Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process Sales Unit sales for November 2019 113,000 Unit sales for December 2019 102.000 Expected unit sales for January 2020 114,000 Expected unit sales for February 2020 111.000 Expected unit sales for March 2020 115.000 Expected unit sales for April 2020 125.000 Expected unit sales for May 2020 139.000 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, 2019, totaled $183,600 Direct Materials Direct materials cost 80 cents 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. Raw Materials on December 31 2019. totaled 11,370 pounds. 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, 2019 totaled $103,725. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour. Manufacturing Overhead Indirect materials 300 Indirect labor 50c Utilities 50 Maintenance 200 Salaries $42,000 Depreciation $15.100 Property taxes $3.000 Insurance $1.100 per labor hour per labor hour per labor hour per labor hour per month per month per month per month Malaten $200 Manufacturing Overhead Indirect materials 30 Indirect labor 50 Utilities 50c Maintenance 200 Salaries $42.000 Depreciation $15,100 Property taxes $3,000 Insurance $1,100 Maintenance $1,300 per labor hour per labor hour per labor hour per labor hour per month per month per month per month per month Selling and Administrative Variable selling and administrative cost per unit is $1.50. Advertising $14.000 a month Insurance $1,300 a month Salaries $74,000 a month Depreciation $2,800 a month Do Selling and Administrative Variable selling and administrative cost per unit is $1.50. Advertising $14,000 a month Insurance $1,300 a month Salaries $74,000 a month Depreciation $2,800 a month Other fixed costs $2,900 a month Other Information The Cash balance on December 31, 2019, totaled $102,000, but management has decided it would like to maintain a cash balance of at least $800,000 beginning on January 31, 2020. Dividends are paid each month at the rate of $2.30 per share for 4,750 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 9% 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 WATERWAYS CORPORATION Manufacturing Overhead Budget For the First Quarter of 2020 First Quarter February January Variable Costs Indirect Materials 6,822 6,684 Indirect Labor 11,370 11.140 Utilities 11,370 11.140 Maintenance 4,548 4456 Total Variable Cost 34.110 33,420 $ Fixed Costs Sels 420 . Salaries 42,000 42,000 Depreciation 15,100 15.100 Property Taxes 3,000 3,000 Insurance 1.100 1.100 Maintenance 1,300 1,300 Total Fixed Costs 62,500 $ 62,500 $ Variable Costs 102.330 $ 102,330 Predetermined overhead rate for the quarter 164,830 96,100 Total Manufacturing Overhead For the first quarter of 2020, prepare a selling and administrative budget. (Enter per unit expenses rounded to 2 decimal places. Eg. 1.25) WATERWAYS CORPORATION Selling and Administrative Expense Budget First Quarter February January March > $ $ $ > $ $ $ Schedule of Expected Collections from Customers February March January Qui $ $ $ $ Accounts receivable, 12/31/19 January sales February sales March sales Total cash collections $ $ $ For the first quarter of 2020, prepare a schedule for expected payments for materials purchases. (Round answers to decimal places, e.g. 2,520.) Schedule of Expected Cash Payments for Purchases February March January Quat $ $ $ $ $ Accounts payable, 12/31/19 January February March Total payments $ $ $ $ For the first quarter of 2020, prepare a cash budget. (Round answers to decimal places, e.g. 2,520.) WATERWAYS CORPORATION Cash Budget First Quarter January Feb