| For this assignment please explain the initial problem and the initial assumptions, then provide a complete answer. Explain your work in detail atleast 5 references |
| are required for this assignment. One should be the textbook as the source of data. |
| AI manufacturing is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payment for product cost for the quarter follow: |
| Budgeted sales | $ 63,400 | $ 80,600 | $ 48,600 |
| Budgeted cash payments for |
| Direct materials | $ 12,480 | $ 9,900 | $ 10,140 |
| Direct labor | $ 10,400 | $ 8,250 | $ 8,450 |
| Factory overhead | $ 18,720 | $ 14,850 | $ 15,210 |
| Information: |
| Sales are 20% in cash and .80 credit |
| All credit sales are collected in the month following the sales. |
| The June 30 balance sheet include cash in the amount of $12,900 |
| Accounts receivable is $47,000 |
| Accounts payable is $5,100 |
| Balance in loans payable is $2,600 |
| A minimum cash balance of $12,600 is required Loans are obtained at the end of any month when a cash shortage occurs |
| Interest is 1% per month based on the beginning-of the month loan balance and is paid at each month-end |
| If an excess balance cash exists, loans are repaid at the end of the month |
| Operating expenses are paid in the month incurred |
| Sales commissions is 10% of sales |
| Office salaries is $4,600 per month |
| Rend is $7,100 per mondh |
| Required: |
| 1. Prepare a cash receipts budget for July, August, and September |
| 2. Prepare a cash budget for each of the month of July, August, and September ( Round amounts to the dollar) |
| Cash Receipt Budget & Cash budget from July through September |
| | In table below all given numbers are in black letters, all the found numbers in red |
| | July | August | September |
| Sales |
| Budgeted cash payments |
| Direct Materials |
| Direct Labor |
| Factory Overhead |
| Proforma statement of cash flows |
| Initial Cash |
| Accounts Payable |
| Accounts Recievable |
| Loan Payable |
| The cash flow from operating activities |
| Cash received for previous month sales |
| Cash received for current month sales |
| Sales commission |
| Office salaries |
| Rent |
| Direct Materials |
| Direct Labor |
| Factory Overhead |
| Cash Flow from operating activities |
| Cash flow from financing activities |
| Interest on loan |
| Reduction in accounts payable |
| Cash flow from financing activities |
| Ending cash before loan adjustment |
| Loan adjusment |
| Ending cash |
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ProfesionalassignmentinclassSTUDENTS1.xlsx
