Prepare the cash budget. (Complete all input fields. Enter a "0" for any zero balances. Round all amounts entered into the cash budget to the nearest whole dollar. Enter a cash deficiency, principal repayments, and/or a net repayment on financing with a minus sign or parentheses.)
Review the cash receipts budget you prepared above.
Review the cash payments budget you prepared above.
develaping a master budget by quarters. Galdherg's balance sheet far December 21,2024 , fallows: (Click, ate icon to view the balsnce shest.) Reference The Goldberg Tre Company manufectures facing tires for bicyctee. Goldberp sell lires for $70 each. Goldberg is planring for the devedaping a master budget by quarters. Galdherg's balance sheet far December 21,2024 , fallows: (Click, the ican to vies the balsnce shest.) Referenc Prepsre the cash buckel. (Complele all input feids. Enter a "0" for sny zero balarnoes. Round all ymounts en Cash Re (Unless otherwise noted, assume all of the following events occurred during 2024 and that any balances given are stated as of December 31, 2024.) a. Budgeted sales are 1,900 tires for the first quarter and expected to increase by 100 tires per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. b. Finished Goods Inventory on December 31,2024 consists of 700 tires at $27 each. c. Desired ending Finished Goods Inventory is 40% of the next quarter's sales; first quarter sales for 2026 are expected be 2,300 tires. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2024, consists of 1,400 pounds of rubber compound used to manufacture the tires. e. Direct materials requirements are two pounds of a rubber compound per tire. The cost of the compound is $5.50 per pound. f. Desired ending Raw Materials Inventory is 50% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2025 is 1,400 pounds; indirect materials are insignificant and not considered for budgeting purposes. g. Each tire requires 0.70 hours of direct labor, direct labor costs average $16 per hour. h. Variable manufacturing overhead is $4 per tire. i. Fixed manufacturing overhead includes $3,000 per quarter in depreciation and $32,785 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $12,000 per quarter for salaries; $5,700 per quarter for rent; $600 per quarter for insurance; and $500 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 3% of sales. I. Capital expenditures include $20,000 for new manufacturing equipment, to be purchased and paid in the first quarter. m. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; December 31, 2024, Accounts Receivable is received in the first quarter of 2025; uncollectible accounts are considered insignificant and not considered for budgeting purposes. n. Direct materials purchases are paid 90% in the quarter purchased and 10% in the following quarter; December 31, 2024, Accounts Payable is paid in the first quarter of 2025. o. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. develaping a master budget by quarters. Galdherg's balance sheet far December 21,2024 , fallows: (Click, ate icon to view the balsnce shest.) Reference The Goldberg Tre Company manufectures facing tires for bicyctee. Goldberp sell lires for $70 each. Goldberg is planring for the devedaping a master budget by quarters. Galdherg's balance sheet far December 21,2024 , fallows: (Click, the ican to vies the balsnce shest.) Referenc Prepsre the cash buckel. (Complele all input feids. Enter a "0" for sny zero balarnoes. Round all ymounts en Cash Re (Unless otherwise noted, assume all of the following events occurred during 2024 and that any balances given are stated as of December 31, 2024.) a. Budgeted sales are 1,900 tires for the first quarter and expected to increase by 100 tires per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. b. Finished Goods Inventory on December 31,2024 consists of 700 tires at $27 each. c. Desired ending Finished Goods Inventory is 40% of the next quarter's sales; first quarter sales for 2026 are expected be 2,300 tires. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2024, consists of 1,400 pounds of rubber compound used to manufacture the tires. e. Direct materials requirements are two pounds of a rubber compound per tire. The cost of the compound is $5.50 per pound. f. Desired ending Raw Materials Inventory is 50% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2025 is 1,400 pounds; indirect materials are insignificant and not considered for budgeting purposes. g. Each tire requires 0.70 hours of direct labor, direct labor costs average $16 per hour. h. Variable manufacturing overhead is $4 per tire. i. Fixed manufacturing overhead includes $3,000 per quarter in depreciation and $32,785 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $12,000 per quarter for salaries; $5,700 per quarter for rent; $600 per quarter for insurance; and $500 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 3% of sales. I. Capital expenditures include $20,000 for new manufacturing equipment, to be purchased and paid in the first quarter. m. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; December 31, 2024, Accounts Receivable is received in the first quarter of 2025; uncollectible accounts are considered insignificant and not considered for budgeting purposes. n. Direct materials purchases are paid 90% in the quarter purchased and 10% in the following quarter; December 31, 2024, Accounts Payable is paid in the first quarter of 2025. o. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred
