Symons Manufacturing in the final stages of preparing its master budget for 2021. 1 Required: 1 The following data has been provided regarding sales and the expected collection pattern 7 Budgeted sales: Budgeted sales in units Sales in dollars January February March April 9,000 10,500 11.000 10,000 $108.XX $126,000 $132.0005120.000 10 11 12 13 Cash sales Credit sales (sales on account) 25% 75% The collection pattern for the credit sales has traditionally been as follows: 15 16 17 18 19 Month of sale First month following sale Second month following sale 20% 50% 30% 20 27 Calculate the total expected cash collections for the month of April. (5 marks) 22 23 24 Symons Manufacturing Schedule of Expected Cash Collections Rudamin Now CUCK HERE TO SAVE YOUR WORK Calculate the total expected cash collections for the month of April. (5 marks) 24 2 Symons Manufacturing Schedule of Expected Cash Collections For the Month ending April 30, 2021 28 29 30 31 32 33 34 Total expected cash collections for April 2. 35 What would be the budgeted value of the accounts receivable on the April 30th balance sheet (statement of financial positice marks) 36 37 38 39 40 Accounts receivable, April 30th 42 3. The following additional information has been provided: Budgeting - 3 New KAN hp Accounts receivable, Apoth The following additional information has been provided a) Raw material purchases are budgeted as follows: 1.1 Raw material purchases 46 January February March April $93.180 $1059205102.59.40 Raw material purchases are paid for in the following month 48 49 b) Monthly expenses are budgeted as follows: 50 51 52 53 54 Direct labour Variable overhead Fixed overhead (includes $16,000 of depreciation) Sales commissions (paid in the current month) Advertising $22.400 per month 102% of direct labour cost $30,000 8% of sales $12,600 55 56 57 58 c) The company will purchase and pay for equipment in following months: February March 59 60 $25,000 $16,000 Cash dividends in the amount of $15,000 are paid in January, April, July, and October. This has been the policy for the new Years. Prepare the cash budget for April and determine if there is an excess or a deficiency. The beginning ish balance for Apk $15,000. (11 marks) Symons Manufacturing Cash Budget For the Month ending April 30, 2021 68 69 Beginning cash balance Total cash available 70 71 72 73 74 75 76 77 18 79 80 81 Cintialan Budgeting - 3 New up Excess (deficiency) 4. 14 The company must maintain a minimum cash balance of $12,000 each month. Money is bowed at the beginning of the month There are no loans currently outstanding, Interest is paid in the following month and the rate is 6% per year. Based this Information and the final answer for part 3, determine the amount that needs to be borrowed, not including interest, to ensure that there is at least $12,000 on hand at the end of April. If no borrowing is required, indicate this and provide an appropriate explanation why (2 marks) 816 87 88 Amount to be borrowed 89 Budgeting - 3 New
