AutoTech Inc. manufactures a coil for motor vehicles. The Manager of the company has assembled the...

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AutoTech Inc. manufactures a coil for motor vehicles. The Manager of the company has assembled the following information to assist in preparing budgets for 2024. Budgeted information form January to April are as follows: Unit sales Sales January February March 8,500 units 6,000 units 7,500 units $637,500 $450,000 $562,500 April 9,500 units $712,500 Material purchases $244,000 $184,000 $220,000 $268,000 Selling expenses $31,875 $22,500 $28,125 $35,625 Admin expenses (including $2,000 depreciation per month) $12,125 $11,500 $11,875 $12,375 Additional Information 1 The sales price of the coil is $75. The desired ending finished goods inventory for each month is 25% of the following month's sales. 2 All of the company's sales are made on a credit basis. All payments received from customers in the month of sale receive a 5% discount. 75% of the accounts receivable is collected in the month of sale, 20% are collected in the month following the sale, and the remainder is not collectable. 3 60% of the material purchases are paid in the month of purchase, and the remainder is paid in the following month. All other expenses are paid in the same month in which they are incurred. 4 Cash balance as at 1 February 2024 will be $25,000. Required: (a) Prepare a production budget for February and March. (b) Prepare a schedule of cash receipts for February and March. (c) Prepare a schedule of cash payments for February and March. (d) Prepare a cash Budget for February and March. Total marks (6 marks) (4 marks) (4 marks) (6 marks) (20 marks) AutoTech Inc. manufactures a coil for motor vehicles. The Manager of the company has assembled the following information to assist in preparing budgets for 2024. Budgeted information form January to April are as follows: Unit sales Sales January February March 8,500 units 6,000 units 7,500 units $637,500 $450,000 $562,500 April 9,500 units $712,500 Material purchases $244,000 $184,000 $220,000 $268,000 Selling expenses $31,875 $22,500 $28,125 $35,625 Admin expenses (including $2,000 depreciation per month) $12,125 $11,500 $11,875 $12,375 Additional Information 1 The sales price of the coil is $75. The desired ending finished goods inventory for each month is 25% of the following month's sales. 2 All of the company's sales are made on a credit basis. All payments received from customers in the month of sale receive a 5% discount. 75% of the accounts receivable is collected in the month of sale, 20% are collected in the month following the sale, and the remainder is not collectable. 3 60% of the material purchases are paid in the month of purchase, and the remainder is paid in the following month. All other expenses are paid in the same month in which they are incurred. 4 Cash balance as at 1 February 2024 will be $25,000. Required: (a) Prepare a production budget for February and March. (b) Prepare a schedule of cash receipts for February and March. (c) Prepare a schedule of cash payments for February and March. (d) Prepare a cash Budget for February and March. Total marks (6 marks) (4 marks) (4 marks) (6 marks) (20 marks)