This paper circulates around the core theme of ACCOUNTING 221-Below is summary monthly income statement data together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
This is a comprehensive problem all contained on this spreadsheet tab.Cash BudgetBelow is summary monthly income statement data for Ace Manufacturing Company.Sales revenueDirect materials purchasesDirect laborManufacturing overheadSelling and administrative expensesJanuary250,00060,00088,00050,00045,000February275,00070,00095,00052,00046,000All sales are on account, and history has shown that 40% of sales is expected to be collected in the month of the sale, with 60%Direct materials are paid 50% in the month of purchase and 50% the following month. All other expenses are paid as incurred.costs (depreciation has already been eliminated).Other data:1. December sales were $230,000.2. Purchases of direct materials purchased in December were $50,000.3. The company has interest payments due of $5,000 per month.4. The cash balance on January 1 was $15,000.InstructionsA. Prepare schedules for expected collections from customers and expected payments for direct materials purchases.B. Prepare a cash budget for January and February.n the month of the sale, with 60% collected the following month.er expenses are paid as incurred. All costs shown are cash-basedect materials purchases.
