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Please help asap! ill give thumbs up! Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for
Please help asap! ill give thumbs up!
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 gothered information from itsmanagers in preparation of the budgeting proces5. Waterways likes to keep. 100 of the next monthis 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 colfected in the month after sale. Accounts receivable on December 31,2019 , totaled $181,800. Direct Materials Direct materials cost 80 cents per pound. Two pounds of direct inaterials are required to produce each unit. Waterwinys likes to keep 10 sis of the next month's unit sales in ending inventory. All sales are on account 85% of the Accounts Receivable are collectec in the month of sale, and 15% of the Accounts Receivable are collocted in the month atter sale. Accounts receivable on December 31,2019 , totaled 5181,800 . Direct Materials Direct materials cost 80 cents per pound. Two pounds of direct matorials are required to produce each unit. Waterways likes to keep 5% of the materials needed for the next monthin its ending inwentory. Raw Materials on Decernber 31. 2019. totaled 11290 pounds. Payment for materials is made within 15 days. 50k is paid in the month of purchare and 50 s is paid in the month after purchase. Accounts Payable on December 31,2019 , totaled $102.735. Manulacturing Overhead Indirectmateriais 30e perlabor hour Indirectlaber 504 pertabor hour Utilities soe perlabor hour Maintenance 30 perlabor hour Sataries $41.000 permonth Depreciation $16.400 permonth Property taxes $2.600 permonth Insurance $1.200 permonth Maintenance $1.300 perimonth Selling and Administrative Variable selling and administrative cost per unit is $150, Advertising $14.000 a month Insurance $1.n00 a menth Salaries $70,000 a month Depreciation $2,400 amenth Other Intorthation The Cash balance on December 31, 2019, totaled $101,000, but maragement has decided it weuld like to maintain a cash balance of at least $800,000 beginning on danuary 31, 2020. Dividends are pald each month at the rate of $2.70 per share for 5,240 shares outstanding. The company has an open line of credit with Romney's Bank The terms of the agreernent requires borrowing to be in $1.000 increments at 98 interest. Waterways borrows on the first day of the month and repays on the last day of the month. A $490.000 equipment purchase is planned tor February For the first quarter of 2020, prepare a sales budset For the first quarter of 2020, prepare a sales budget Step by Step Solution
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