Question

i am missing a few parts in each chart and unsure how to find them. thank you for your help!

How are the budgeted Income statements for the second quarter of 2016 for SeaTech, Inc. Cost of pood Gross profit Operating expenses Operating income $35.2005 49.500 59200 Includes all product costs (le, direct materials, direct labor, and manufacturing overhead Tincludes all period costs (le, seling, general, and administrative expenses). The company expects about 30% of sales to be cash transactions of sales on account, 60% are expected to be collected in the first month after the sale is made, and 40% are expected to be collected in the second month after sale. Depreciation, insurance and property tres represent $19.200 of the estimated money foods sold and $12.800 of the stated monthly operating expenses. The w al Insurance premium is paid in January, and the annual property taxes are paid in August of the remainder of the cost of goods sold and operating expenses. 80% we expected to be paid in the month in which they are incurred, and the balance is expected to be paid in the foowing month Current assets as of April 1, 2016, consist of cash of $22.400 and accoun t of $167.776 March a nd $71.904 from Februarycred Current l es as of April 1 con of $28.800 of accounts payable for products incurred in March 37 360 of cerved for operating expenses incurred in March and a 564.000, 134, 120 payable that is due on April 17, 2016 An estimated income tax payment of 564,000 will be made in May. The regular quarterly vidend of $25.600 is expected to be declared in May and paid in June. Cap p enditures amounting to ST SOWIE made in April Required a. Complete the monthly cash budgets for the second quarter of 2016 using the following format. Note that the ending cash balance for June is provided as a check figure. (Use 360 days year for calculations.) SEATECH, INC Cash Budget For the month of April, May, and June, 2016 $ 22400 From credit sales made 67110 Way 2017052790 Cash Di For cost of a 36.160

Answer 1

Answer with working is given below

For Bank borrowing 9% interest rate is presumed on yearly basis

a) SEATECH INC. Cash Budget For the Month of April, May and June, 2016 April $22,400 May $6,277 June Beginning cash balance Cash Receipts From Cash sales made in current month From Credit Sales made in $1,387 $81,600 $67,200 $91,200 February March $71,904 $100,666 $67,110 $94,080 April May Total Cash available $62,720 $114,240 $262,170$249,067 $269,547 Cash Disbursements for COGS/Operating Expenses March April May $36,160 $125,440 $31,360 $152,320 $38,080 $170,240 June For payment of note payable and interest For Payment of Income Tax For capital expenditure For Payment of dividend Total Disbursements $66,773 $64,000 $27,520 $25,600 $255,893$247,680$233,920 $6,277 Ending Cash Balance $1,387 $35,627 SEATECH INC. b) Cash Budget For the Month of April , May and June, 2016 April $22,400 May $18,500 June Beginning cash balance Cash Receipts $18,500 $67,200 $81,600 From Cash sales made in current month From Credit Sales made in $91,200 February March $71,904 $100,666 $67,110 $94,080 April May Total Cash available $62,720 $114,240 $262,170 $261,290 286,660 Cash Disbursements for COGS/Operating Expenses $36,160 $125,440 March |April May $31,360 $152,320 $38,080 $170,240 June For payment of note payable and interest For Payment of Income Tax For capital expenditure For Payment of dividend Total Disbursements $66,773 $64,000 $27,520 $25,600 $255,893$247,680$233,920 Excess (Deficiency )of cash available over Disbursements $13,610 $4,890 $6,277 $52,740 Borrowings Repayments Interest $12,223 -$17,113 -$220 $35,407 $18,500 $18,500 Ending balance Interest on note payable Balance of Note payable Interest at 13% for 120 days Total repayment in April $64,000.00 $2,773.00 $66,773.00 Interest Borrowing Interest on Short term borrowing 9% April Month May Month Total $12,223.40 $4,889.60 $17,113.00 $183.35 Interest for 2 months $36.67 Interest for 1 month $220.02 Note it is assumed Interest rate of 9% is per annum Working Notes April $224,000 $272,000 $304,000 $67,200 $156,800 $190,400 $212,800 May June Sales $81,600 $91,200 Cash Sales Credit Sales $153,600 $19,200 $182,400 $201,600 $19,200 $163,200 COGS Depreciation, insurance and property taxes Net COGS $19,200 $134,400 $182,400 $40,000 $12,800 $27,200 Operating Expenses Depreciation, insurance and property taxes Net Operating Expense $43,200 $35,200 $12,800 $12,800 $22,400 $30,400 $156,800 $190,400 Total COGS and Operating Expense $212,800