Tilson Company Has Projected Sales and Production in Units for the Second

question 114

Essay

Tilson Company has projected sales and production in units for the second quarter of the coming year as follows:

Cash-related production costs are budgeted at $7 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $110,000 per month. The accounts payable balance on March 31 totals $193,000, which will be paid in April.

All units are sold on account for $16 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totalled $520,000 ($100,000 from February's sales and the remainder from March).

Required:

a) Prepare a schedule for each month showing budgeted cash disbursements for Tilson Company.
b) Prepare a schedule for each month showing budgeted cash receipts for Tilson Company.

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Definitions:

Parallel Processing

A computational method where multiple processors execute or process instructions simultaneously to increase computing speed and efficiency.

Pipelining

A technique in computer architecture where multiple instructions are overlapped in execution to improve the performance of the execution of sequences of instructions.

Multiple Monitors

The use of more than one display screen at a time to expand visual workspace, often used to improve multitasking or enhance gaming and multimedia experiences.