I.

Requirement 1.

Prepare Sosa Company's schedule of cash receipts from customers and schedule of cash payments for the first quarter of 2016.

Begin by preparing the schedule of cash receipts from customers for the first quarter of 2016.

Prepare the schedule of cash payments for the first quarter of 2016.

Requirement 2.

Prepare Sosa Company's cash budget for the first quarter of 2016.

Review the schedule of cash receipts from customers you prepared in Requirement 1.

Review the schedule of cash payments you prepared in Requirement 1.

a. Capital expenditures include $36,000 for new manufacturing equipment to be purchased and paid in the first quarter.

b. Cash receipts are 60% of sales in the quarter of the sale and 40% in the quarter following the sale.

c. Direct materials purchases are paid 70% in the quarter purchased and 30% in the next quarter.

d. Directlabor, manufacturingoverhead, and selling and administrative costs are paid in the quarter incurred.

e. Income tax expense for the first quarter is projected at $42,000 and is paid in the quarter incurred.

f. SosaCompany expects to have adequate cash funds and does not anticipate borrowing in the first quarter.

g. The December 31,2015, balance in Cash is $14,000, in Accounts Receivable is $23,200, and in Accounts Payable is $10,500

II.

Requirement 1.

Prepare Grayson's operating budget and cash budget for 2017 by quarter. Required schedules and budgets include: sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budget. Manufacturing overhead costs are allocated based on direct labor hours.

Round all calculations to the nearest dollar.
Begin by preparing the sales budget.

Prepare the production budget.
Review the sales budget you prepared above.

Prepare the direct materials budget.
Review the production budget you prepared above.

Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, X.XX, and round all other amounts to the nearest whole number.)
Review the production budget you prepared above.

Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing overhead.)

Review the production budget you prepared above.
Review the direct labor budget you prepared above.

Before preparing the cost of goods soldbudget, calculate the projected manufacturing cost per tire for 2017.
(Round all amounts to the nearest cent.)

Total projected manufacturing cost per tire for 2017
Now prepare the cost of goods sold budget.
Review the sales budget you prepared above.
Review the production budget you prepared above.

Prepare the selling and administrative expense budget.
Review the sales budget you prepared above.

Prepare the cash receipts budget. (If a box is not used in the table leave the box empty; do not enter a zero.)
Review the sales budget you prepared above.

Prepare the cash payments budget. (Round all amounts you entered into the budget to the nearest whole dollar. If a box is not used in the table leave the box empty; do not enter a zero.)

Review the direct materials budget you prepared above.
Review the direct labor budget you prepared above.
Review the manufacturing overhead budget you prepared above.
Review the selling and administrative expense budget you prepared above.

Prepare the cash budget. (Complete all input boxes. Enter a "0" for any zero balances. Round all amounts entered into the cash budget to the nearest whole dollar. Enter a cash deficiency, principal repayments, and/or a net repayment on financing with a minus sign or parentheses.)

Review the cash receipts budget you prepared above.
Review the cash payments budget you prepared above.

Requirement 2.

Prepare Grayson's annual financial budget for 2017, including budgeted income statement, budgeted balance sheet, and budgeted statement of cash flows.

Begin with the budgeted income statement. (Complete all input boxes. Enter a "0" for any zero balances.)
Review the sales budget you prepared above.
Review the cost of goods sold budget you prepared above.
Review the selling and administrative expense budget you prepared above.
Review the cash budget you prepared above.

Prepare the budgeted balance sheet. (Round to the nearest wholedollar.)
Review the production budget you prepared above.
Review the direct materials budget you prepared above.
Review the selling and administrative expense budget you prepared above.
Review the cash receipts budget you prepared above.
Review the cash payments budget you prepared above.
Review the cash budget you prepared above.
Review the income statement you prepared above.

Prepare the budgeted statement of cash flows. (Enter a use of cash with a minus sign or parentheses. Complete all input boxes. Enter a "0" for any zero balances.)

Review the cash budget you prepared above.

III. Armand Company projects the following sales for the first three months of theyear: $10,600 in January; $12,300 in February; and $12,900 in March. The company expects 60% of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January 1. Round to the nearest dollar.

Requirement 1.

Prepare a schedule of cash receipts for Armand for January, February, and March.
What is the balance in Accounts Receivable on March 31?
(If a box is not used in the table leave it empty; do not enter a zero.)

Requirement 2.

Prepare a revised schedule of cash receipts if receipts from sales on account are 60% in the month of the sale, 30% in the month following the sale, and 10% in the second month following the sale. What is the balance in Accounts Receivable on March 31?
(If a box is not used in the table leave it empty; do not enter a zero.)

IV. Paperclip Office Supply's March 31, 2016, balance sheet follows:

The budget committee of Paperclip Office Supply has assembled the following data:

Requirement 1.

Prepare Paperclip's sales budget for April and May 2016.
Round all amounts to the nearest dollar.

Requirement 2.

Prepare Paperclip's inventory, purchases, and cost of goods sold budget for April and May.

Requirement 3.

Prepare Paperclip's selling and administrative expense budget for April and May.

V. MistCompany has the following post-closing trial balance on December 31, 2016:

The company's accounting department has gathered the following budgeting information for the first quarter of 2017:

Additional information:Rent and income tax expenses are paid as incurred. Insurance expense is an expiration of the prepaid amount.

Requirement 1.

Prepare a budgeted income statement for the quarter ended March 31, 2017.

Requirement 2.

Prepare a budgeted balance sheet as of March 31, 2017.

Requirement 3.

Prepare a budgeted statement of cash flows for the quarter ended March 31, 2017.

Complete the three sections of the budgeted statement of cash flows, then compute the net increase in cash and the balance at March 31, 2017.

(Enter a use of cash with a minus sign or parentheses. If a box is not used in the statement of cash flows leave the box empty; do not select a label or enter a zero.)

Attachment:- Problems_Set.rar