question: prepare a combined cash budget for the months January, February, and March
Ciek Mandring is preparing to master bulget for there are Click the icon to view the data) Click the icon to view period Sales for the first five months of the upongyear are budgeted to be as fol Rama 0 Dalai C 100 d 200 # 22.000 si SIR ! 20 Alcro the h achoending memory of the goods should be the following more in Ofeath o'rta cha 20 r o te month of purchase while the remaindera p riemone The Ending ordrec hod o s produto de Merey w ho convenio cos are 4000 for factory rent, $2,800 for other feed mandating e n d 120 un foro aching ved deprecat ed w ithin which Car e es will be purchased in the upcoming in January. Ciek Mancung w ch .200 whereby's expenditure will be 12.000 and Mary's Chupenditure . 110 expenses of $1.400 per month operating n tre in which they are bored Deprecation and and for the general and budget for the entire water which includes dereito s bark The com can borrow in increments of $1.000 at the beginning of each month fou nding loan balance $100.000 The w on the welcome Cicer Marc a c cess and on the company was the the end of t h e lines to uring the quarter E e Enter any number Check Pont Dore 2 Check And Cicek Manufacturing Cash Collection Budget January February $ 19,920 $ 22,080 $ 57,600 7 9,680 77,520 $ 101,760 $ Cash sales Credits sales March Quarter 22,560 $ 64,560 88,320 225,600 110,880 $ 290,160 Total cash collections Requirement 2. Prepare a production budget. (Hint: Unit sales - Sales in dollars / Selling price per unit.) Unit sales Cicek Manufacturing Production Budget January February March 8,300 9,200 9,400 2,300 2,350 2,425 10,600 11,550 11,825 (2,075) (2,300)_ (2,350) S8,525 9,475' Plus: Desired ending inventory Total needed Less: Beginning inventory Quarter 26,900 2,425 29,325 (2.075) 27,250 9.250 Units to produce 3 Direct Materials Budget January February March Quarter Units to be produced 8,525 9,250 9,475 27,250 x kg of DM needed per unit Quantity (kg) needed for production 25,575 27,750 28,425 81,750 Plus: Desired ending inventory of DM 5,550 5,685 5,700 5,700 Total quantity (kg) needed 31,125 33,435 34,125 87,450 Less: Beginning inventory of DM (5,115) (5,550) (5,685) (5,115) Quantity (kg) to purchase 26,010 27,885 28,440 82,335 x Cost per kg 2.00 $ 2.00 $ 2.00 $ 2.00 52,020 $ 55,770 $ 56,880 $ 164,670 Total cost of DM purchases Requirement 4. Prepare a cash payments budget for the direct material purchases from Requirement 3. (Lear Cicek Manufacturing Cash Payments for Direct Material Purchases Budget January February March Quarter December purchases (from Accounts Payable) $ 42,400.00 $ 42,400.00 January purchases $ 10,404.00 $ 41,616.00 $ 52,020.00 February purchases $ 11,154.00 $ 44,616.00 $ 55,770.00 March nurchases $ 11,376.00 $ 11,376.00 Requirements $ 11,376.00 $ 11,376.00 March purchases $ 52,804.00 $ 52,770.00 $55,992.00 $ 161,566.00 Total cash payments for DM purchases Requirement 5. Prepare a cash payments budget for conversion costs. (Round your answers to the nearest whole dollar. Cicek Manufacturing Cash Payments for Conversion Costs Budget January February March Quarter Variable conversion costs 10,230 $ 11,100 $ 11,370 $ 32,700 Rent (fixed) 4,000 4,000 4,000 12,000 Other fixed MOH 2,900 2,900 2,900 8,700 17,130 $ 18,000 $ 18,270 $ 53,400 Total payments for conversion costs Requirement 6. Prepare a cash payments budget for operating expenses. (Round your answers to the nearest whole dollar Cicek Manufacturing Cash Payments for Operating Expenses Budget January February March Quarter Variable operating expenses $ 9,130 $ 10,120$ 10,340 $ 29,590 Fixed operating expenses 1,400 1,400 4,200 $ 10,530' $ 11,520' 11.740' $ Total payments for operating expenses 33,790 1,4009 Requirement 7. Prepare a combined cash budget. (Leave any unused cells blan for negative cash balances and financing payments. Round your answers to t Cicek Manufacturing Combined Cash Budget Cicek Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Cicek Manufacturing's operations (Click the icon to view the data.) Click the icon to view additional data.) Requirements 0 Data Table Current Assets as of December 31 (prior year): Cash Accounts receivable, net Inventory Property, plant, and equipment, net Accounts payable... Capital stock Retained earnings ...... 4,520 49,000 15,000 121,500 42,400 123,500 22,800 Print Done a. Actual sales in December were $72,000. Selling price per unit is projected to remain stable at $12 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows: January.........$ 99,600 February ........ $ 110,400 March .......... $ 112,800 April............ $ 116,400 May............ $ 106,800 b. Sales are 20% cash and 80% credit. All credit sales are collected in the month following the sale. c. Cicek Manufacturing has a policy that states that each month's ending inventory of finished goods should be 25% of the following month's sales in units). d. Of each month's direct material purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Three kilograms of direct material is needed per unit at $2.00/kg. Ending inventory of direct materials should be 20% of next month's production needs. e. Monthly manufacturing conversion costs are $4,000 for factory rent, $2,900 for other fixed manufacturing expenses, and $1.20 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred. f. Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Cicek Manufacturing will purchase equipment for $6,200 (cash), while February's cash expenditure will be $12,000 and March's cash expenditure will be $16,800. g. Operating expenses are budgeted to be $1.10 per unit sold plus fixed operating expenses of $1,400 per month. All operating expenses are paid in the month in which they are incurred. $16.UU. g. Operating expenses are budgeted to be $1.10 per unit sold plus fixed operating expenses of $1,400 per month. All operating expenses are paid in the month in which they are incurred. h. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $5,700 for the entire quarter, which includes depreciation on new acquisitions. i. Cicek Manufacturing has a policy that the ending cash balance in each month must be at least $4,800. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $100,000. The interest rate on these loans is 2% per month simple interest (not compounded). Cicek Manufacturing pays down on the line of credit balance if it has excess funds at the end of the quarter. The company also pays the accumulated interest at the end of the quarter on the funds borrowed during the quarter. J. The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $11,000 cash at the end of February in estimated taxes
