Central Perks, Inc. is completing their cash budget for the following year. Central Perks, Inc. is a manufacturer of metal picture frames. The firm's two product lines are designated as S (small frames; 5 x 7 inches) and L (large frames; 8 x 10 inches). Here is the provided budget information:

1. Sales in the fourth quarter of 20x0 are expected to be 45,000 S frames and 35,000 L frames. Over the next year, sales in each product line will grow by 5,000 units each quarter over the previous quarter. For example, S frame sales in the first quarter of 20x1 are expected to be 50,000 units.

2. Central Perks, Inc.'s sales history indicates that 60 percent of all sales are on credit, with the remainder of the sales in cash. The company's collection experience shows that 80 percent of the credit sales are collected during the quarter in which the sale is made, while the remaining 20 percent is collected in the following quarter. (For simplicity, assume the company is able to collect 100 percent of its accounts receivable.)

3. The S frame sells for $12, and the L frame sells for $18. These prices are expected to hold constant

throughout 20x1.

4. Total manufacturing cost per unit is $8 for the S frame and $12 for the L frame. All manufacturing cost purchases are made on account, and 80 percent of each quarter's purchases are paid in cash during the same quarter as the purchase. The other 20 percent is paid in the next quarter. Units sold equal units purchased.

5. Selling and administrative expenses, all paid in cash, are $100,000 per quarter.

6. Dividend payments are $50,000 per quarter.

7. The beginning cash balance for Q1 of 20X1 is $105,000.

Prepare the following for each of the four quarters of 20x1:

1. Sales budget

2. Cash receipts budget

3. Cash disbursements budget

4. Summary cash budget

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Sales figures 20X0 Q4 20X1 Q1 Sframe unit sales 45,000 50,000 S sales price $ 12 $ 12 L frame unit sales 35,000 40,000 sales price $ 18 $ 18 Collections 40% Percent of sales made for cash in the quarter of sale 60% Percent of sales made on credit 80% of current quarter's credit sales 20% of previous quarter's credit sales Purchases Sframe unit purchases Smanufacturing cost p Lframe unit purchases manufacturing cost pe Other expenses 20X0 Q4 20X1 Q1 45,000 50,000 $8 $8 35,000 40,000 $12 $12 80% of current quarter's purchases paid in the current quarter 20% of previous quarter's purchases paid in the current quarter Selling and admin. expenses Payment of dividends Beginning cash balance for Q1 of 20X1 Prepare the following: 1 Sales budget 2 Cash receipts budget $100,000 per quarter $ 50,000 per quarter $105,000 3 Cash disbursements budget 4 Summary cash budget Sales figures 20X0 Q4 20X1 Q1 Sframe unit sales 45,000 50,000 S sales price $ 12 $ 12 L frame unit sales 35,000 40,000 sales price $ 18 $ 18 Collections 40% Percent of sales made for cash in the quarter of sale 60% Percent of sales made on credit 80% of current quarter's credit sales 20% of previous quarter's credit sales Purchases Sframe unit purchases Smanufacturing cost p Lframe unit purchases manufacturing cost pe Other expenses 20X0 Q4 20X1 Q1 45,000 50,000 $8 $8 35,000 40,000 $12 $12 80% of current quarter's purchases paid in the current quarter 20% of previous quarter's purchases paid in the current quarter Selling and admin. expenses Payment of dividends Beginning cash balance for Q1 of 20X1 Prepare the following: 1 Sales budget 2 Cash receipts budget $100,000 per quarter $ 50,000 per quarter $105,000 3 Cash disbursements budget 4 Summary cash budget