Other Information The Cash balance on December 31, 2019, totaled $101,000, but management has decided it would
Question:
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 $800,000 beginning on January 31, 2020. Dividends are paid each month at the rate of $2.40 per share for 5,340 shares outstanding. The company has an open line of credit with Romney’s Bank. The terms of the agreement require borrowing to be in $1,000 increments at 9% interest. Waterways borrow on the first day of the month and repay on the last day of the month. A $460,000 equipment purchase is planned for February
a)For the first quarter of 2020, prepare a sales budget.
b)For the first quarter of 2020, prepare a production budget.
c)For the first quarter of 2020, prepare a direct materials budget. (Round cost per pound to 2 decimal places, e.g. 0.25 and all other answers to 0 decimal places, e.g. 2,520.)
d) For the first quarter of 2020, prepare a direct labor budget. (Round time per unit to nearest hour, e.g. 30 minutes will be rounded to 0.5 hours)
e) For the first quarter of 2020, prepare a manufacturing overhead budget. (Round overhead rate to 2 decimal places, e.g. 5.25 and all other answers to 0 decimal places, e.g. 2,520. List Variable Costs first.)
f) For the first quarter of 2020, prepare a selling and administrative budget. (Enter per unit expenses rounded to 2 decimal places. E.g. 1.25)
g) For the first quarter of 2020, prepare a schedule for expected cash collections from customers.
h) For the first quarter of 2020, prepare a schedule for expected payments for materials purchases. (Round answers to 0 decimal places, e.g. 2,520.)
j) For the first quarter of 2020, prepare a cash budget. (Round answers to 0 decimal places, e.g. 2,520.)
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield