Waterways Corporation has recently acquired a small manufacturing operation in British Columbia that produces one of its mare popular items. This plant will provide these units for resale in retail hardware stores in British Columbia and Alberta. Aecause the budget prepared by the plant was incomplete, Jordan Leigh, Waterways' CFO, was sent to B.C. to overses the plant's budzeting process for the second quarter of 2023. Jordan askad thevarious manazars to collect the following information for preparing the second-quarter budgat. Based on the experience in the home plant, Jordan has suzzested that the B.C. plant kaep 10% of the next month's unit sales in anding inventory. The plant has contracts with some of the major home hardware giants, 50 all sales are on account; 50% of the accounts racaivable is collacted in the manth of sale, and the balance is collacted in the manth after sale. This was the same collaction pattarn as the previous year. The new plant has no bad debts. Direct Materials The combined quantity of diract materials (consisting of matal, plastic, and rubber) used in each unit is 1.30kg. Matal, plastic, and rubber tosether amount to $1.50 per kg. Inventory of combined direct materials on March 31 consisted of 14,365kg. This plant likes to kasp 10% of the materials needed for the next month in its endinz imentory. Fifty percent of the payables is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts payable on March 31 will total \$124,800. Direct Labour Labour requires 15 minutes per unit for completion and is paid at an average rate of $10 per hour. Other Information The cash balance on March 31 will be $136,500, but Waterways has decided it would like to maintain a cash balance of at least $500,000 beginning on April 30. The company has an open line of credit with its bank. The terms of the agreement require borrowing to be in $1,000 increments at 2% interest. Borrowing is considered to be on the first day of the month and repayments and interest payments are on the last day of the month. In May, $900,000 of new equipment to update operations will be purchased. Three months' insurance is prepaid on the first day of the first month of the quarter. For the second quarter of 2023, prepare a cash budget. (Round answers to 0 decimal places, e.g. 2,575. WATERWAYS CORPORATION British Columbia Production Plant Cash Budget for the 2nd Quarter, 2023 May $ For the second quarter of 2023, prepare a cash budget. (Round answers to 0 decimal places, e.g. 2,575.) WATERWAYS CORPORATION British Columbia Production Plant Cash Budget for the 2nd Quarter, 2023 April
