Question

( please answer all the questions) The Trolley Trolley Toy Company manufactures toy building block sets for children. Trolley Trolley is planning for 2019 2019 by developing a master budget by quarters. Trolley Trolley​'s balance sheet for December December 31 31​, 2018 2018​, ​follows:

Trolley Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash 58,000 Accounts Receivable 22,000 Raw Materials Inventory 1,200 5,400 Finished Goods Inventory Total Current Assets 86,600 Property, Plant, and Equipment Equipment 142,000 (47,000) 95,000 Less: Accumulated Depreciation 181,600 Total Assets Liabilities Current Liabilities: 8,000 Accounts Payable Stockholders' Equity Common Stock, no par 120,000 53,600 Retained Earnings 173,600 Total Stockholders' Equity 181,600 Total Liabilities and Stockholders' Equity

Answer 1

Cash Budget
	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Beginning Cash Balance	$    58,000.00	$       55,904.00	$ 1,44,548.00	$ 2,45,651.00
Cash Receipts	$    95,080.00	$    1,33,830.00	$ 1,47,330.00	$ 1,60,830.00
Cash available	$ 1,53,080.00	$    1,89,734.00	$ 2,91,878.00	$ 4,06,481.00
Cash Payments
Capital Expenditures	$    45,000.00
Purchases of Direct Materials	$    17,617.00	$         9,844.00	$    10,560.00	$      11,428.00
Direct Labor	$      6,552.00	$         5,796.00	$      6,336.00	$        6,876.00
Manufacturing Overhead	$      9,137.00	$         8,381.00	$      8,921.00	$        9,461.00
Selling and Administrative Expenses	$    16,370.00	$       16,640.00	$    16,910.00	$      17,180.00
Income Taxes	$      3,500.00	$         3,500.00	$      3,500.00	$        3,500.00
Interest Expense		$               25.00
Total Cash Payments	$    98,176.00	$       44,186.00	$    46,227.00	$      48,445.00
Ending Cash Balance before financing	$    54,904.00	$    1,45,548.00	$ 2,45,651.00	$ 3,58,036.00
Projected cash excess (deficiency)	$    55,000.00	$       55,000.00	$    55,000.00	$      55,000.00
Finanicng	$          -96.00	$       90,548.00	$ 1,90,651.00	$ 3,03,036.00
Borrowing	$      1,000.00	$                     -	$                  -	$                    -
Principal Repayments	$                  -	$         1,000.00	$                  -	$                    -
Ending Cash Balance after financing	$    55,904.00	$    1,44,548.00	$ 2,45,651.00	$ 3,58,036.00