Dear Bartleby, can you please assist with solving the following item enclosed, thank you. Following are the budgeted income statements for the second quarter of 2019 for SeaTech Inc.: April May June Sales $ 112,000 $ 136,000 $ 152,000 Cost of goods sold* 76,800 91,200 100,800 Gross profit $ 35,200 $ 44,800 $ 51,200 Operating expenses† 17,600 20,000 21,600 Operating income $ 17,600 $ 24,800 $ 29,600 *Includes all product costs (i.e., direct materials, direct labor, and manufacturing overhead). †Includes all period costs (i.e., selling, general, and administrative expenses). The company expects about 40% of sales to be cash transactions. Of sales on account, 65% are expected to be collected in the first month after the sale is made, and 35% are expected to be collected in the second month after sale. Depreciation, insurance, and property taxes represent $9,600 of the estimated monthly cost of goods sold and $6,400 of the estimated monthly operating expenses. The annual insurance premium is paid in January, and the annual property taxes are paid in August. Of the remainder of the cost of goods sold and operating expenses, 90% are expected to be paid in the month in which they are incurred, and the balance is expected to be paid in the following month. Current assets as of April 1, 2019, consist of cash of $11,200 and accounts receivable of $119,840 ($84,000 from March credit sales and $35,840 from February credit sales). Current liabilities as of April 1 consist of $14,400 of accounts payable for product costs incurred in March; $3,680 of accrued liabilities for operating expenses incurred in March; and a $38,000, 12%, 120-day note payable that is due on April 17, 2019. An estimated income tax payment of $36,000 will be made in May. The regular quarterly dividend of $12,800 is expected to be declared in May and paid in June. Capital expenditures amounting to $13,760 will be made in April. Required: a. Complete the monthly cash budgets for the second quarter of 2019 using the following format. Note that the ending cash balance for June is provided as a check figure. (Use 360 days year for calculations.)

Dear Bartleby, can you please assist with solving the following item enclosed, thank you. Following are the budgeted income statements for the second quarter of 2019 for SeaTech Inc.: April May June Sales $ 112,000 $ 136,000 $ 152,000 Cost of goods sold* 76,800 91,200 100,800 Gross profit $ 35,200 $ 44,800 $ 51,200 Operating expenses† 17,600 20,000 21,600 Operating income $ 17,600 $ 24,800 $ 29,600 *Includes all product costs (i.e., direct materials, direct labor, and manufacturing overhead). †Includes all period costs (i.e., selling, general, and administrative expenses). The company expects about 40% of sales to be cash transactions. Of sales on account, 65% are expected to be collected in the first month after the sale is made, and 35% are expected to be collected in the second month after sale. Depreciation, insurance, and property taxes represent $9,600 of the estimated monthly cost of goods sold and $6,400 of the estimated monthly operating expenses. The annual insurance premium is paid in January, and the annual property taxes are paid in August. Of the remainder of the cost of goods sold and operating expenses, 90% are expected to be paid in the month in which they are incurred, and the balance is expected to be paid in the following month. Current assets as of April 1, 2019, consist of cash of $11,200 and accounts receivable of $119,840 ($84,000 from March credit sales and $35,840 from February credit sales). Current liabilities as of April 1 consist of $14,400 of accounts payable for product costs incurred in March; $3,680 of accrued liabilities for operating expenses incurred in March; and a $38,000, 12%, 120-day note payable that is due on April 17, 2019. An estimated income tax payment of $36,000 will be made in May. The regular quarterly dividend of $12,800 is expected to be declared in May and paid in June. Capital expenditures amounting to $13,760 will be made in April. Required: a. Complete the monthly cash budgets for the second quarter of 2019 using the following format. Note that the ending cash balance for June is provided as a check figure. (Use 360 days year for calculations.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Dear Bartleby, can you please assist with solving the following item enclosed, thank you. Following are the budgeted income statements for the second quarter of 2019 for SeaTech Inc.:

	April		May	June
Sales	$	112,000		$	136,000	$	152,000
Cost of goods sold^*		76,800			91,200		100,800
Gross profit	$	35,200		$	44,800	$	51,200
Operating expenses^†		17,600			20,000		21,600
Operating income	$	17,600		$	24,800	$	29,600

^*Includes all product costs (i.e., direct materials, direct labor, and manufacturing overhead).
^†Includes all period costs (i.e., selling, general, and administrative expenses).

The company expects about 40% of sales to be cash transactions. Of sales on account, 65% are expected to be collected in the first month after the sale is made, and 35% are expected to be collected in the second month after sale. Depreciation, insurance, and property taxes represent $9,600 of the estimated monthly cost of goods sold and $6,400 of the estimated monthly operating expenses. The annual insurance premium is paid in January, and the annual property taxes are paid in August. Of the remainder of the cost of goods sold and operating expenses, 90% are expected to be paid in the month in which they are incurred, and the balance is expected to be paid in the following month.

Current assets as of April 1, 2019, consist of cash of $11,200 and accounts receivable of $119,840 ($84,000 from March credit sales and $35,840 from February credit sales). Current liabilities as of April 1 consist of $14,400 of accounts payable for product costs incurred in March; $3,680 of accrued liabilities for operating expenses incurred in March; and a $38,000, 12%, 120-day note payable that is due on April 17, 2019.

An estimated income tax payment of $36,000 will be made in May. The regular quarterly dividend of $12,800 is expected to be declared in May and paid in June. Capital expenditures amounting to $13,760 will be made in April.

Required:
a. Complete the monthly cash budgets for the second quarter of 2019 using the following format. Note that the ending cash balance for June is provided as a check figure. (Use 360 days year for calculations.)

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