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Skis, Inc., manufactures and sells snowboards. Skis manufactures a single model, the Pipex. In late 2020, Skis's management accountant gathered the following data to prepare budgets for January 2021: (Click the icon to view the materials and labor requirements, the direct materials inventor es, and additional inventory information.) (Click the icon to view the budg Ind additional information pertaining to the cash budget.) (Click the icon to view the following selected January 2021 budgets: Revenue, Direct material purchases, Direct man ring labor cost, Variable manufacturing overhead and Ending inventory) i (Click the icon to view the additional variable and fixed manufacturing cost information.) Read the requirements Requirement 1. Prepare a cash budget for January 2021. Show supporting schedules for the calculation of collection of receivables and payments of accounts payable, and for disbursements for fixed manufacturing and operating (nonmanufacturing) overhead. Begin by preparing the supporting schedule for the calculation of collection of receivables. Schedule of Cash Collections From December 2020 sales From January 2021 sales Total collections Next prepare the supporting schedule for the payments of accounts payable. Schedule of Cash Payments for Accounts Payable From December 2020 purchases From January 2021 purchases Total cash payments for accounts payable Prepare the supporting schedule for disbursements for fixed manufacturing and operating (nonmanufacturing) overhead. Schedule of Cash Payments for Fixed Overhead Fixed manufacturing overhead Fixed operating (nonmanufacturing) overhead Total cash payments for fixed overhead Prepare a cash budget for January 2021. (If an input field is not used in the table, leave the input field empty, do not select a label or enter a zero.) Skis, Inc. Cash Budget For Month Ending January 31, 2021 Cash balance, beginning Add receipts Total cash available for needs Deduct disbursements Total disbursements Cash balance, endingRequirement 4. Prepare a budgeted balance sheet for January 31, 2021 by calculating the January 31, 2021 balances in (a) cash (b) accounts receivable (c) inventory (d) accounts payable and (e) plugging in the balance for stockholders' equity. Skis, Inc. Budgeted Balance Sheet January 31, 2021 Assets: Total Liabilities and Stockholders' Equity: TotalX Requirements Data table Data table Reference Prepare a cash budget for January 2021. Show supporting schedules for Budgeted balances at January 31, 2021 are as follows: Materials and Labor Requirements Revenue Budget the calculation of collection of receivables and payments of Cash For January 2021 accounts payable, and for disbursements for fixed manufacturing and Direct materials operating (nonmanufacturing) overhead. Accounts receivable Units Total revenues Wood 10 board feet (b.f.) per snowboard Selling price 2. Skis is interested in maintaining a minimum cash balance of $95,000 at the 1,300,000 end of each month. Will Skis be in a position to pay the $135,000 dividend Inventory Fiberglass 8 yards per snowboard Snowboards 2,000 $ 650 $ on January 31? Property, plant, and equipment (net) S 853,000 Direct manufacturing labor 5 hours per snowboard Direct Materials Purchases Budget 3. Why do Skis's managers prepare a cash budget in addition to the revenue. expenses, and operating income budget? Accounts payable Skis' CEO expects to sell 2,000 snowboards during January 2021 at an estimated retail price of For January 2021 A Prepare a budgeted balance sheet for January 31, 2021 by calculating the Long-term liabilities 181,000 $650 per board. Further, the CEO expects 2021 beginning inventory of 300 snowboards and would like to end January 2021 with 500 snowboards in stock. Materials January 31, 2021 balances in (a) cash (b) accounts receivable (c) inventory (d) accounts payable and (e) plugging in the balance Stockholders' equity Wood Fiberglass Total for stockholders' equity. Selected budgeted information for December 2020 follows: Direct Materials Inventories Physical Units Budget Beginning Inventory Ending Inventory January Cash balance, December 31, 2020 13,000 January 1, 2021 31, 2021 To be used in production 22.000 b.f. 17.600 yards Budgeted sales 1.860,000 Wood 2.030 b.f. 1.530 b.f. Add target ending inventory 1.530 b.f. 2.030 wards Print Done Budgeted ma urchases 780.000 Fiberglass 1.030 yards 2,030 yards Total requirement 23.530 b.f. 19.630 yards Customer invoices are payable within 30 days. From past experience, Skis's accountant Deduct beginning inventory 2.030 b.f. 1.030 yards projects 30% of invoices will be collected in the month invoiced, and 70% will be collected in Other data include: the following month. Accounts payable relates only to the purchase of direct materials. Direct 21.500 b.f. 18,800 yards X materials are purchased on credit with 259% of direct materials purchases paid during the 2020 Unit Price 2021 Unit Price Purchases to be made More info month of the purchase, and 75% paid in the month following purchase. 33.00 per b.f. Cost Budget Wood $ 31.00 per b.f. 709.500 148,800 $ 858,300 Fixed manufacturing overhead costs include $31,000 of depreciation costs and fixed Fiberglass 7.00 per yard $ 8.00 per yard Purchases Variable manufacturing overhead is $0 per direct manufacturing labor-hour. There are also $55,000 operating (nonmanufacturing) overhead costs include $7,000 of depreciation costs. Direct 27.00 per hour 28.00 per hour in fixed manufacturing overhead costs budgeted for January 2021. Skis combines both variable and manufacturing labor and the remaining manufacturing and operating (nonmanufacturing) Direct manufacturing labor Direct Manufacturing Labor Costs Budget fixed manufacturing overhead into a single rate based on direct manufacturing labor-hours. Variable overhead costs are paid monthly. The inventoriable unit cost for ending finished-goods inventory on December 31, 2020, is $300.00. For January 2021 marketing costs are allocated at the rate of $280 per sales visit. The marketing plan calls for 37 sales All property, plant, and equipment acquired during January 2021 were purchased on credit Assume Skis uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations. DMLH Total visits during January 2021. Finally, there are $34,000 in fixed operating (nonmanufacturing) costs Output Units Hourly and did not entail any outflow of cash. There were no borrowings or repayments with respect budgeted for January 2021. to long-term liabilities in January 2021. On December 15, 2020, Skis's board of directors Produced per Unit Hours Wage Rate Total voted to pay a $135,000 dividend to stockholders on January 31, 2021. Snowboards 2,200 11.000 28 $ 308,000 Print Done Total labor hours * Variable manufacturing overhead rate Variable manufacturing overhead costs Print Done 11,000 29,000 Print Done Ending Inventories Budget January 31, 2021 For January 2021 Assets Quantity Cost per unit Total Direct materials Wood 1.530 S 83 50.490 Fiberglass 2,030 16.240 Total Liabilities and Stockholders' Equity: Print Done6 Quiz Accounts payable K tures a single model, the Pipe Accounts receivable D21: inal information pertaining to th Budgeted sales anufacturing cost information. Cash Collections from customers Direct manufacturing labor end on January 31. Direct materials dget in addition to the revenue, rating income budget to Fixed manufacturing overhead costs Skis's mar Fixed nonmanufacturing overhead costs ary 31, 2021 by calculating the Ja Inventory Long term liabilities Property, plant and equipment Total Liabilities and Stockholders' Equity lota SearchClick the Cash Budget For Month Ending January 31, 2021 Budgeted sales Cash dividends Collections from customers Depreciation Direct manufacturing labor Direct ! costs of S85 000 at the end of 1 month revenue