Requirement 1. Prepare a cash budget for January 2021. Show supporting schedules for the calculation of collection of receivables and payments of accounts payable, and for disbursements for fixed manufacturing and operating (nonmanufacturing) overhead.
Begin by preparing the supporting schedule for the calculation of collection of receivables.
Schedule of Cash Collections
From December 2020 sales
From January 2021 sales
Total collections
Next prepare the supporting schedule for the payments of accounts payable.
Schedule of Cash Payments for Accounts Payable
From December 2020 purchases
From January 2021 purchases
Total cash payments for accounts payable
Prepare the supporting schedule for disbursements for fixed manufacturing and operating (nonmanufacturing) overhead.
Schedule of Cash Payments for Fixed Overhead
Fixed manufacturing overhead
Fixed operating (nonmanufacturing) overhead
Total cash payments for fixed overhead
Prepare a cash budget for January 2021. (If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.)
Slides, Inc.
Cash Budget
For Month Ending January 31, 2021 Prepare a cash budget for January 2021. (If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.)
Slides, Inc.
Cash Budget
For Month Ending January 31, 2021
Cash balance, beginning
Add receipts
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Total cash available for needs
Deduct disbursements
Cash balance, ending Data table
Budgeted ballances at January 31, 2021 are as follows:
Cash
Accounts receivable Inventory
Property, plant, and equipment (net)
Accounts payable
Long-term liabilities
Stockholders' equity
Selected budgeted information for December 2020 follows:
Customer invoices are payable within 30 days. From past experience, Slides's accountant projects \( 45 \% \) of invoices will be collected in the month invoiced, and \( 55 \% \) will be collected in the following month. Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with \( 25 \% \) of direct materials purchases paid during the month of the purchase, and \( 75 \% \) paid in the month following purchase.
Fixed manufacturing overhead costs include \( \$ 13,000 \) of depreciation costs and fixed operating (nonmanufacturing) overhead costs include \( \$ 5,000 \) of depreciation costs. Direct manufacturing labor and the remaining manufacturing and operating (nonmanufacturing) overhead costs are paid monthly.
All property, plant, and equipment acquired during January 2021 were purchased on credit and did not entail any outflow of cash. There were no borrowings or repayments with respect to long-term liabilities in January 2021. On December 15, 2020, Slides's board of directors voted to pay a \( \$ 195,000 \) dividend to stockholders on January 31, 2021.
Materials and Labor Requirements
Direct materials
Wood
8 board feet (b.f.) per snowboard
Fiberglass
6 yards per snowboard
Direct manufacturing labor
6 hours per snowboard
Slides' CEO expects to sell 1,800 snowboards during January 2021 at an estimated retail price of \( \$ 550 \) per board. Further, the CEO expects 2021 beginning inventory of 500 snowboards and would like to end January 2021 with 700 snowboards in stock.
Other data include:
The inventoriable unit cost for ending finished-goods inventory on December 31, 2020, is \( \$ 240.00 \). Assume Slides uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations.
Revenue Budget
For January 2021
Units Selling price All property, plant, and equipment acquired during January 2021 were purchased on credit and did not entail any outflow of cash. There were no borrowings or repayments with respect to long-term liabilities in January 2021. On December 15, 2020, Slides's board of directors voted to pay a \$195,000 dividend to stockholders on January 31, 2021.
More info
Variable manufacturing overhead is \( \$ 10 \) per direct manufacturing labor-hour. There are also \( \$ 24,000 \) in fixed manufacturing overhead costs budgeted for January 2021. Slides combines both variable and fixed manufacturing overhead into a single rate based on direct manufacturing labor-hours. Variable marketing costs are allocated at the rate of \( \$ 260 \) per sales visit. The marketing plan calls for 35 sales visits during January 2021. Finally, there are \( \$ 32,000 \) in fixed operating (nonmanufacturing) costs budgeted for January 2021.
