Copy of Ch16 P18 Build a Model-answer

Copy of Ch16 P18 Build a Model-answer - MARINA MORGAN...

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MARINA MORGAN Chapter 16. Ch16 P18 Build a Model Input Data Collections during month of sale 10% Collections during month after sale 75% Collections during second month after sale 15% Lease payments $9,000 Target cash balance $90,000 General and administrative salaries $27,000 Depreciation charges $36,000 $63,000 Miscellaneous expenses $2,700 New design studio payment $180,000 Cash on hand July 1 $132,000 Minimum cash balance $90,000 Sales, labor, and RM adjustment factor 0% a. Prepare a monthly cash budget for the last six months of the year. May June July August September October November December January Original sales estimates $180,000 $180,000 $360,000 $540,000 $720,000 $360,000 $360,000 $90,000 $180,000 Original labor and raw mat. estimates $90,000 $90,000 $126,000 $882,000 $306,000 $234,000 $162,000 $90,000 Collections and purchases worksheet Sales (gross) $180,000 $180,000 $360,000 $540,000 $720,000 $360,000 $360,000 $90,000 $180,000 Collections During month of sale $18,000 $18,000 36000 54000 72000 36000 36000 9000 During 1st month after sale $135,000 135000 270000 405000 540000 270000 270000 During 2nd month after sale 27000 27000 54000 81000 108000 54000 Total collections $198,000 $351,000 $531,000 $657,000 $414,000 $333,000 Purchases Labor and raw materials $90,000 $90,000 $126,000 $882,000 $306,000 $234,000 $162,000 $90,000 Payments for labor and raw materials $90,000 $90,000 $126,000 $882,000 $306,000 $234,000
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