Question 10 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. 200 2000 114.000 12000 ore 2020 25.000 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 of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2019, totaled $183,600. 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 11,370 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 $103,725. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour. Manufacturing Overhead Indirect materials 304 So 50 204 labor hour b or hour per bor hour hour Depreciation $15,00 $3.000 per month m 1.300 per month Selling and Administrative Viewing and cost pris $14.000 m 1400 mon 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 $2.30 per share for 4,750 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 9% 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 Your answer is correct. For the first quarter of 2020, prepare a schedule for expected cash collections from customers. March Schedule of Expected Collections from Customers January February Quarter Accounts receivable, 12/31/19 S1183600 lol $0 $183600 January sales 1162800 February sales 11998001332000 March sales T11730001173000 Total cash collections $11346400 $1337400 $(1372800 $4056600 10 1368000 432200 Attempts: 1 of 3 u * Question 10 For the first quarter of 2020, prepare a schedule for expected payments for materials purchases. (Round answers to 0 decimal places, e.g. 2,520.) Schedule of Expected Cash Payments for Purchases January February March Accounts payable, 12/31/19 Quarter January February March Total payments
