Cloie Boel, financial manager of Swimwear, Inc. is currently forecasting the company's cash needs for the first half of next year. Swimwear's sales are highly seasonal, with most of its sales occurring in the spring, just prior to the summer swimming season. The firm's marketing department forecasts sales as follows: NovemberP 50,000DecemberlJanuaryFebruary75,000300,000400,000550,000AprilMayJuneJulyP925,000725,000475,000300,000MarchCollection estimates obtained from the credit and collection departments aré as follows20% of peso sales will be collected in the month of sale; 60% will be collected the monthfollowing the sale; and 20% will be collected two months following the sale.Wages and materials costs related to production, and hence to sales. The productiondepartment has estimated theses costs as follows: ni stP175,000DecemberAprilP425,000175,00075,000January175,000le May250,000FebruaryMarch275,000niwoliol ordi niJuneNote, however, that payments for wages and materials are typically paid during themonth following the one in which the costs are incurred.Administrative salaries are projected at P25,000 a month; lease payments amouP20,000 a month; depreciation expenses are P30,000 per month; and miscellaneous overheadexpenses total P10,000 a month. Quarterly tax payments of P125,000 must be made in Marand June; and P250,000 will be needed in April to purchase a new fabric cutting machine.The company expects the firm to have P50,000 on hand at the beginning of January, andshe wants to start each month with that amount on hand. As Jill's assistant, you have beenasked to assist her by completing the following tasks.Instructions:1. Construct the collections worksheet for the months of January through June.2. Construct the remainder of the cash budget for the months of January through June.3. What is Swimwear's maximum loan requirement?4. What is the firm's maximum surplus balance?

Hi student Since there are multiple subparts, we will answer only first three subparts.

P 50,000 75,000 300,000 400,000 550,000 November April Мay June July P925,000 725,000 475,000 300,000 December January February March Collection estimates obtained from the credit and collection departments aré as follows 20% of peso sales will be collected in the month of sale; 60% will be collected the mont following the sale; and 20% will be collected two months following the sale. Wages and materials costs related to production, and hence to sales. The productiom department has estimated theses costs as follows: December P175,000 April May June 275,000 iwoliosd P425,000 January February March 175,000 175,000 250,000 75,000 sris ni l Note, however, that payments for wages and materials are typically paid during the month following the one in which the costs are incurred. Administrative salaries are projected at P25,000 a month; lease payments amou P20,000 a month; depreciation expenses are P30,000 per month; and miscellaneous overhead expenses total P10,000 a month. Quarterly tax payments of P125,000 must be made in Mardh and June; and P250,000 will be needed in April to purchase a new fabric cutting machine. The company expects the firm to have P50,000 on hand at the beginning of January, she wants to start each month with that amount on hand. As Jill's assistant, you have beem asked to assist her by completing the following tasks. Instructions: 1. Construct the collections worksheet for the months of January through June. 2. Construct the remainder of the cash budget for the months of January through June. 3. What is Swimwear's maximum loan requirement?

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 1R: Ranger Industries has provided the following information at June 30: Other information: Average...