We are in the year 2022, and Cottage Industries is manufacturing baskets. The business has been...

 

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We are in the year 2022, and Cottage Industries is manufacturing baskets. The business has been running for 5 years. Currently they have 1 type of baskets, the lunch box, but due to a high demand they will introduce next year a new type of basket, the Baby shower. Due to this change in the operation of the business, they have hired you to make a budget for the coming year. After sitting down with them on a meeting, here are the information you have gathered, along with the Balance sheet for 2022. Cottage Industries Non-Current assets Workshop Current assets Inventory Trade receivables Cash at bank Total assets Current liabilities Trade payables Loan Capital Add Net Profit Less Drawings Feb. 300 250 March Apr 100,000 Additional Information's: 1. The lunch box currently sales at $14. per unit, but as a 10% rise in salaries is expected on January 1, the selling price will rise accordingly. 2. The selling price for the Baby shower is expected to be $24 per unit. 3. Expected sales are as follows: Units Jan 5,500 12,480 1,000 118,980 A cash budget A Income statement and Balance sheet 2,000 2,700 21,380 95,300 121,380 2,400 118,980 10. Every month, the owner withdraw $200 for personal expenses. 11. Overheads are $500 per month and are paid when they are due 12. Inventory at the end of 2023 is expected to be $6.000 From the information above, please issue: May 0 400 500 June July The Lunch box 350 200 350 The Baby shower 400 500 170 4. A new machine will be purchased on January 1st 2023 for $ 3.000. 5. Cottage Industries paid $300 on January for the machine, and then took a loan for a total amount $2.700. Each payment is of $300 and happens every second month starting on February 1, 2023. 6. The insurance fee are payed monthly, and are $750. 7. The raw material for the lunch box is $10. and $18 for the Baby shower. Purchases are paid cash. 400 350 Aug 350 250 8. Sales are 20% cash and 80% credit paid the month after they occur. 9. Salaries are fixed. $1.000 a month. 80 % is paid the same month and 20% is paid a month in array. Sept. 500 250 Oct. 475 375 Nov. Dec. 375 350 350 300 600 400 We are in the year 2022, and Cottage Industries is manufacturing baskets. The business has been running for 5 years. Currently they have 1 type of baskets, the lunch box, but due to a high demand they will introduce next year a new type of basket, the Baby shower. Due to this change in the operation of the business, they have hired you to make a budget for the coming year. After sitting down with them on a meeting, here are the information you have gathered, along with the Balance sheet for 2022. Cottage Industries Non-Current assets Workshop Current assets Inventory Trade receivables Cash at bank Total assets Current liabilities Trade payables Loan Capital Add Net Profit Less Drawings Feb. 300 250 March Apr 100,000 Additional Information's: 1. The lunch box currently sales at $14. per unit, but as a 10% rise in salaries is expected on January 1, the selling price will rise accordingly. 2. The selling price for the Baby shower is expected to be $24 per unit. 3. Expected sales are as follows: Units Jan 5,500 12,480 1,000 118,980 A cash budget A Income statement and Balance sheet 2,000 2,700 21,380 95,300 121,380 2,400 118,980 10. Every month, the owner withdraw $200 for personal expenses. 11. Overheads are $500 per month and are paid when they are due 12. Inventory at the end of 2023 is expected to be $6.000 From the information above, please issue: May 0 400 500 June July The Lunch box 350 200 350 The Baby shower 400 500 170 4. A new machine will be purchased on January 1st 2023 for $ 3.000. 5. Cottage Industries paid $300 on January for the machine, and then took a loan for a total amount $2.700. Each payment is of $300 and happens every second month starting on February 1, 2023. 6. The insurance fee are payed monthly, and are $750. 7. The raw material for the lunch box is $10. and $18 for the Baby shower. Purchases are paid cash. 400 350 Aug 350 250 8. Sales are 20% cash and 80% credit paid the month after they occur. 9. Salaries are fixed. $1.000 a month. 80 % is paid the same month and 20% is paid a month in array. Sept. 500 250 Oct. 475 375 Nov. Dec. 375 350 350 300 600 400

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1 Preparation of cash budget for Cottage Industries Corttage Industries Budgeted Cash Payments For t... View the full answer