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The Gavin Tire Co manufactures racing tires for bicycles. Gavin sells tires for $70 each. Gavin is planning for the next year by developing a
The Gavin Tire Co manufactures racing tires for bicycles. Gavin sells tires for $70 each. Gavin is planning for the next year by developing a master budget by quarters. Gavin's balance sheet for Dec 31, 2018, follows:
A. Prepare the Schedule of cash Payments and Cash budget:
1st | 2nd | 3rd | 4th | total | |||
| |||||||
1 | 2 | 3 | 4 | total | |||
cash payments | |||||||
direct materials: | |||||||
Acc Pay bal, Dec 31,2018 | |||||||
1st qtr-qtr 1 direct material purchases paid in qtr 1 | |||||||
1st qtr- qtr 1 DMP paid in qtr 2 | |||||||
2nd Qtr - qtr 2 DMP in qtr 2 | |||||||
2nd qtr- qtr 2 DMP paid in qtr 3 | |||||||
3rd qtr- qtr 3 DMP paid in qtr 3 | |||||||
3rd qtr- qtr 3 DMP paid in qtr 4 | |||||||
4th Qtr- paid in qtr 4 | |||||||
TOTAL payments for DM | |||||||
DIrect Labor | |||||||
TOTAL payments for DL |
ETC
B. Prepare Gavins annual financial budget for 2019, including budgeted income statement and budgeted balance sheet.
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