The treasurer of Unisyms Company has accumulated the following budget information for the first two months of the coming year: March April Sales. $450,000 $520,000 Manufacturing costs 290,000 350,000 Selling and administrative expenses

TH51
question.xlsx

Sheet1

Unisyms Company Unisyms Company
Schedule of Collections from Sales Cash Budget
For Two Months Ending April 30 For Two Months Ending April 30
March April March April
Cash Sales: $157,500 $182,000 Estimated Cash receipts from:
Cash Sales $157,500 $182,000
Sales on Account: Collections of accounts receivable $285,000 $328,900
Collection from month prior sales $51,000 $58,500 Total cash receipts $442,500 $510,900
Collection from current month's sales $234,000 $270,400 Estimated cash payments for:
Total Sales on Account $285,000 $328,900 Manufacturing costs $174,500 $305,000
Selling and administrative expenses $37,000 $37,500
Capital additions $250,000
Unisyms Company Note Payable
Schedule of Payments for Manufacturing Costs Dividends
For Two Months Ending April 30 Income taxes $40,000
March April Total cash payments $461,500 $382,500
Payments of prior month's manufacturing costs $102,000 $217,500 Cash increase (decrease) ($19,000) $128,400
Payments of current month's manufacturing costs $72,500 $87,500 Cash balance at beginning of month $45,000 $26,000
Total Payments $174,500 $305,000 Cash balance at end of month $26,000 $154,400
Minimum cash balance $20,000 $20,000
Excess (deficiency) $6,000 $134,400
Unisyms Company
Schedule of Payments for Selling & Admin Expenses
For Two Months Ending April 30
March April
Payments of prior month's manufacturing costs $19,500 $17,500
Payments of current month's manufacturing costs $17,500 $20,000
Total Payments $37,000 $37,500
March April
Sales: $450,000 $520,000
Manufacturing Costs: $290,000 $350,000
Selling & Admin Expenses: $41,400 $46,400
Capital Additions: $250,000
Total Sales on Account: $292,500 $338,000
March 1 Current Assets:
Cash: $45,000
Accounts Receivable: $51,000
March 1 Current Liabililities:
Accounts Payable: $121,500
Materials Purchased: $102,000
Operating Expenses: $19,500