Skors, Inc., manufactures and sells snowboards. Skors manufactures a single model, the Pipex. In late 2020, Skors's management accountant gathered the following data to prepare budgets for January 2021: (Click the icon to view the budgeted balances and additional information pertaining to the cash budget.) (Click the icon to view the additional variable and fixed manufacturing cost information.) (Click the icon to view the materials and labor requirements, the direct materials inventories, and additional inventory information.) (Click the icon to view the following selected January 2021 budgets: Revenue, Direct material purchases, Direct manufacturing labor cost, Variable manufacturing overhead and Ending inventory.) Read the requirements. Data table Budgeted balances at January 31, 2021 are as follows: Selected budgeted information for December 2020 follows: Customer invoices are payable within 30 days. From past experience, Skors's accountant projects 30% of invoices will be collected in the month invoiced, and 70% will be collected in the following month. Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with 25% of direct materials purchases paid during the month of the purchase, and 75% paid in the month following purchase. More info Variable manufacturing overhead is $8 per direct manufacturing labor-hour. There are also $20,800 in fixed manufacturing overhead costs budgeted for January 2021. Skors combines both variable and fixed manufacturing overhead into a single rate based on direct manufacturing labor-hours. Variable marketing costs are allocated at the rate of $270 per sales visit. The marketing plan calls for 36 sales visits during January 2021 . Finally, there are $33,000 in fixed operating (nonmanufacturing) costs budgeted for January 2021. Skors' CEO expects to sell 1,300 snowboards during January 2021 at an estimated retail price of $650 per board. Further, the CEO expects 2021 beginning inventory of 600 snowboards and would like to end January 2021 with 600 snowboards in stock. Other data include: The inventoriable unit cost for ending finished-goods inventory on December 31,2020 , is $250.00. Assume Skors uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations. For January 2021 \begin{tabular}{ccccc} & Units & Selling price & \multicolumn{1}{c}{ Total revenues } \\ \hline Snowboards & 1,300$ & 650$ & 845,000 \end{tabular} Direct Materials Purchases Budget For January 2021 \begin{tabular}{|c|c|c|c|c|c|c|} \hline & \multicolumn{4}{|c|}{ Materials } & & \multirow[b]{2}{*}{ Total } \\ \hline & & Wood & & Fiberglass & & \\ \hline \multicolumn{7}{|l|}{ Physical Units Budget } \\ \hline To be used in production & & 11,700 b.f. & & 9,100 yards & & \\ \hline Add target ending inventory & & 1,520 b.f. & & 2,020 yards & & \\ \hline Total requirement & & 13,220 b.f. & & 11,120 yards & & \\ \hline Deduct beginning inventory & & 2,020 b.f. & & 1,020 yards & & \\ \hline Purchases to be made & & 11,200 b.f. & & 10,100 yards & & \\ \hline \multicolumn{7}{|l|}{ Cost Budget } \\ \hline Purchases & $ & 358,400 & $ & 70,700 & $ & 429,100 \\ \hline \end{tabular} Ending Inventories Budget For January 2021 \begin{tabular}{|c|c|c|c|c|c|} \hline & Quantity & \multicolumn{2}{|c|}{ Cost per unit } & \multicolumn{2}{|c|}{ Total } \\ \hline \multicolumn{6}{|l|}{ Direct materials } \\ \hline Wood & 1,520 & $ & 32 & $ & 48,640 \\ \hline Fiberglass & 2,020 & & 7 & & 14,140 \\ \hline \multicolumn{6}{|l|}{ Finished goods } \\ \hline Snowboard & 600 & $ & 633 & - & 379,800 \\ \hline Total ending inve & & & & $ & 442,580 \\ \hline \end{tabular} Revenue Budget For January 2021 \begin{tabular}{ccccr} & Units & Selling price & \multicolumn{2}{c}{ Total revenues } \\ \hline Snowboards & 1,300$ & 650$ & $45,000 \end{tabular} Direct Materials Purchases Budget For January 2021 \begin{tabular}{|c|c|c|c|c|c|c|} \hline & \multicolumn{4}{|c|}{ Materials } & & \multirow[b]{2}{*}{ Total } \\ \hline & & Wood & & Fiberglass & & \\ \hline \multicolumn{7}{|l|}{ Physical Units Budget } \\ \hline To be used in production & & 11,700 b.f. & & 9,100 yards & & \\ \hline Add target ending inventory & & 1,520 b.f. & & 2,020 yards & & \\ \hline Total requirement & & 13,220 b.f. & & 11,120 yards & & \\ \hline Deduct beginning inventory & & 2,020 b.f. & & 1,020 yards & & \\ \hline Purchases to be made & & 11,200 b.f. & & 10,100 yards & & \\ \hline \multicolumn{7}{|l|}{ Cost Budget } \\ \hline Purchases & $ & 358,400 & $ & 70,700 & $ & 429,100 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{10}{|c|}{ Direct Manufacturing Labor Costs Budget } \\ \hline \multicolumn{10}{|c|}{ For January 2021} \\ \hline & & \multirow{2}{*}{OutputUnitsProduced} & \multirow{2}{*}{DMLHperUnit} & \multirow{2}{*}{\multicolumn{2}{|c|}{TotalHours}} & \multirow{2}{*}{\multicolumn{2}{|c|}{HourlyWageRate}} & \multirow{2}{*}{\multicolumn{2}{|c|}{ Total }} \\ \hline & & & & & & & & & \\ \hline Snowboards & & 1,300 & 8 & 10,40 & & $ & 27 & $ & 280,800 \\ \hline Total labor hours & x & Variable man & acturing ov & d rate & = & Varis & le manuf & cturin & g overhead costs \\ \hline 10,400 & x & & 8 & & = & $ & & 83,20 & \\ \hline \end{tabular} Ending Inventories Budget For January 2021 \begin{tabular}{|c|c|c|c|c|c|} \hline \multirow{2}{*}{ Direct materials } & \multirow[t]{2}{*}{ Quantity } & \multicolumn{2}{|c|}{ Cost per unit } & \multicolumn{2}{|r|}{ Total } \\ \hline & & & & & \\ \hline Wood & 1,520 & $ & 32 & $ & 48,640 \\ \hline Fiberglass & 2,020 & & 7 & & 14,140 \\ \hline \multicolumn{6}{|l|}{ Finished goods } \\ \hline Snowboard & 600 & $ & 633 & - & 379,800 \\ \hline Total ending inve & & & & $ & 442,580 \\ \hline \end{tabular} 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. Next prepare the supporting schedule for the payments of accounts payable. Prepare the supporting schedule for disbursements for fixed manufacturing and operating (nonmanufacturing) 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.) Skors, Inc. Cash Budget For Month Ending January 31, 2021 Cash balance, beginning Add receipts Total cash available for needs Deduct disbursements Requirement 2. Skors is interested in maintaining a minimum cash balance of $140,000 at the end of each month. Will Skors be in a position to pay the $125,000 dividend on January 31 ? be in a position to pay the $125,000 dividend on January 31 . Requirement 3. Why do Skors's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? Skors's managers prepare a cash budget in addition to the operating income budget profitable on an accrual accounting basis, Skors's managers may then need to Building a profitable operating plan that adequate cash will be available. Requirement 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