Question

I provided pictures to help you solve the problem. I only need help with (Chart) (green and red) ( For the first quater of 2017, prepare a casg budget.)

Waterways Corporation is preparing its budget for the coming year, 2017. The first step is to plan for the first quarter of that coming year. Waterways gathered the following information from the managers. Sales Unit sales for November 2016 Unit sales for December 2016 Expected unit sales for January 2017 Expected unit sales for February 2017 Expected unit sales for March 2017 Expected unit sales for April 2017 Expected unit sales for May 2017 112,500 102,100 113,000 112,500 116,000 125,000 137,500 $12 Unit selling price waterways likes to keep 10% of the next month's unit sales in ending inventory. All sales are on account, 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2016, totaled $183,780 Direct Materials Inventory, Dec. 31 5,177.5 lbs 3,883.125 lbs 1,294.375 Ibs 10,355.0 lbs Amount Used per Unit Item Metal Plastic 12 oz6c per oz Rubber 4 oz 1 lb 58c per lb. 5c per oz 2 lbs per unit Metal, plastic, and rubber together are 75c per pound per unit. waterways likes to keep 5% of the materials needed for the next month in its ending inventory, payment for materials is made within 15 days, 50% is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts Payable on December 31, 2016, totaled $120,595. Raw Materials on December 31, 2016, totaled 11,295 pounds. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $8 per hour. Manufacturing Overhead Indirect materials Indirect labor Utilities Maintenance Salaries Depreciation Property taxes Insurance Maintenance 30c per labor hour 50c per labor hour 45 per labor hour 25c per labor hour $42,000 per month $16,800 per month $2,675 per month $1,200 per month $1,300 per month Selling and Administrative Variable selling and administrative cost per unit is $1.60. Advertising Insurance Salaries Depreciation Other fixed costs $15,000 a month $1,400 a month $72,000 a month $2,500 a month $3,000 a month Other Information Selling and Administrative Variable selling and administrative cost per unit is $1.60. Advertising $15,000 a month $1,400 a month $72,000 a month $2,500 a month $3,000 a month Insurance Salaries Depreciation Other fixed costs Other Information The Cash balance on December 31, 2016, totaled $100,500, but management has decided it would like to maintain a cash balance of at least $800,000 beginning on January 31, 2017. Dividends are paid each month at the rate of $2.50 per share for 5,000 shares outstanding. The company has an open line of credit with Romney's Bank. The terms of the agreement requires borrowing to be in $1,000 increments at 8% interest. waterways borrows on the first day of the month and repays on the last day of the month. A $500,000 equipment purchase is planned for February. ps//euugen.wileyplus.co Cash Budget or the First Quarter of First Quarter January February March Quarter 005 800000 00500 Recepts 飞336 飞350900- 1385700 飞072980 llections From Custo otal Available Cas 43688 2150900 . 2185700 ollections From Custome irect Material 6949 7281 4761 irect 8072 8704 832 Manufacturing Overhead 99045 97831 294737 274700 273900 279500 828100 5000 Purchase ividen 12500 71085 1234289 2231274 xcess (Deficiency) Of Available Cash Over Cash Disbursement 665795 916610 1942205 135000 117000 18000 135000 ntere 900 1416800 1416800

Answer 1

Waterways Corporation Cash Budget For the first quarter of 2017
	January	February	March	Quarter
Beginning cash balance	100,500	800,096	819,475	100,500
Add: Receipts
Collection from Customers	1,336,380	1,350,900	1,385,700	4,072,980
Total Available Cash	1,436,880	2,150,996	2,205,175	4,173,480
Less: Cash Disbursements for
Direct Materials	205,304	169,498	172,815	547,617
Direct Labor	180,720	180,560	187,040	548,320
Manufacturing Overhead	81,060	81,030	82,245	244,335
Selling and Administrative	272,200	271,400	277,000	820,600
Equipment Purchase	0	500,000	0	500,000
Dividends	12,500	12,500	12,500	37,500
Total Disbursements	751,784	1,214,988	731,600	2,698,372
Excess ( Deficiency) of Available Cash over Cash Disbursements	685,096	936,008	1,473,575	1,475,108
Financing
Borrowings	115,000			115,000
Repayment		115,000		(115,000)
Interest		1,533		(1,533)
Total Financing	115,000	(116,533)
Ending Cash Balance	800,096	819,475	1,473,575	1,473,575