What are the total expected cash collections for the year under this revised bud

Question

What are the total expected cash collections for the year under this revised budget?

      

What is the total required production for the year under this revised budget?

      

What is the total cost of raw materials to be purchased for the year under this revised budget?

      

What are the total expected cash disbursements for raw materials for the year under this revised budget?

      

What are the total expected cash collections for the year under this revised budget?

Excel Projects .> C | ? ezto.mheducation.com/hm.tpx 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 S7. The marketing manager would like to use the following projections in the budget Data Year 2 Quarter Year 3 Quarter 50,000 65,000 120,000 70,000 80,000 90,000 Budgeted unit sales Selling price per unit $7 per unit 1 Chapter 7: Applying Excel 3 Data 5 Budgeted unit sales 7 Seling price per unit Year 2 Quarter Year 3 Quarter 50,000 65,000 120,000 70,000 80,000 90,000 S8 per unit Accounts receivable, beginning balance $65,000 Sales collected in the quarter sales are made 10Sales collected in the quarter after sales are made 11 Desired ending tnished goods inventory i3 2 Finished goods inventory, beginning 3Raw materials required to produce one unit 14 Desired ending inventory of raw materials is 15 Raw materials iventory 75% 25 30% of the budgeted unit sales of the next quarter 12.000units 5 pounds 10% of the next quarters production needs 23.000pounds Raw material costs 7Raw materials purchases are paid 18 and 19 Accounts payabla for raw materials, beginning balance 0.80 per pound 60% in the quarter the purchases are made 40% in the quarter folowing purchase 1.500 a. What are the total expected cash collections for the year under this revised budget? collections for the O Type here to search 3-22 PM 3/27/2018

Explanation / Answer

EXPECTED CASH COLLECTIONS Q1 Q2 Q3 Q4 TOTAL Accounts receivable Beginning 65,000 65000 Quarter-1 sales 262,500 87500 350000 Quartere-2 Sales 341250 113750 455000 Quarter-3 Sales 630,000 210,000 840000 Quarter-4 Sales 367,500 367500 Total Cash Collections 327,500 428,750 743,750 577,500 2077500 PRODUCTION BUDGET Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Budgeted Sales Units 50,000 65,000 120,000 70,000 305,000 80,000 90,000 Add: Desired Ending Finished inventory 19,500 36,000 21,000 24,000 24,000 27,000 Total Needs 69,500 101,000 141,000 94,000 329,000 107,000 Less: Beginning Finished Inventory 12,000 19,500 36,000 21,000 12,000 24,000 Required Production in units 57,500 81,500 105,000 73,000 317,000 83,000 RAW MATERIAL PURCHASE BUDGET Q1 Q2 Q3 Q4 TOTAL Q1 Budgetd production units 57,500 81,500 105,000 73,000 317,000 83,000 Raw material required per unit 5 5 5 5 5 5 Total production needs 287,500 407,500 525,000 365,000 1,585,000 415,000 Add: Desired Ending Inventory 40,750 52,500 36,500 41,500 41,500 Total needs 328,250 460,000 561,500 406,500 1,626,500 Less: Beginning Inventory 23,000 40,750 52,500 36,500 23,000 Purchase Units 305,250 419,250 509,000 370,000 1,603,500 Cost price per unit 0.80 0.80 0.80 0.80 0.80 Budgeted Purchase in $ 244,200 335,400 407,200 296,000 1,282,800 EXPECTED CASH PAYMENTS Q1 Q2 Q3 Q4 TOTAL Beginning Accounts payable 81,500 81500 Quarter -1 Purchases 146,520 97680 244200 Quarter-2 Purchases 201240 134160 335400 Quarter-3 Purchases 244320 162,880 407200 Quarter-4 Purchases 177,600 177600 Total Cash disbursement 228,020 298,920 378,480 340,480 1245900

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