please explain problems with solutions!

Alpha-Tech, a rapidly growing distributor of electronic components, is formulating its plans for 20x5. Carol Jones, the firm's marketing director, has completed the following sales forecast.

ALPHA-TECH

20x5 Forecasted Sales

(in thousands)

Month

Sales

January

$

11,000

February

12,000

March

11,000

April

13,500

May

14,500

June

16,000

July

17,000

August

17,000

September

18,000

October

18,000

November

17,000

December

19,000

Phillip Smith, an accountant in the Planning and Budgeting Department, is responsible for preparing the cash flow projection. The following information will be used in preparing the cash flow projection.

• Alpha-Tech's excellent record in accounts receivable collection is expected to continue. Sixty percent of billings are collected the month after the sale, and the remaining 40 percent two months after.
• The purchase of electronic components is Alpha-Tech's largest expenditure, and each month's cost of goods sold is estimated to be40 percent of sales. Seventy percent of the parts are received by Alpha-Tech one month prior to sale, and 30 percent are received during the month of sale.
• Historically, 70 percent of accounts payable has been paid one month after receipt of the purchased components, and the remaining 30 percent has been paid two months after receipt.
• Hourly wages and fringe benefits, estimated to be 30 percent of the current month's sales, are paid in the month incurred.
• General and administrative expenses are projected to be $16,420,000 for the year. The breakdown of these expenses is presented in the following schedule. All cash expenditures are paid uniformly throughout the year, except the property taxes, which are paid in four equal installments at the end of each quarter.

20x5 Forecasted General and Administrative Costs

(in thousands)

Salaries and fringe benefits

$

3,400

Promotion

4,100

Property taxes

1,420

Insurance

1,240

Utilities

2,000

Depreciation

4,260

Total

$

16,420

• Income-tax payments are made at the beginning of each calendar quarter based on the income of the prior quarter. Alpha-Tech is subject to an income-tax rate of 40 percent. Alpha-Tech's operating income for the first quarter of 20x5 is projected to be $4,500,000. The company pays 100 percent of the estimated tax payment.
• Alpha-Tech maintains a minimum cash balance of $565,000. If the cash balance is less than $565,000 at the end of each month, the company borrows amounts necessary to maintain this balance. All amounts borrowed are repaid out of the subsequent positive cash flow. The projected April 1, 20x5, opening balance is $565,000.
• Alpha-Tech has no short-term debt as of April 1, 20x5.
• Alpha-Tech uses a calendar year for both financial reporting and tax purposes.

Requied:

1.create a cash budget for Alpha-Tech by month for the second quarter of 20x5. For simplicity, ignore any interest expense associated with borrowing.(Negative amounts should be indicated by a minus sign.)

Mary and Kay, Inc., a distributor of cosmetics throughout Florida, is in the process of assembling a cash budget for the first quarter of 20x1. The following information has been extracted from the company's accounting records:

• All sales are on account. Sixty percent of customer accounts are collected in the month of sale; 30 percent are collected in the following month. Uncollectibles amounting to 10 percent of sales are anticipated, and management believes that only 20 percent of the accounts outstanding on December 31, 20x0, will be recovered and that the recovery will be in January 20x1.
• Sixty percent of the merchandise purchases are paid for in the month of purchase; the remaining 40 percent are paid for in the month after acquisition.
• The December 31, 20x0, balance sheet disclosed the following selected figures: cash, $55,000; accounts receivable, $220,000; and accounts payable, $77,000.
• Mary and Kay, Inc. maintains a $55,000 minimum cash balance at all times. Financing is available (and retired) in $1,000 multiples at an 9 percent interest rate, with borrowings taking place at the beginning of the month and repayments occurring at the end of the month. Interest is paid at the time of repaying principal and computed on the portion of principal repaid at that time.
• Additional data:

January

February

March

Sales revenue

$

560,000

$

650,000

$

665,000

Merchandise purchases

380,000

410,000

530,000

Cash operating costs

104,000

83,000

146,000

Proceeds from sale of equipment

26,000

Required:

1.create a schedule that discloses the firm's total cash collections for January through March.

2.create a schedule that discloses the firm's total cash disbursements for January through March.

3.create a schedule that summarizes the firm's financing cash flows for January through March.

