Sole Corporation is preparing its budget for the coming $2022$ year. The company gathered the following information in preparation for budgeting process.

Sales:

Unit sales for Nov $21$ $$113,000$

Unit sales for Dec $21$ $$102,000$

Expected sales Jan $22$ $$114,000$

Expected sales Feb $22$ $$111,000$

Expected sales March $22$ $$115,000$

Expected sales April $22$ $$125,000$

Expected sales May $22$ $$139,000$

Unit selling price $$12$

Sole Corporation like to keep $10\%$ of the next months unit sales in ending inventory. All sales are on account. $85\%$ of the accounts receivable are collected in the month of the sale and $15\%$ of the account receivable are collected in the month after the sale. Account receivable on Dec $3121$ is $$183,600.$

Direct Materials

Direct Materials cost $\mathrm{.}80$ cents per pound. $2$ pounds of direct material are required to produce each unit.

Sole Corporation like to keep $5\%$ of the materials needed for the next month in its ending inventory. Raw materials on Dec $31$ totaled $$11,370$lbs$.$ Payment for materials is made within $15$days. $50\%$ is paid in the month after purchase. Account payable on Dec $3121$ is $$120,595$

Direct Labor

Labor requires $12$ minutes per unit for completion and is paid at a rate of $$9$ per hour.

Manufacturing Overhead

Indirect Materials $30$ cents per labor hour

Indirect Labor $50$ cents per labor hour

Utilities $50$ cents per labor hour

Maintenance $20$ cents per labor hour

Salaries $$42\mathrm{.}000$ per month

Depreciation $$15,100$ per month

Propery taxes $$3,000$ per month

Insurance $$1,100$ per month

Maintenance $$1,300$ per month

Selling and Administrative

Variable selling and administration cost per unit is $$1\mathrm{.}50$

Advertising $$14,000$ a month

Insurance $$1,300$ a month

Salaries $$74,000$ a month

Depreciation $$2,800$ a month

Other Fixed Cost $$2,900$ a month

Other Information

The cash balance on Dec $3121$ is $$102,000$ but management wants to maintain a cash balance of $$800,000$ beginning in January. Dividends are paid each month at the rate of $$2\mathrm{.}30$ per share for $4,750$ shares outstanding. The company has an open line of credit with State Bank. The terms of the agreement requires borrowing to be in $$1,000$ increments at $9\%$ interest. Sole Corporation borrows on the first day of the month and repays on the last day of the month. A $$450,000$ equipment purchase is planned in February.

Need to complete:

Schedule of Expected Collections from Customers

Schedule of Expected payments for material purchase

Prepare a cash budget