Starfish Industries’ sales budget for the first quarter of the upcoming year shows budgeted sales of $325,000, $350,000, and $310,000 in January, February, and March, respectively. All sales are made on credit. The cash receipts budget for March shows total cash receipts equal to $306,840. Starfish grants a discount to customers who pay within 10 days of the invoice. Starfish collects 60% of sales within the discount period, 20% in the month of sale but outside the discount period, 20% in the month following sale. What is the discount offered by Starfish, and what is the Accounts Receivable balance that will be reported in the March 31 pro-forma balance sheet?

Green Landscaping Inc. is preparing its budget for the first quarter of 2020. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end the following information has been collected. Prepare schedules for cash receipts and cash payments, and determine ending balances for balance sheet. Clients usually pay 60% of their fee in the month that service is performed, 30% the month after, and 10% the second month after receiving service. Actual service revenue for 2019 and expected service revenues for 2020 are November 2019, $80,000; December 2019, $90,000; January 2020, $100,000; February 2020, $120,000; and March 2020, $140,000. Purchases of landscaping supplies (direct materials) are paid 60% in the month of purchase and 40% the following month. Actual purchases for 2019 and expected purchases for 2020 are December 2019, $14,000; January 2020, $12,000; February 2020, $15,000; and March 2020, $18,000.

Instructions a. Prepare the following schedules for each month in the first quarter of 2020 and for the quarter in total:

1. Expected collections from clients.

2. Expected payments for landscaping supplies.

b. Determine the following balances at March 31, 2020:

1. Accounts receivable.

2. Accounts payable.

General Lighting During the first quarter of the current year, the company sold 4,000 batteries on credit for $150 each plus state sales tax of 6%. Refer to General Lighting. The price of each battery includes a $1.95 federal excise tax. Any taxes collected must be paid to the appropriate governmental units at the end of the quarter. Which of the following is the proper journal entry to record for the sale of the batteries?

a. Accounts Receivable 636,000, Sales Tax Expense 36,000, Excise Tax Expense 7,800, Sales Revenue 643,800

b. Accounts Receivable 636,000, Sales Revenue 592,200, Sales Tax Payable 36,000, Federal Excise Tax Payable 7,800

c. Accounts Receivable 636,000, Excise Tax Expense 7,800, Sales Revenue 607,800, Sales Tax Payable 36,000

d. Accounts Receivable 643,800, Sales Revenue 600,000, Sales Tax Payable 36,000, Federal Excise Tax Payable 7,800

Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following.

(1) Compute the total variable cost per unit.
(2) Compute the total fixed costs.
(3) Compute the income from operations for sales volume of 14,000 units.

Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals the following.

(1) Compute the total variable cost per unit.
(2) Compute the total fixed costs.
(3) Compute the income from operations for sales volume of 8,000 units.
(4) Compute the income from operations for sales volume of 12,000 units.

Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the following.

(1)Compute the total variable cost per unit.
(2) Compute the total fixed costs.
(3) Compute the income from operations for sales volume of 16,000 units.
(4) Compute the income from operations for sales volume of 20,000 units.

empo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following. Fixed Budget Sales (12,000 units × $219 per unit) $ 2,628,000 Cost of goods sold Direct materials $ 300,000 Direct labor 516,000 Production supplies 312,000 Plant manager salary 100,000 1,228,000 Gross profit 1,400,000 Selling expenses Sales commissions 84,000 Packaging 180,000 Advertising 100,000 364,000 Administrative expenses Administrative salaries 150,000 Depreciation—office equip. 120,000 Insurance 90,000 Office rent 100,000 460,000 Income from operations $ 576,000 (1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 10,000 units. (4) Compute the income from operations for sales volume of 14,000 units.

Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the following. Fixed Budget Sales (18,000 units × $217 per unit) $ 3,906,000 Cost of goods sold Direct materials $ 414,000 Direct labor 756,000 Production supplies 504,000 Plant manager salary 214,000 1,888,000 Gross profit 2,018,000 Selling expenses Sales commissions 126,000 Packaging 252,000 Advertising 100,000 478,000 Administrative expenses Administrative salaries 264,000 Depreciation—office equip. 234,000 Insurance 204,000 Office rent 214,000 916,000 Income from operations $ 624,000 (1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 16,000 units. (4) Compute the income from operations for sales volume of 20,000 units.

During the first calendar quarter of 2016, Clinton Corporation is planning to manufacture a new product and introduce it in two regions. Market research indicates that sales will be 7,000 units in the urban region at a unit price of $53 and 6,000 units in the rural region at $48 each. Because the sales manager expects the product to catch on, he has asked for production sufficient to generate a 5,000-unit ending inventory. The production manager has furnished the following estimates related to manufacturing costs and operating expenses:

*Varies per unit sold, not per unit produced.

a. Assuming that the desired ending inventories of materials A and B are 5,000 and 7,000 pounds, respectively, and that work-in-process inventories are immaterial, prepare budgets for the calendar quarter in which the new product will be introduced for each of the following operating factors:

Do not use negative signs with any of your answers below.

1. Total sales

$Answer

2. Production

Answer

units

3. Material purchase cost

4. Direct labor costs

$Answer

5. Manufacturing overhead costs

6. Selling and administrative expenses

b. Using data generated in requirement (a), prepare a budgeted income statement for the calendar quarter. Assume an overall effective income tax rate of 30%.

Round answers to the nearest whole number.
Do not use negative signs with your answers.

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