Badlands, Inc. manufactures a household fan that sells for $25 per unit. All sales are on account, with 30 percent of sales collected in the month of sale and 70 percent collected in the following month. The data that follow were extracted from the company's accounting records.

• Badlands maintains a minimum cash balance of $21,000. Total payments in January 20x1 are budgeted at $205,000.
• A schedule of cash collections for January and February of 20x1 revealed the following receipts for the period:

Cash Receipts

January

February

From December 31 accounts receivable

$

105,000

From January sales

91,000

$

144,000

From February sales

70,500

• March 20x1 sales are expected to total 7,000 units.
• Finished-goods inventories are maintained at 30 percent of the following month's sales.

Mary and Kay, Inc., a distributor of cosmetics throughout Florida, is in the process of assembling a cash budget for the first quarter of 20x1. The following information has been extracted from the company's accounting records:

• All sales are on account. Sixty percent of customer accounts are collected in the month of sale; 30 percent are collected in the following month. Uncollectibles amounting to 10 percent of sales are anticipated, and management believes that only 20 percent of the accounts outstanding on December 31, 20x0, will be recovered and that the recovery will be in January 20x1.
• Sixty percent of the merchandise purchases are paid for in the month of purchase; the remaining 40 percent are paid for in the month after acquisition.
• The December 31, 20x0, balance sheet disclosed the following selected figures: cash, $60,000; accounts receivable, $180,000; and accounts payable, $69,000.
• Mary and Kay, Inc. maintains a $60,000 minimum cash balance at all times. Financing is available (and retired) in $1,000 multiples at an 9 percent interest rate, with borrowings taking place at the beginning of the month and repayments occurring at the end of the month. Interest is paid at the time of repaying principal and computed on the portion of principal repaid at that time.
• Additional data:

January

February

March

Sales revenue

$

480,000

$

570,000

$

585,000

Merchandise purchases

300,000

330,000

450,000

Cash operating costs

96,000

75,000

138,000

Proceeds from sale of equipment

18,000

Required:

1.createa a schedule that discloses the firm's total cash collections for January through March.

2.create a schedule that discloses the firm's total cash disbursements for January through March.

3.create a schedule that summarizes the firm's financing cash flows for January through March.

Mary and Kay, Inc., a distributor of cosmetics throughout Florida, is in the process of assembling a cash budget for the first quarter of 20x1. The following information has been extracted from the company's accounting records:

• All sales are on account. Sixty percent of customer accounts are collected in the month of sale; 30 percent are collected in the following month. Uncollectibles amounting to 10 percent of sales are anticipated, and management believes that only 20 percent of the accounts outstanding on December 31, 20x0, will be recovered and that the recovery will be in January 20x1.
• Sixty percent of the merchandise purchases are paid for in the month of purchase; the remaining 40 percent are paid for in the month after acquisition.
• The December 31, 20x0, balance sheet disclosed the following selected figures: cash, $50,000; accounts receivable, $170,000; and accounts payable, $67,000.
• Mary and Kay, Inc. maintains a $50,000 minimum cash balance at all times. Financing is available (and retired) in $1,000 multiples at an 9 percent interest rate, with borrowings taking place at the beginning of the month and repayments occurring at the end of the month. Interest is paid at the time of repaying principal and computed on the portion of principal repaid at that time.
• Additional data:

January

February

March

Sales revenue

$

460,000

$

550,000

$

565,000

Merchandise purchases

280,000

310,000

430,000

Cash operating costs

94,000

73,000

136,000

Proceeds from sale of equipment

16,000

Required:

1.Create schedule that discloses the firm's total cash collections for January through March.

2.Create schedule that discloses the firm's total cash disbursements for January through March.

3.create schedule that summarizes the firm's financing cash flows for January through March.

Required:

1.Determine the number of units that Badlands sold in December 20x0.

2.Compute the sales revenue for March 20x1.

3.Compute the total sales revenue to be reported on Badlands' budgeted income statement for the first quarter of 20x1.

4.Determine the accounts receivable balance to be reported on the March 31, 20x1, budgeted balance sheet.

5.Calculate the number of units in the December 31, 20x0, finished-goods inventory.

6.Calculate the number of units of finished goods to be manufactured in January 20x1.

7.Calculate the financing required in January, if any, to maintain the firm's minimum cash balance.