Waterways Corporation is preparing its budget for the coming year, 2022. The first step is to plan for the first quarter of that coming year. Waterways gathered the following information from the managers.

Sales

Unit sales for November 2021 112,000 Unit sales for December 2021 103,000 Expected unit sales for January 2022 112,000 Expected unit sales for February 2022 111,000 Expected unit sales for March 2022 117,000 Expected unit sales for April 2022 125,000 Expected unit sales for May 2022 138,000 Unit selling price $12

Waterways likes to keep 10% of the next month's unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2021, totaled $185,400.

Direct Materials

Direct materials cost 80 per pound. Two pounds of direct materials are required to produce each unit.

Waterways likes to keep 5% of the materials needed for the next month in its ending inventory. Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts Payable on December 31, 2021, totaled $104,300. Raw Materials on December 31, 2021, totaled 11,190 pounds.

Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $6 per hour.

Manufacturing Overhead Indirect materials 30 per labor hour Indirect labor 50 per labor hour Utilities 40 per labor hour Maintenance 20 per labor hour Salaries $41,000 per month Depreciation $16,600 per month Property taxes $2,500 per month Insurance $1,100 per month Maintenance $1,200 per month

Selling and Administrative Variable selling and administrative cost per unit is $1.60.

Advertising $14,000 a month Insurance $1,200 a month Salaries $74,000 a month Depreciation $2,600 a month Other fixed costs $3,000 a month

Other Information

The Cash balance on December 31, 2021, totaled $102,000, but management has decided it would like to maintain a cash balance of at least $800,000 beginning on January 31, 2022. Dividends are paid each month at the rate of $2.70 per share for 4,690 shares outstanding. The company has an open line of credit with Romney's Bank. The terms of the agreement requires borrowing to be in $1,000 increments at 6% interest. Waterways borrows on the first day of the month and repays on the last day of the month. A $450,000 equipment purchase is planned for February.

Instructions

For the first quarter of 2022, do the following.

(a) sales budget.

(b production budget.

(c) direct materials budget. (Round to nearest dollar)

(d) direct labor budget. (For calculations, round to the nearest hour.)

(e) manufacturing overhead budget. (Round amounts to the nearest dollar.)

(f) selling and administrative budget.

(g) schedule for expected cash collections from customers.

(h) schedule for expected payments for materials purchases. (Round totals to nearest dollar)

(i) cash budget.

specifically, the cash budget, I would like to know how to treat this statement: the terms of the agreement requires borrowing to be in $1,000 increments at 8% interest. Waterways borrows on the first day of the month and repays on the last day of the month.

E myNSCAD Home - M. E Etsy - Shopping basket II Investment Executive Group assignment Question 2 of 5 > - /1 . .. WATERWAYS CORPORATION Sales Budget For the Month Ending March 2022 March 2022 January For the First Quarter of 2022 March Quarter