Can you check in the selling and admin budget should I add the 3000 into the dep

Question

Can you check in the selling and admin budget should I add the 3000 into the depreciation ? Please help me to prepare the budget income statement, schedule of collection from sales and scheldule of payment for manufacturing costs and cash budget Cenga | Secure l https://docs.google.com/spreadsheets/d/1-BOfBgyUZGMV3QBOV.MsGp67kv6de www.google.com manocccd .edu/rend Cengage n 100%. S % .0.00 123. Arial. Search the menus (Alte/) VETTEL MANUFACTURING, INC ETTEL MANUFACTURING, INC BALANCE SHEET December 31, 2016 ASSETS 25,711.00 20,000.00 650,735.24 Cash Marketable Securities Accounts Receivable Interest Receivable Inventories Direct Materials Work in Process Finished Goods $7,193.94 86385 60 93,579.54 Total Current Assets 790,025.78 Property. Plant and Equipment 844,200.00 Less: Accumulated Depreciation -318,600.00 Total Property, Plant and Equipment 525,600.00 Total Assets 1.315,625.78 LIABILITIES AND STOCKHOLDERS EQUITY +Requirements Balance Sheet Fact Sheet Sales Budget Production Budget Direct Mai Type here to search

Explanation / Answer

Answer: 1.

As per given question we will have to prepare cash budget as deprecation is non cash expenditure which comany calculate to consolidate the fund so the at the end of the life of the existing machine comapany can easily replace the machine with new machine thats why we will consider the depraction in profit and loss account to consolidate the fund.

as per above discussion we will not consider the depreciation while calulating the cash budget but when you will prepare the Budgeted income statemnet you will have to consider the depreciation.

Answer: 2. Collection From Sales:

Answer: 3. Production Budget

Answer 4. Income Statement:

Particular Nov Dec Jan Feb Mar April May Jun July Aug Sales Unit       7,835          7,970          7,450          7,090          8,320          9,070        10,120               -                 -                 -   Unit Price           69               69               69               69               69               69               69               -                 -                 -   Salesh Value 540,537       549,850       513,976       489,139       573,997       625,739       698,179               -                 -                 -   Cash Sales 5% (A)     27,027        27,493        25,699        24,457        28,700        31,287        34,909               -                 -                 -   Credi Sales 95% 513,510       522,358       488,277       464,682       545,297       594,452       663,270               -                 -                 -   Collection 75% Next Month of Credit Sales (B)            -         385,132       391,768       366,208       348,512       408,973       445,839       497,452               -                 -   Collection 25% following the next month Month of Credit Sales ( c )               -         128,377       130,589        97,942        91,552        87,128       102,243       111,460       124,363 Total Collection A+B+C     27,027       412,625       545,845       521,254       475,154       531,812       567,876       599,696       111,460       124,363

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