Question
Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows: April May June Sales 53,000 43,000
Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows:
April | May | June | |||||||
Sales | 53,000 | 43,000 | 63,000 | ||||||
Production | 63,000 | 53,000 | 53,000 | ||||||
Cash-related production costs are budgeted at $5 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $50,000 per month. The accounts payable balance on March 31 totals $182,000, which will be paid in April.
All units are sold on account for $11 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $674,000 ($114,000 from February's sales and $560,000 from Marchs sales).
Required:
a. Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation.
b. Prepare a schedule for each month showing budgeted cash receipts for Tilson Corporation
Complete this question by entering your answers in the tabs below.
Required A
Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation.
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Required B
Prepare a schedule for each month showing budgeted cash receipts for Tilson Corporation.
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