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 Unit sales for December 2019 Expected unit sales for January 2020 Expected unit sales for February 2020 Expected unit sales for March 2020 Expected unit sales for April 2020 Expected unit sales for May 2020 Unit selling price 114,000 102,000 114,000 113,000 117,000 126,000 138,000 $12 Waterways likces 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 11,390 pounds. Payment for materials is made within 15 days 50% is paid in the month of purchase, and 50% is paid 2019, totaled 11,390 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 $103,735. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour. Manufacturing Overhead Indirect materials 306 Indirect labor 500 Utilities 500 Maintenance 304 Salaries $41.000 Depreciation $18,300 Property taxes $2.400 Insurance $1.300 Maintenance $1.400 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 $150. Advertising $14,000 a month Insurance $1.600 a month Salati $7.000 amanth Selling and Administrative Variable selling and administrative cost per unit is $1.50. Advertising $14,000 a month Insurance $1,600 a month Salaries $71,000 a month Depreciation $2,600 a month Other fixed costs $3,200 a month Other Information The Cash balance on December 31, 2019, totaled $101.000, but management has decided it would like to maintain a cash balance of at least 5800,000 beginning on January 31, 2020. Dividends are paid each month at the rate of $240 per share for 4,890 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 $490.000 equipment purchase is planned for February For the first quarter of 2020, prepare a schedule for expected cash collections from customers. Schedule of Expected Collections from Customers January February March Quarter $ 27.540 0 1.404.000 1,162.800 205,200 0 1.368.000 0 1.152.600 203400 1.356,000 0 1.193.400 1.193.400 1404.000 $ 1.357.100 $ 1.396.000 $ 4.128,000 For the first quarter of 2020, prepare a schedule for expected payments for materials purchases. (Round answers to decimal places, c.8. 2,520.) Schedule of Expected Cash Payments for Purchases January February March Quarter 27.540 91.100 91.100 182.200 90.900 90.900 181.800 4.692 94,692 182.000 185,592 $ Textbook and Media WATERWAYS CORPORATION Cash Budget For the First Quarter of 2020 First Quarter January February Marc