Solution a:
Schedule of expected cash collection | |||||
Particulars | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Year |
Accounts receivables beginning | $65,000.00 | $65,000.00 | |||
Cash received for Q1 Sale | $236,250.00 | $78,750.00 | $315,000.00 | ||
Cash received for Q2 Sale | $367,500.00 | $122,500.00 | $490,000.00 | ||
Cash received for Q3 Sale | $551,250.00 | $183,750.00 | $735,000.00 | ||
Cash received for Q4 Sale | $315,000.00 | $315,000.00 | |||
Budgeted Cash Collection | $301,250.00 | $446,250.00 | $673,750.00 | $498,750.00 | $1,920,000.00 |
Solution b:
Production Budget | ||||||
Particulars | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Year | Quarter 1, next year |
Budgeted sales unit | 45000 | 70000 | 105000 | 60000 | 280000 | 85000 |
Add: ending inventory (30% of next quarter sales) | 21000 | 31500 | 18000 | 25500 | 25500 | 28500 |
Less: Beginning inventory | 12000 | 21000 | 31500 | 18000 | 12000 | 25500 |
Estimated production unit | 54000 | 80500 | 91500 | 67500 | 293500 | 88000 |
Solution c:
Budgeted Cost of raw material purchases | |||||
Particulars | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Year |
Budgeted Production units | 54000 | 80500 | 91500 | 67500 | 293500 |
Raw material per unit (In Pounds) | 5 | 5 | 5 | 5 | 5 |
Total requirement of raw materials | 270000 | 402500 | 457500 | 337500 | 1467500 |
Add: Desired ending inventory (10% of next quarter production needs) | 40250 | 45750 | 33750 | 44000 | 44000 |
Less: Beginning inventory | 23000 | 40250 | 45750 | 33750 | 23000 |
Budgeted purchase units of raw material (In Pounds) | 287250 | 408000 | 445500 | 347750 | 1488500 |
Raw material cost per pound | $0.80 | $0.80 | $0.80 | $0.80 | $0.80 |
Budgeted cost of purchases | $229,800.00 | $326,400.00 | $356,400.00 | $278,200.00 | $1,190,800.00 |
Solution d:
Schedule of expected cash disbursement for merchandise purchases | |||||
Particulars | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Year |
Accounts Payable, Beginning | $81,500.00 | $81,500.00 | |||
Q1 Purchases | $137,880.00 | $91,920.00 | $229,800.00 | ||
Q2 Purchases | $195,840.00 | $130,560.00 | $326,400.00 | ||
Q3 Purchases | $213,840.00 | $142,560.00 | $356,400.00 | ||
Q4 Purchases | $166,920.00 | $166,920.00 | |||
Total payments | $219,380.00 | $287,760.00 | $344,400.00 | $309,480.00 | $1,161,020.00 |
Solution e:
Yes, this is a potential problem as budgeted production for quarter 2 and 3 is exceeding 80000 units.
Requirement 2: The company has just hired a new marketing manager who insists that unit sales can be dramatically...
Requirement 2: The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Year 2 Quarter Year 3 Quarter Data Budgeted unit sales Selling price per unit 50, eee $7 65, eee 110,eee 70, eee 90, eee 180, eee 1 Chapter 8: Applying Excel 3 Data Year 3 Quarter 5 Budgeted...
Requirement 2: The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Year 2 Quarter Year 3 Quarter Data Budgeted unit Sales Selling price per unit 50,000 70.000 115,000 5,000 85,000 100.000 D Chapter 8: Applying Excel Data Year 3 Quarter 5 Budgeted unit sales 50.000 70,000 115,000 60,000 $5,000...
Requirement 2: The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Year 3 Quarter Year 2 Quarter Data 1 2 Budgeted unit sales 45,000 65,000 115,000 70,000 Selling price per unit $ 7 80,000 100,000 | 1 Chapter 8: Applying Excel Data 1 45,000 2 65,000 3 115,000 Year...
Requirement 2: The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Year 2 Quarter Year 3 Quarter Data 1 2 3 4 1 2 Budgeted unit sales 45,000 65,000 110,000 70,000 80,000 90,000 Selling price per unit $7 a. What are the total expected cash collections for the year...
Requirement 2: The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Year 2 Quarter Year 3 Quarter Data 1 2 3 1 2 Budgeted unit sales 45,000 70,000 115,000 65,000 90,000 90,000 Selling price per unit ST A B C D E F G 1 Chapter 8: Applying Excel...
Requirement 2: The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Year 2 Quarter Year 3 Quarter Data 1 2 3 4 1 2 Budgeted unit sales 50,000 65,000 115,000 75,000 90,000 100,000 Selling price per unit $7 1 2 3 4 5 6 7 8 9 10 11...
The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Year 2 Quarter Year 3 Quarter Data 1 2 3 4 1 2 Budgeted unit sales 50,000 70,000 105,000 75,000 80,000 95,000 Selling price per unit $7 Chapter 8: Applying Excel Data Year 3 Quarter 1 2 3 4 1...
The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Year 2 Quarter Year 3 Quarter Data 1 2 3 4 1 2 Budgeted unit sales 50,000 65,000 120,000 65,000 80,000 90,000 Selling price per unit $7 1 2 3 4 5 6 7 8 9 10 11 12 13...
The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Year 2 Quarter Year 3 Quarter Data 1 2 3 4 1 2 Budgeted unit sales 45,000 65,000 105,000 60,000 90,000 100,000 Selling price per unit $7 8 9 10 11 12 13 14 15 16 17 18 19 Chapter...
Requirement 2: The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget: Year 2 Quarter Year 3 Quarter Data 1 2 3 4 1 2 Budgeted unit sales 50,000 70,000 110,000 60,000 90,000 100,000 Selling price per unit $7 a. What are the total expected cash collections for the year...