Question

PLEASE PLEASE I NEED ANSWER FOR BALANCE SHEET AS OF MARCH 31

Cash $4,650.00, Accounts receivable, net $57,600.00, Inventory   $15,600.00; Property, plant, and equipment, net $121,500.00; Accounts payable   $42,800.00;   Capital stock $124,500.00; Retained earnings   $22,800.00

A:            Actual Sales in December were$72,000. Selling price per unit projected to remain stable at $12 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follow: January    $ 104,400    , February $ 108,000 , March $ 112,800 , April $ 109,200, May $ 105,600

B:            Sales are 20% cash and 80% credit. All credit sales are collected in the months following the sale.                                                 

C:            the company has a policy that states that each months ending inventory of finished goods should be 10% of the following month's sales (in units)                             

D:            Of each month's direct material purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. 3kg of direct material is needed at $2.00 per kg. Ending inventory of direct materials should be 30% of next month's production needs

E;             Monthly manufacturing conversion costs Factory rent $ 4,500.00, Other fixed manufacturing expenses $ 2,800.00, Variable manufacturing overhead ($1.10 per unit) $ 1.10, No depreciation is included in these figures. All expenses are paid in the month in which they are incurred

F:    Computer equipment for administrative offices will be purchased in the upcoming quarter incurred, In January, Osborne Manufacturing will purchase January purchase - equipment for $6000 (cash). February cash expenditure will $ 12,800.00, March cash expenditure $15,600.00

g:             Operating expenses are budgeted to be $1.30 per unit sold     $ 1.30 , Plus fixed operating expenses of 1800 per month      $ 1,800.00. All operating expenses are paid in the month in which they are incurred.

H:      Depreciation on the building and equipment for the general administrative offices is budgeted to $4600 for the entire quarter, which includes depreciation on new acquisitions. Depreciation on the building and equipment budget $4,600.00

I:              The Company has a policy that the ending cash balance in each month must be at least $4200, The Company has a line of credit with a local bank. It can borrow increments of $1000 at the beginning of each month up to a total outstanding loan balance of $130,000. The interest rate on these loans is 2% per month simple interest. The company pays down on the line of credit balance if it has excess funds at the end of the quarter. The company also pays the accumulated interest at the end of the quarter on the funds borrowed during the      J:      The company's income tax is projected to be 30% of operating income less interest expense. The company pays $10800 cash at the end of February in estimated taxes

Answer 1

May Particulars Sales Units (Sales/12) Cash sales (20%) Credit sales (80%) Ending inventory (units) Opening inventory (units) Units to be produced December 72,000 6,000 14,400 57,600 TES January February 1,04,400 1,08,000 8,700 9,000 20,880 2 1,600 83,520 86,400 1940 -870 -900 8,730 9,040 March 1,12,800 9,400 22,560 90,240 910 -940 April 1,09,200 9,100 2 1,840 8 7,360 880 -910 9,070 1,05,600 8,800 21,120 84,480 870 900 -880 7,920 9,370 Schedule of expected cash collections April TEST TEREN LESSLER January 20,880 February 21,600 March 22,560 May 1,120 21,840 2 Cash sales Sales on account December January February March 57,600 83,520 86,400 90,240 April 87,360 1,08,480 Total cash collections 1,05,120 1,08,960 1 ,12,080

Cash budget January 4,650 78,480 83,130 February 4,707 1,05,120 1,09,827 March April 5,0744 ,204 1,08,960 1,12,080 1,14,034 1,16,284 May 30,363 1,08,480 1,38,843 53,410 L 4,500 2,800 9,603 6,000 11,310 1,800 Beginning cash balance Add: Collections from customers Total cash available Less: Cash disbursements Purchases for inventory Factory rent Other fixed manufacturing expenses Variable manufacturing overheads Purchase of equipment Variable operating expenses Fixed operating expenses Tax payment Total cash disbursements Excess/(deficiency) of cash available over disbursements Financing Borrowings Repayment - Principal interest Closing cash balance 5 5,014 4,500 2,800 9,977 55,003 4,500 2,800 10,307 15,600 12,220 1,800 48,533 4,500 2,800 8,712 53,408 4,500 2,800 9,944 12,800 11,700 1,800 10,800 1,07,752 11,830 1,800 11,440 1,800 89,423 1,02,230 8 5,921 77,785 -6,293 2,074 11,804 30,363 61,058 11,000 3,000 -7,000 -600 ,204 4,707 5,074 4 30,363 61,058

Balance Sheet as on 31st March Equity and liabilities Accounts payable Equity 44,544 Assets Cash Accounts receivable 4,204 90,240 Inventory - Finished goods (910*12) Direct materials (8163*2) 10,920 16,326 27,246 Property, plant & equipment Less : Depreciation 1,21,500 -4,600 1,16,900