Clipboard Font Alignment ES Vettel Manufacturing Inc. Cash Budget For the Quarte

Question

Clipboard Font Alignment ES Vettel Manufacturing Inc. Cash Budget For the Quarter Ending March 31, 2017 January February March 6 Estimated cash receipts from 7 Cash Sales & Collection of accounts receivable 9 Total cash receipts 10 Estimated cash payment for: 11 Manufacturing Costs 12 Selling and Administrative expenses: 13 Capital expenditures 14 Income tax 15 Dividends 16 Total Cash Payments 17 Cash increase or (decrease) 8 Cash balance of beginning of month 19 0 Minimum cash balance Excess or (deficiency) 24 25 26 27 Schedule of Collections from Sa Payments for Manufacturing CostCash Budget O Type here to search ViewSo

Explanation / Answer

Nov 2016 Dec.2016 Jan.2017 Feb2017 March2017 April 2017 May 2017 A Sales in unit 7835 7970 7450 7090 8320 9070 10120 B=A*68.99 Sales in dollars $        540,537 $        549,850 $        513,976 $        489,139 $           573,997 $        625,739 $        698,179 C=B*0.95 Credit sales $        513,510 $        522,358 $        488,277 $        464,682 $           545,297 $        594,452 $        663,270 D=B*0.05 Cash sales (5%) $          27,027 $          27,493 $          25,699 $          24,457 $             28,700 $          31,287 $          34,909 E Collection from Nov. credit sales $        128,377 F Collection from Dec. credit sales $        391,768 $        130,589 G Collection from Jan. credit sales $        366,208 $           122,069 H Collection from Feb. credit sales $           348,512 $        116,171 I=E+F+G+H Total cas receipt from account receivable $        520,146 $        496,797 $           470,581 Nov 2016 Dec.2016 Jan.2017 Feb2017 March2017 April 2017 May 2017 A Sales in unit 7835 7970 7450 7090 8320 9070 10120 B Endingfinished goods inventory 1714 1631 1914 2086 2328 C Beginning finished goods inventory 1714 1631 1914 2086 2328 D=A+B-C Total production during the month 7367 7373 8493 9312 E=C*2.83 Amount of direct materials required (Pounds) 20848 20865 24034 26352 F Ending direct material inventory 5213 5216 6008 6588 0 G Beginning direct material inventory 5213 5216 6008 H=E+F-G Direct material purchase quantity (Pounds) 20851 21658 24614 I=H*$1.38 Direct material purchase in dollars $          28,775 $          29,888 $             33,967 J Payment for December purchase $5,755.15 K Payment for January purchase $    23,019.60 $      5,754.90 L Payment for February purchase $    23,910.16 $         5,977.54 M Payment for March purchase $       27,173.48 $       6,793.37 N=J+K+L+M Total payment for purchase during the month $28,775 $29,665 $33,151 P=C*1.75*$12.25 Direct labor cost $        157,924 $        158,057 $           182,058 Q=P*1.2 Variable overhead expense $        189,508 $        189,668 $           218,470 R Fixed overhead cash payment (54000+6000+6500) $66,500 $66,500 $66,500 S=N+P+Q+R Total payment for manufacturing cost $442,707 $443,889 $500,179 Selling & administrative expenses T=0.8*A Freight out $            5,960 $            5,672 $               6,656 U=0.01*B Sales Commission $            5,140 $            4,891 $               5,740 V Fixed sales and admin(8700+1800+150+250) $          10,900 $          10,900 $             10,900 W=T+U+V Total payment for sales and admin. Expenses $          22,000 $          21,463 $             23,296 Vettel Manufacturing Inc Cash Budget For the quarter ending March 31, 2017 January February March Estimated cash receipt from: Cash sales $    25,698.78 $    24,456.96 $       28,699.84 Collection of accounts receivable $ 520,145.79 $ 496,796.99 $     470,580.79 Total cash receipts $ 545,844.57 $ 521,253.95 $ 499,280.63 Estimated cash payment for: Manufacturing cost $ 442,706.74 $ 443,889.45 $     500,178.55 Selling & administration expenses $    21,999.76 $    21,463.39 $       23,295.97 Capital expenditure $ 180,000.00 $                   -   $                      -   Income tax $                   -   $                   -   $                      -   Dividends $                   -   $                   -   $                      -   Total cash payments $ 644,706.49 $ 465,352.84 $ 523,474.52 Cash increase/(decrease) $ (98,861.93) $    55,901.10 $ (24,193.89) Cash balance of beginning month $25,711.00 $25,000 $25,000 Cash balance end of month $ (73,150.93) $    80,901.10 $          806.11 Minimum cash balance $25,000 $25,000 $25,000 Excess/(defficiency) $ (98,150.93) $    55,901.10 $ (24,193.89) Borrowing $98,150.93 $24,193.89 Payment of loan $    54,919.59 $0 Payment of interest $981.51 $432 Balance loan $43,231.34 $67,857.54

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