A Manufacturer made one product Tiles. Sales for the period consists of the following information: Month $ November 100,000 December 350,000 January 300,000 February 250,000 March 300,000 Balance brought down was $40,000 Purchases of Raw Material: January $ 60,000; February 55,000; and March 60,000. Purchase equipment $10,000 to be paid for in February; Salary for each month $10,000; Electricity $4000 per month; Rent $12,000 each, Depreciation $5000. Income tax for the year paid in March $3000. All Sales are done on credit and collection are collected every quarter. Collection schedule as follows; 60 percent in the month of sale 30 percent in the month following sale and 20 percent two months following sale. You are required to prepare B. the Cash Budget for the first Quarter 2021

A Manufacturer made one product Tiles. Sales for the period consists of the following information: Month $ November 100,000 December 350,000 January 300,000 February 250,000 March 300,000 Balance brought down was $40,000 Purchases of Raw Material: January $ 60,000; February 55,000; and March 60,000. Purchase equipment $10,000 to be paid for in February; Salary for each month $10,000; Electricity $4000 per month; Rent $12,000 each, Depreciation $5000. Income tax for the year paid in March $3000. All Sales are done on credit and collection are collected every quarter. Collection schedule as follows; 60 percent in the month of sale 30 percent in the month following sale and 20 percent two months following sale. You are required to prepare B. the Cash Budget for the first Quarter 2021

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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