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Skors ?Inc., manufactures and sells snowboards. Skors manufactures a single?model, the Pipex. In late 2021?, Skors?'s management accountant gathered the following data to prepare budgets for January 2022?:

CoursHeroTranscribedText: Budget Balances and Information on Cash Budget Budgeted balances at January 31, 2022 are as follows: Cash Accounts receivable Inventory Property, plant, and equipment (net) $ 851,000 Accounts payable Long-term liabilities 179,000 Shareholders' equity ? Selected budgeted information for December 2021 follows: Cash balance, December 31, 2021 $ 11,000 Budgeted sales 1,700,000 Budgeted materials purchases 660,000Customer invoices are payable within 30 days. From past experience, Skors's accountant projects 30% of invoices will be collected in the month invoiced, and 70% will be collected in the following month. Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with 35% of direct materials purchases paid during the month of the purchase and 65% paid in the month following purchase. Fixed manufacturing overhead costs include $13,000 of depreciation costs and fixed nonmanufacturing overhead costs include $11,000 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, Skors's board of directors voted to pay a $190,000 dividend to shareholders on January 31, 2022.Variable and Fixed Manufacturing Cost Information Variable manufacturing overhead is $10 per direct manufacturing labour-hour. There are also $24,000 in fixed manufacturing overhead costs budgeted for January 2022. Skors combines both variable and fixed manufacturing overhead into a single rate based on direct manufacturing labour-hours. Variable marketing costs are allocated at the rate of $260 per sales visit. The marketing plan calls for 35 sales visits during January 2022. Finally, there are $32,000 in fixed nonmanufacturing costs budgeted for January 2022.X Materials and Labour Requirements, Direct Materials Inventories, and Additional Inventory Information Materials and Labour Requirements Direct materials Wood 8 board feet (b.f.) per snowboard Fibreglass 6 yards per snowboard Direct manufacturing labour 6 hours per snowboard Skors' CEO expects to sell 1,800 snowboards during January 2022 at an estimated retail price of $550 per board. Further, the CEO expects 2022 beginning inventory of 500 snowboards and would like to end January 2022 with 700 snowboards in stock. Direct Materials Inventories Beginning Inventory 1/1/2022 Ending Inventory 1/31/2022 Wood 2,010 b.f. 1,510 b.f. Fibreglass 1,010 yards 2,500 yards Other data include: 2021 Unit Price 2022 Unit Price Wood 29.00 per b.f. $ 31.00 per b.f. Fibreglass 5.00 per yard $ 10.00 per yard Direct manufacturing labour $ 25.00 per hour $ 26.00 per hour The inventoriable unit cost for ending finished-goods inventory on December 31, 2021, is $240.00. Assume Skors uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations. Print DoneRevenue Budget For January 2022 Units Selling price Total revenues Snowboards 1,800 $ 550 $ 990,000 Direct Materials Purchases Budget For January 2022 Materials Wood Fibreglass Total Physical Units Budget To be used in production 16,000 b.f. 12,000 yards Add target ending inventory 1,510 b.f. 2,500 yards Total requirement 17,510 b.f. 14,500 yards Deduct beginning inventory 2,010 b.f. 1,010 _ yards Purchases to be made 15,500 13,490 b.f. - yards Cost Budget $ 480,500 615,400 Purchases $ 134,900 $ Direct Manufacturing Labour Costs Budget For January 2022 Output Units DMLH Hourly Wage Produced per Unit Total Hours Rate Total Snowboards 2,000 6 12,000 $ 26 $ 312,000 Variable manufacturing overhead Total labour hours x Variable manufacturing overhead rate = costs 12,000 X 10 $ 120,000Ending Inventories Budget For January 2022 Quantity Cost per unit Total Direct materials Wood 1,510 $ 31 46,810 Fibreglass 2,500 10 25,000 Finished goods Snowboard 700 536 375,200 447,010 Total ending inventoryRequired 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 overhead. 2. Skors is interested in maintaining a minimum cash balance of $150,000 at the end of each month. Will Skors be in a position to pay the $190,000 dividend on January 31? 3. Why do Skors'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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