Woodlawn Manufacturing produces a variety of industrial valves. The company is preparing its cash budget for the upcoming third quarter. The following transactions are expected to occur: (Click the icon to view the expected transactions.) Requirement 1. Prepare a combined cash budget for Woodlawn Manufacturing for the third quarter, with a column for each month and for the quarter total. (Leave unused cells blank. Use parentheses or a minus sign for negative ending cash balances.) More Info Woodlawn Manufacturing Combined Cash Budget For the Months of July through September July Beginning balance of cash Cash collections Total cash available Cash payments Ending cash balance before financing Financing: Borrowings Repayments Interest Payments a. Cash collections from sales in July, August, and September, are projected to be $91,000, $150,000, and $123,000 respectively. b. Cash payments for the upcoming third quarter are projected to be $149,000 in July, $104,000 in August, and $138,000 in September c. The cash balance as of the first day of the third quarter is projected to be $38,000. d. Woodlawn Manufacturing has a policy that they must maintain a minimum cash balance of $25,000. The company has a line of credit with the local bank that allows it to borrow funds in months that it would not otherwise have a minimum balance of $25,000. If the company has more than $25,000 at the end of any given month, it uses the excess funds to pay off any outstanding line of credit balance. Each month, Woodlawn Manufacturing pays interest on the prior month's line of credit ending balance. The actual interest rate that Woodlawn Manufacturing will pay floats since it is tied to the prime rate. However, the interest rate paid during the budget period is expected to be 1% of the prior month's line of credit ending balance (if the company did not have an outstanding balance at the end of the prior month, then Woodlawn Manufacturing does not have to pay any interest). All line of credit borrowings are taken or paid off on the first day of the month. As of the first day of the third quarter, Woodlawn Manufacturing did not have a balance on its line of credit. Ending cash balance Print Done Enter any number in the edit fields and then click Check Answer. Mason Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first months of the upcoming year show the estimated unit sales of the planters each month to be as follows: (Click the icon to view additional information.) Inventory at the start of the year was 850 planters and 2,100 kg of polypropeylene (a type of plastic). The desired inventory of planters at the end of each month should be equal to 25% of the following month's budgeted sales. Each planter requires 3 kg of polypropylene. The company wants to have 20% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.20 per kilogram. Requirements Requirement 2. Prepare a direct materials budget for the polypropylene for each month in the first quarter of the year, including the kilograms of polypropylene required and the total cost of the polypropylene to be purchased. Start by preparing the direct materials budget through the total quantity needed, and then complete the budget. (Use parentheses or a minus sign for negative beginning inventory balances. Round cost per kilogram to the nearest cent.) Mason Manufacturing Direct Materials Budget For the Months of January through March January February 3,500 3,675 Data Table March Quarter Units to be produced 3,700 10,875 3 3 X Quantity of direct materials needed per unit Quantity needed for production Number of planters to be sold 10,500 11,025 11,100 32,625 2,895 3,400 2,205 2,220 2,895 January ..... February .... March 3,800 12,705 13,245 13,995 35,520 3,300 Plus: Desired ending inventory of direct materials Total quantity needed Less: Beginning inventory of direct materials Quantity to purchase Cost per kilogram April 4,900 May ........ 4,600 Total cost of direct material purchases Print Done Enter any number in the edit fields and then click Chen Anwer