I\'m going to ask this again because the first person that answered didn\'t prov

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I'm going to ask this again because the first person that answered didn't provide me with the solutions which is what I actually need and requested.

Problem 5-35 Sunland Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. Carol Jones, the firm's marketing director, has completed the following sales forecast Month January February March April Ma June Sales Month Sales $901,000 July $1,503,700 $1,503,700 $901,000 September $1,604,500 $1,604,500 51,257,200 November ,503,700 $1,404,500 December ,700,000 S1,009,000 August S1,158,600 october Phillip Smith, an accountant in the Planning and Budgeting Department, is responsible for preparing the cash flow projection. He has gathered the following information. All sales are made on credit. ·Sunland's excellent record in accounts receivable collection is expected to continue, with 60% of billings collected in the month after sale and the remaining 40% collected two months after the sale cost of goods sold, Sunland's largest expense, is estimated to equal 40% of sales dollars. Seventy percent of Inventory is purchased one month prior to sale and 30% during the month of sale. For example, In April, 30% of April cost of goods sold is purchased and 70% of May cost of goods sold is purchased. All purchases are made on account. Historically, 75% of accounts payable have been paid during the month of purchase, and the remaining 25% in the month following purchase. * Hourly wages and fringe benefits, estimated at 30% of the current month's sales, are paid in the month incurred. General and administrative expenses are projected to be $1,572,800 for the year. A breakdown of the expenses follows. All expenditures are paid monthly throughout the year, with the exception of property taxes, which are paid in four equal installments at the end of each quarter. $ 329,900 374,100 140,000 194,600 183,500 350,700 1,572,800 Salaries and fringe benerits Property taxes Insurance Utilities Total ·Operating income for the first quarter of the coming year is projected to be $322.400. Sunland is subject to a 40% tax rate. The company pays 100% of its estimated taxes in the month following the end of each quarter.

Explanation / Answer

Cash Receipts Budget April May June Total cash receipts February Sales 403600 403600 March Sales 540600 360400 901000 April Sales 695160 463440 1158600 May Sales 754320 754320 Total 944200 1055560 1217760 3217520 Accounts Receivable at the end of second quarter of 2016 1907380 Purchase Budget April May June Total Purchases April COGS 139032 139032 May COGS 352016 150864 502880 June COGS 393260 168540 561800 July COGS 421036 421036 Total Purchases 491048 544124 589576 1624748 Cash Payment Budget April May June Total April purchases 368286 122762 491048 May purchases 408093 136031 544124 June purchases 442182 442182 Total 368286 530855 578213 1477354 Accounts Receivable at the of second quarter of 2016 147394 Cash Budget April May June Total Beginning Cash Balance 59400 68599 125969 59400 Add: Cash receipts fom sales 944200 1055560 1217760 3217520 Cash available for disbusrements 1003600 1124159 1343729 3276920 Cash disbursements:     Cost of goods sold 368286 530855 578213 1477354     Wages and fringe benefits 347580 377160 421350 1146090     Salaies and fringe benefits 27492 27492 27492 82475     Advertising 31175 31175 31175 93525    Property taxes 35000 35000    Insurance 16217 16217 16217 48650    Utilities 15292 15292 15292 45875    Income tax 128960 128960 Total disbursements 935001 998190 1124738 3057929 Cash Surplus / (Deficit) 68599 125969 218991 218991 Minimum cash balance 50000 50000 50000 50000 Cash Excess / (Deficit) 18599 75969 168991 168991 Financing:    Borrowing 0 0 0 0    Repayment 0 0 0 0    Interest 0 0 0 0 0 0 0 0 Ending Cash Balance 68599 125969 218991 218991

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