Skulas, inc, manufactures and sells snowboards. Skulas manufactures a single model, the Pipex, In late 2020, Skulas's management accountaht gathered the following data to preparo budgets for January 2021 : (Click the icon to view the budpeted balances and additional information pertaining to the cash budget.) (Click the icen to view the additional variable and foxed manulacturing cost informasion.) (Click the icon to view the materials and labor requirements, the direct. materiats invantories, and additional imventory information.) (Click the icon to view the following selected danuary 2021 budgets: Revenue, Direct material purchases, Direct manufacturing labor cost, Variable manufacturing overhead and Ending inventory.) Read the requirerrents. 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 manulacturing and operating (nonmanufacturing) overhoad Begin by preparing the supporting schedule for the calculation of collection of receivables. Data table Budgeted balances at January 31, 2021 are as follows: Selected budgeted information for December 2020 follows: Data table Budgeted materials purchases 670,000 Customer invoices are payable within 30 days. From past experience, Skulas's accountant projects 35% of invoices will be collected in the month invoiced, and 65% 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. Fixed manufacturing overhead costs include $13,000 of depreciation costs and fixed operating (nonmanufacturing) overhead costs include $14,000 of depreciation costs. Direct manufacturing labor and the remaining manufacturing and operating (nonmanufacturing) overhead costs are paid monthly. All property, plant, and equipment acquired during January 2021 were purchased on credit and did not entail any outfow of cash. There were no borrowings or repayments with respect to long-term liabilities in January 2021. On December 15, 2020, Skulas's board of directors voted to pay a $165,000 dividend to stockholders on January 31,2021. More info Variable manufacturing overhead is $10 per direct manufacturing labor-hour. There are also $24,000 in fixed manufacturing overhead costs budgeted for January 2021. Skulas 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 $260 per sales visit. The marketing plan calls for 35 sales visits during January 2021 . Finally, there are $32,000 in fixed operating (nonmanufacturing) costs budgeted for January 2021. Data table Skulas' CEO expects to sell 1,800 snowboards during January 2021 at an estimated retail price of $550 per board. Further, the CEO expects 2021 beginning inventory of 500 snowboards and would like to end January 2021 with 700 snowboards in stock. Data table Other data inclde: The inventoriable unit cost for ending finished-goods inventory on December 31, 2020, is $240.00. Assume Skulas uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations. Requirements 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. 2. Skulas is interested in maintaining a minimum cash balance of $130,000 at the end of each month. Will Skulas be in a position to pay the $165,000 dividend on January 31 ? 3. Why do Skulas's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? 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. Skulas, inc, manufactures and sells snowboards. Skulas manufactures a single model, the Pipex, In late 2020, Skulas's management accountaht gathered the following data to preparo budgets for January 2021 : (Click the icon to view the budpeted balances and additional information pertaining to the cash budget.) (Click the icen to view the additional variable and foxed manulacturing cost informasion.) (Click the icon to view the materials and labor requirements, the direct. materiats invantories, and additional imventory information.) (Click the icon to view the following selected danuary 2021 budgets: Revenue, Direct material purchases, Direct manufacturing labor cost, Variable manufacturing overhead and Ending inventory.) Read the requirerrents. 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 manulacturing and operating (nonmanufacturing) overhoad Begin by preparing the supporting schedule for the calculation of collection of receivables. Data table Budgeted balances at January 31, 2021 are as follows: Selected budgeted information for December 2020 follows: Data table Budgeted materials purchases 670,000 Customer invoices are payable within 30 days. From past experience, Skulas's accountant projects 35% of invoices will be collected in the month invoiced, and 65% 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. Fixed manufacturing overhead costs include $13,000 of depreciation costs and fixed operating (nonmanufacturing) overhead costs include $14,000 of depreciation costs. Direct manufacturing labor and the remaining manufacturing and operating (nonmanufacturing) overhead costs are paid monthly. All property, plant, and equipment acquired during January 2021 were purchased on credit and did not entail any outfow of cash. There were no borrowings or repayments with respect to long-term liabilities in January 2021. On December 15, 2020, Skulas's board of directors voted to pay a $165,000 dividend to stockholders on January 31,2021. More info Variable manufacturing overhead is $10 per direct manufacturing labor-hour. There are also $24,000 in fixed manufacturing overhead costs budgeted for January 2021. Skulas 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 $260 per sales visit. The marketing plan calls for 35 sales visits during January 2021 . Finally, there are $32,000 in fixed operating (nonmanufacturing) costs budgeted for January 2021. Data table Skulas' CEO expects to sell 1,800 snowboards during January 2021 at an estimated retail price of $550 per board. Further, the CEO expects 2021 beginning inventory of 500 snowboards and would like to end January 2021 with 700 snowboards in stock. Data table Other data inclde: The inventoriable unit cost for ending finished-goods inventory on December 31, 2020, is $240.00. Assume Skulas uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations. Requirements 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. 2. Skulas is interested in maintaining a minimum cash balance of $130,000 at the end of each month. Will Skulas be in a position to pay the $165,000 dividend on January 31 ? 3. Why do Skulas's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? 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