cash costs $7 per unit
production costs paid 40% in the month of sale and balance in the following month
Selling and admin expense $110,000 per month
March 31 balance $193,000 paid in April
units sold for $16
cash collections 60% in the month of 30% in the following monthe and 10% in the second month following the month of sale.
A/R on April 1 $520,000 = 100,000 for Feb and the remaining for March
Sales... Apr. 55,000 May. 45,000 & Jun. 65,000
Purchases... Apr-65,000 May-55,000 Jun-55,000
Budgeted Cash disbursements:
April May June
A/R 193,000
April purchases (=65,000*7*.4*.6) 182,000 273,000
May purchases (=55,000*7*.4*.6) 154,000 231,000
June (=55,000*7*.4*.6) 154,000
Total 375,000 427,000 385,000

Am I on the right track?

I am retyping this question: Cash costs $7 per unit
Production costs paid 40% in the month of sale and balance in the following month
Selling and admin expense $110,000 per month
March 31 balance $193,000 paid in April
Units sold for $16
Cash collections 60% in the month of 30% in the following month and 10% in the second month following the month of sale.
A/R on April 1 $520,000 = 100,000 for Feb and the remaining for March
Sales... Apr. 55,000 May 45,000 & Jun. 65,000
Purchases... Apr-65,000 May-55,000 Jun-55,000


Budgeted Cash disbursements:
April May June
A/R 193,000
April purchases (=65,000*7*.4*.6) 182,000 273,000
May purchases (=55,000*7*.4*.6) 154,000 231,000
June (=55,000*7*.4*.6) 154,000
Total $375,000 $427,000 $385,000

7146557324

7146557324
Budgeted Cash receipts:
April May June
Feb sales…. 100,000
Mar sales…. 126,000
April sales (=55,000*$16*.9*.05)…. 792,000 44,000
May sales (=45,000*$16*.9*.05)…. 648,000 231,000
June sales (=65,000*$16*.9*.05)…. 154,000
Total cash collections $1,018,000 $692,000 $972,000

This problem is similar to the one I am having issues with


Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow:
- Sales are budgeted at $330,000 for November, $300,000 for December, and $320,000 for January.
- Collections are expected to be 85% in the month of sale, 14% in the month following the sale, and 1% uncollectible.
- The cost of goods sold is 60% of sales.
- The company purchases 80% of its merchandise in the month prior to the month of sale and 20% in the month of sale. Payment for merchandise is made in the month following the purchase.
- Other monthly expenses to be paid in cash are $21,200.
- Monthly depreciation is $21,000.
- Ignore taxes.

Statement of Financial Position
October 31
Assets:
Cash $ 22,000
Accounts receivable, net of allowance for doubtful accounts 83,000
Inventory 158,400
Property, plant and equipment
Net of $594,000 accumulated depreciation 1,004,000
Total assets $1,267,400


Liabilities and Stockholders’ Equity:
Accounts payable 196,000
Common Stock 620,000
Retained earnings 451,400
Total liabilities and stockholders’ equity $1,267,400




Required:
a. Prepare a Schedule of Expected Cash Collections for November and December.
b. Prepare a Merchandise Purchases Budget for November and December.
c. Prepare Cash Budgets for November and December.
d. Prepare Budgeted Income Statements for November and December.
e. Prepare a Budgeted Balance Sheet for the end of

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Budgeted Cash Disbursements:                                               
                                April        May        June
A/P, beginning balance                                193,000               
April purchases (=65,000*$7*.4*.6)                                182,000        273,000       
May purchases (=55,000*$7*.4*.6)                                        154,000        231,000
June purchases (=55,000*$7*.4*.6)                                                154,000
Selling and Administrative expenses                                100,000        100,000       
Total                                $475,000        $527,000        $385,000

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Budgeted Cash Disbursements:
April May June
A/P, beginning balance 193,000
April purchases (=65,000*$7*.4*.6) 182,000 273,000
May purchases (=55,000*$7*.4*.6) 154,000 231,000
June purchases (=55,000*$7*.4*.6) 154,000
Selling and Administrative expenses 100,000 100,000
Total $475,000 $527,000 $385,000

Please do not EVER post more than one problem in the same thread like that. Right now I'm extremely confused over what problem is what cause you've got like 3-4 problems mixed up in the same thread. And I can already see you've got a post from one problem mixed up in the middle of other problems. How do you expect anyone to follow that?

I've moved out what I know does not belong with the original thread. As soon as I figure out what are individual problems, I'm going to move them as well.

Just to be quite frank, I almost didn't touch this thread AT ALL cause it was so confusing. Especially with the problems being so long to start with.

Not to mention... you've posted the same answer 3 times, making it more stuff to have to go through.

You can use ledger dots to make columns. You can put it in Excel and attach it.

It would help if you'd say what is units. It took me a bit to figure out that two of the lines of figures were actually units (and only because they were so far off the receivables and didn't make sense).

As for the disbursements, you've got the right idea. However, you've changed the S&A from 110,000 to 100,000 for unknown reasons. And it says per month, so what's the reasoning behind leaving it out of June?

I'm not really following your calculations. I can see that the numbers are there, but could not follow your calculations. I'm just going by the totals.

As for the collections, again I'm not really following the work cause of lack of columns. But the totals aren't right. I can also see that the numbers themselves just don't match any of mine. Where is the 90% and 5% coming from?

What you should be doing, instead of posting problem after problem, is posting one problem -- then check and see if you are doing it correctly and get the guidance you need, then take that and try to apply it to another problem FIRST. Then return with another problem, showing what you've attempted and asking what further questions you have.

Take what you learn from the other posts and come back to this one later and try to apply it. Once you've done that, post your attempts on this same thread.

(Keep everything from the same problem in the same thread so it's all together. Put other problems in their own thread so as not to mix them up. The logic behind that is not that difficult.)