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Question 2 (16 marks) Jolly Jumpers Inc. has set up a sales budgets for the first quarter of 2023. The company reports actual sales

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Question 2 (16 marks) Jolly Jumpers Inc. has set up a sales budgets for the first quarter of 2023. The company reports actual sales for the last two months of 2022 and projected sales revenue for the first quarter of 2023 as follows: November 2022, $275,000 December 2022, $350,000 January 2023, $180,000 February 2023, $150,000 March 2023, $200,000 Cash sales account for 45% of total sales, 10% of sales are paid visa and 5% are paid with MasterCard. The remaining is on open account (Accounts Receivable) Banking fees charged for visa are 3% and 2% for MasterCard Accounts receivable - 75% is collected in the month following the sale and 25% is collected in the second month For January 2023, the company expects to purchase $70,000 in direct materials. The company will pay 30% for the purchase in the month purchased with the remainder paid next month. The company had purchased $100,000 worth of direct materials in December of 2022. The company also expects to incur a direct labour cost of $130,000. The company will pay half in January and the rest in February. The company had paid all of December labour costs by the end of month. The company is projecting to pay $128,000 in manufacturing overhead. The company is planning to pay this is in full in January except for the depreciation expense of $40,000. The December 31, 2022, ending cash balance was $9,000. Required Prepare a cash budget for the month of January 2023. Ensure to report all cash receipts and cash disbursements.

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