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6-33 Cash budgeting, budgeted balance sheet. (LO 5) Refer to the information in Problem 6-32. Budgeted balances at January 31, 2022 are as follows: Selected budget information for December 2021 follows: Customer invoices are payable within 30 days. From past experience, Skulas's accountant projects 40% of invoices will be collected in the month invoiced, and 60% will be collected in the following month. Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with 50% of direct materials purchases paid during the month of the purchase, and 50% paid in the month following purchase. Fixed manufacturing overhead costs include $64,000 of depreciation costs and fixed nonmanufacturing overhead costs include $10,000 of depreciation costs. Direct manufacturing labour and the remaining manufacturing and nonmanufacturing overhead costs are paid monthly. All property, plant, and equipment acquired during January 2022 were purchased on credit and did not entail any outflow of cash. There were no borrowings or repayments with respect to long-term liabilities in January 2022. On December 15, 2021, Skulas's board of directors voted to pay a $160,000 dividend to shareholders on January 31,2022. Required 1. Prepare a cash budget for January 2022. Show supporting schedules for the calculation of collection of receivables and payments of accounts payable, and for disbursements for fixed manufacturing and nonmanufacturing overhesd. 2. Skulas is interested in maintaining a minimum cash balance of $120,000 at the end of each month. Will Skulas be in a position to pay the $160,000 dividend on January 31 ? 3. Why do Skulas's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? 4. Prepare a budgeted balance sheet for January 31,2022 by calculating the January 31, 2022 balances in (a) cash (b) accounts receivable (c) inventory (d) accounts payable and (e) plugging in the balance for shareholders' equity

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