6. Calculate the number of units of finished goods to be manufactured in January 20x1. 7. Calculate the financing required in January, if any, to maintain the firm's minimum cash balance.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Please help
Only looking for help in part 6 and 7
![Problem 9-34 Relationships of the Master-Budget Components (LO 9-3, 9-5, 9-6)
Badlands Inc. manufactures a household fan that sells for $25 per unit. All sales are on account, with 40 percent of sales collected in
the month of sale and 60 percent collected in the following month. The data that follow were extracted from the company's accounting
records.
• Badlands maintains a minimum cash balance of $18,000. Total payments in January 20x1 are budgeted at $320,000.
• A schedule of cash collections for January and February of 20x1 revealed the following receipts for the period:
From December 31 accounts receivable
From January sales.
From February sales.
Cash Receipts
January February
$111,000
196,000 $294,000
74,400
• March 20x1 sales are expected to total 8,500 units.
• Finished-goods inventories are maintained at 20 percent of the following month's sales.
• The December 31, 20x0, balance sheet revealed the following selected figures: cash, $24,200; accounts receivable, $111,000; and
finished goods, $24,900.
Required:
1. Determine the number of units that Badlands sold in December 20x0.
2. Compute the sales revenue for March 20x1.
3. Compute the total sales revenue to be reported on Badlands' budgeted income statement for the first quarter of 20x1.
4. Determine the accounts receivable balance to be reported on the March 31, 20x1, budgeted balance sheet.
5. Calculate the number of units in the December 31, 20x0, finished-goods inventory.
6. Calculate the number of units of finished goods to be manufactured in January 20x1.
7. Calculate the financing required in January, if any, to maintain the firm's minimum cash balance.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F024f156e-a3bf-4cff-b6b1-7bce99b7b856%2F6969a9f2-f56b-4972-a32a-26bfeabc4d9a%2Fcw4uonu_processed.png&w=3840&q=75)
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