Question;The Red Midget;Company processes and distributes beans.;The beans are packed in 1-pound plastic bags and sold to grocery chains;for $0.50 each in boxes of 100 bags.;Sales in February were 14,000 boxes and the firm anticipates selling;16,000 boxes during March. Typically 80%;of the firms customers pay within the month of sale, 18% pay the month after;and 2% are never collected.;The firm buys;beans from local farmers. The farmers;are paid $0.20 per pound, cash. Most of;the processing is done automatically.;Consequently, most ($80,000) of the firms facotry overhead is;depreciation expense.;The firm;advertises heavily and will publish $75,000 worth of advertisements in popular;magazines during March. This is up frm Ferbuary?s;$60,000 for advertisements. The firm;pays for 10% of its advertising in the month the advertisments are run and 90%;the next month. Following are March's;budgeted Income Statement and Statement of Costs of Goods Manufactured and;Sold. All costs and expenses are paid;for an incurred unless specifically indicated otherwise above. The firm will begin March with a cash balance;of $25,000 and pays a monthly dividend of $15,000 to the owners.;Budgeted;Income Statement;Sales $800,000;Cost of Goods Sold $540,000;Gross Margin;$260,000;Administrative Salaries $80,000;Sales Commissions $69,000;Advertising $75,000;Bad debt Expense $16,000;Operating Income;$20,000;Budgeted;Statement of Cost of Goods Manufactured and Sold;Beginning balance direct materials $20,000;Direct materials purchased $330,000;Materials Available for use $350,000;Ending Balance direct Materials $30,000;Direct materials used $320,000;Labor costs incurred $90,000;Overhead costs $115,000;Cost of goods manufactured $525,000;Beginning finished goods balance $45,000;Goods available for sale $570,000;Ending finished goods balance $30,000;Cost of goods sold;$540,000;From;the information provided, prepare a cash receipt and disbursements budget for;March.
Paper#45178 | Written in 18-Jul-2015Price : $22