Question

in units	april	may	june
sales	70000	60000	80000
production	80000	70000	70000

Cash-related production costs are budgeted at 8$ per unit produced. Of these production costs, 40% are paid in month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to 150000$ per month. The accounts payable balance on March 31 totals 190000$ which will be paid in April.

All units are sold on account for 24$ each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $500000 ($90000 from February's sales and $410000 from March's sales).

A)Prepare a schedule for each month showing budgeted cash disbursements for Hut Corp.

B) Prepare a schedule for each month showing budgeted cash receipts for Hut Corp.

Answer 1