, totaled 11,190 pounds. Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts Payable on December 31, 2019, totaled $104,300. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $6 per hour. Manufacturing Overhead Indirect materials 30 Indirect labor 50 Utilities 40 Maintenance Salaries $41,000 Depreciation $16,600 Property taxes $2,500 20 per labor hour per labor hour per labor hour per labor hour per month per month per month CALCULATOR PRINTER VERSION BACK NEXT paid in the month of purchase, and 50% is paid in the month after purchase. Accounts Payable on December 31, 2019, totaled $104,300. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $6 per hour. Manufacturing Overhead Indirect materials 30 Indirect labor 50 Utilities 40 Maintenance 20 Salaries $41,000 Depreciation $ 16,600 Property taxes $2,500 Insurance $1,100 Maintenance $1,200 per labor hour per labor hour per labor hour per labor hour per month per month per month per month per month Selling and Administrative Variable selling and administrative cost per unit is $1.60. Advertising $14,000 a month Insurance $1,200 a month Salaries $74,000 a month Depreciation $2,600 a month Other fixed costs $3,000 a month Other Information The Cash balance on December 31, 2019, totaled $102,000, but management has decided it would like to maintain a cash balance of at least $800,000 beginning on January 31, 2020. Dividends are paid each month at the rate of $2.70 per share for 4,690 shares outstanding. The company has an open line of credit with Romney's Bank. The terms of the agreement requires borrowing to be in $1,000 increments at 6% interest. Waterways borrows on the first day of the month and repays on the last day of the month. A $450,000 equipment purchase is planned for February. ALCULATOR PRINTER VERSION I BACK For the first quarter of 2020, prepare a sales budget. WATERWAYS CORPORATION Sales Budget For the First Quarter of 2020 First Quarter January February March Quarter Expected Unit Sales 112000 111000 117000 340000 Unit Selling Price 12 12 12 12 $ $ $ Total Sales 1344000 1332000 1404000 4080000 $ For the first quarter of 2020, prepare a production budget. WATERWAYS CORPORATION Production Budget For the First Quarter of 2020 First Quarter January February March Quarter Expected Unit Sales 112000 111000 117000 Add Desired Ending Finished Goods Unit 11100 11700 12500 Total Required Units 123100 122700 129500 Less : Beginning Finished Goods Unit 11200 11100 11700 Required Production Units 111900 111600 117800 341300 For the first quarter of 2020, prepare a direct materials budget. (Round cost per pound to 2 decimal places, e.g. 0.25 and all other answers to 0 decimal places, e.g. 2,520.) WATERWAYS CORPORATION Direct Materials Budget For the First Quarter of 2020 First Quarter January February March Quarter Units to be Produced Direct Materials Per Unit Total Pounds Required for Production Add Desired Ending Inventory Total Materials Required Less Beginning Materials Inventory Direct Materials Purchases Cost Per Pound $ Total Cost of Direct Materials Purchases $ For the first quarter of 2020, prepare a direct labor budget. (Round time per unit to nearest hour, e.g. 30 minutes will be rounded to 0.5 hours) WATERWAYS CORPORATION Direct Labor Budget For the First Quarter of 2020 First Quarter January February March Quarter Units to be Produced Direct Labor Time (Hours) Per Unit Total Required Direct Labor Hours Direct Labor Cost Per Hour $ $ $ $ Total Direct Labor Cost $ $ $ $ For the first quarter of 2020, prepare a manufacturing overhead budget. (Round overhead rate to 2 decimal places, e.g. 5.25 and all other answers to 0 decimal places, e.g. 2,520. List Variable costs first.) WATERWAYS CORPORATION Manufacturing Overhead Budget For the First Quarter of 2020 First Quarter January February March Quarter Variable Costs Indirect Materials $ Indirect Labor Utilities Maintenance Total Variable Cost Fixed Costs Salaries > Depreciation Property Taxes Insurance Maintenance Total Fixed Costs $ Total Manufacturing Overhead Direct Labor Hours Predetermined overhead rate for the quarter For the first quarter of 2020, prepare a selling and administrative budget. (Enter per unit expenses rounded to 2 decimal places. E.g. 1.25) WATERWAYS CORPORATION Selling and Administrative Expense Budget For the First Quarter of 2020 V First Quarter January February March Quarter Budget Sales In Units Variable Expenses Per Unit $ $ $ $ Total Variable S & A Expense $ $ $ $ Fixed Expenses Advertising $ $ Insurance Salaries Depreciation Other Total Fixed Expenses $ $ $ Total S & A Expenses For the first quarter of 2020, prepare a schedule for expected cash collections from customers. Schedule of Expected Collections from Customers January February March Quarter Accounts receivable, 12/31/19 $ $ $ $ January sales February sales March sales Total cash collections $ $ $ For the first quarter of 2020, prepare a schedule for expected payments for materials purchases. (Round answers to o decimal places, e.g. 2,520.) Schedule of Expected Cash Payments for Purchases January February March Quarter Accounts payable, 12/31/19 $ $ $ January February March Total payments For the first quarter of 2020, prepare a cash budget. (Round answers to 0 decimal places, e.g. 2,520.) V WATERWAYS CORPORATION Cash Budget For the First Quarter of 2020 First Quarter January February March Quarter Beginning Cash Balance Add Receipts Collections From Customers Total Available Cash Less Disbursements Direct Materials Direct Labor Manufacturing Overhead Selling And Administrative Equipment Purchase Dividends Total Disbursements Excess (Deficiency) Of Available Cash Over Cash Disbursements Financing Add Borrowings Less Repayments Interest Ending Cash Balance Click you would like to Show Work for this question: Open Show Work