Waterways Continuing Problem 23 waterways Corporation is preparing its budget for the coming year, 2017. The fist step is to plan for the first quarter of that coming year. Waterways gatherad the fellowing intonmation from the managers Sales sales for Novamber 2016 112,500 102,100 Unit sales for December 2016 Expected unit soles for January 2017 113,000 Expectad unit saes ror Fabnuary 2017 112,s00 Expected unit seles for Marh 201116,c00 Expected unit sales tor Aonl 2017 Expected unit sas ror May 2017 Unit selling price 125,000 137,500 s12 inventory. All sales arg on account. 85% of the Accour ? Receivable colected in tha month oria and 1596 ofthe Accounts Receivable are collected in the month after sale. Accounts receivable December 31, 2016 totaled wate ways likes to kep 1 % ofthe next month ? unit sales in en ?? 183,780 Direct Materials Item Amount Used per Unit Inventory, Dec. 31 b584 per b. 12 oz 6t per oz Aubber 0 5c per oz Plastic12 3,883,125 lbs Matal, plastie, and rubber togather are 75t per pound per unit aded for the at arth in tsending inventory payment for at erials is made ithin 15 days. saab is paid in the month or purchase, and 50% is paid in the a ter chase Accounts payable on December 31, 2016, totaled $120 595 Ra w Mate alson Wata ways likes to keep S% of the materials December 31, 2016, totaled 11,295 pounds. on Direct Labor Labor requires 12 minutes per unit for complstion and is poid at rate of S8 per hour 304 per labor hour 50 per labor hour sc p labor hour 25t pr laber hour Indirect lebor Salaries Depraciation 42,000 per month 16,800 per month Property taxes $2,675 month $1,200 per month 1,300 per month Veriable selling and acministretive cost per unit is $1.60 Salaries Dopredlation Other fixed cests $15,000 a month $1,400 a month $72,000 a month $2,500a month $3,000 a manth as an open lie The Cash balance on December 31 2016, totaled S 100 SO , but ar o e ent has dec ced? ou a se to tain cash balance of at loost S800 000 be ning on JDnuary 31, 2017. D dends re paid eDch m onth st the rate of $2.50 per share for 5,000 shares outstanding. The oom or of aredit with Romney's Bank. The tems of the agreement requires borrowing to be in $1,000 increments st 8% interest. Waterways borrows on the first day of the month and repays on the lst day of the month. A $500,000 equipment purchase is planned for February For the first quarter o 2017, prepare a sales budget Waterways Continuing Problem 23 waterways Corporation is preparing its budget for the coming year, 2017. The fist step is to plan for the first quarter of that coming year. Waterways gatherad the fellowing intonmation from the managers Sales sales for Novamber 2016 112,500 102,100 Unit sales for December 2016 Expected unit soles for January 2017 113,000 Expectad unit saes ror Fabnuary 2017 112,s00 Expected unit seles for Marh 201116,c00 Expected unit sales tor Aonl 2017 Expected unit sas ror May 2017 Unit selling price 125,000 137,500 s12 inventory. All sales arg on account. 85% of the Accour ? Receivable colected in tha month oria and 1596 ofthe Accounts Receivable are collected in the month after sale. Accounts receivable December 31, 2016 totaled wate ways likes to kep 1 % ofthe next month ? unit sales in en ?? 183,780 Direct Materials Item Amount Used per Unit Inventory, Dec. 31 b584 per b. 12 oz 6t per oz Aubber 0 5c per oz Plastic12 3,883,125 lbs Matal, plastie, and rubber togather are 75t per pound per unit aded for the at arth in tsending inventory payment for at erials is made ithin 15 days. saab is paid in the month or purchase, and 50% is paid in the a ter chase Accounts payable on December 31, 2016, totaled $120 595 Ra w Mate alson Wata ways likes to keep S% of the materials December 31, 2016, totaled 11,295 pounds. on Direct Labor Labor requires 12 minutes per unit for complstion and is poid at rate of S8 per hour 304 per labor hour 50 per labor hour sc p labor hour 25t pr laber hour Indirect lebor Salaries Depraciation 42,000 per month 16,800 per month Property taxes $2,675 month $1,200 per month 1,300 per month Veriable selling and acministretive cost per unit is $1.60 Salaries Dopredlation Other fixed cests $15,000 a month $1,400 a month $72,000 a month $2,500a month $3,000 a manth as an open lie The Cash balance on December 31 2016, totaled S 100 SO , but ar o e ent has dec ced? ou a se to tain cash balance of at loost S800 000 be ning on JDnuary 31, 2017. D dends re paid eDch m onth st the rate of $2.50 per share for 5,000 shares outstanding. The oom or of aredit with Romney's Bank. The tems of the agreement requires borrowing to be in $1,000 increments st 8% interest. Waterways borrows on the first day of the month and repays on the lst day of the month. A $500,000 equipment purchase is planned for February For the first quarter o 2017, prepare a sales budget