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1. The Skulas Company's January 2018 Cash Budget for the Month Ended January 31, 2018

Initial cash position as of December 31, 2017 $124,000

Collections from December sales totaled $990,000 [(1)].

Sales in January brought in 660,000 [(2)] in revenue.
Revenues totaled $1,650,000.

Direct material purchases were $820,000 in expenses [(3)].

140,000 [(4)] in fixed manufacturing overhead
35,000 [(5)] in fixed non-manufacturing overhead
Payout of dividends of 160 000 [(6)]
total expenditures $1,155,000

surplus or deficit in receipts compared to outlays $495,000

Financing: Net financing 0 Borrowings 0 Repayments 0

$619,000 was the final cash balance [(7)].

scheduling materials

(1) Sales proceeds from December:

Budgeted sales of $1,650,000 for December 2017
Less: 60% (990,000) was gathered in December.
40% of the $660,000 in January's revenue

(2) Sales proceeds from January:

January 2018 sales projections are $1,650,000
Less: 60% was received in January (660,000)
60% of the 990,000 gathered in February

(3) Direct material purchase payments: $820,000 in material budgeted purchases

50% of 410,000 were paid in December, and 50% in January.

(4) Payments made for ongoing production overhead:

Depreciation is 64,000 Cheaper: 0 in non-cash costs 64,000 in cash outlays

(5) Costs for recurring non-manufacturing overhead:

Cost of depreciation is 10,000.
Less: Cash disbursements 10,000 Cash costs 0

(6) Payment of dividends:

15 December 2017: declared 160,000
paid $160,000 on January 31, 2018

(7) The excess (deficit) of receipts over disbursements is the ending cash balance. $495,000
Add: Beginning cash balance 124,000
Ending cash balance $619,000

Explanation:
2. Given that the planned ending cash balance on January 31, 2018, is $619,000, exceeding the targeted minimum of $120,000, Skulas will be able to pay the $160,000 dividend.

3. The cash budget is created by Skulas' managers in addition to the revenue, expense, and operating income budgets because it offers details on the timing and magnitude of
anticipated cash inflows and outflows, which are crucial for ensuring that the business has enough cash on hand to pay its obligations as they become due. Making investment and
financing decisions, planning cash resources, and avoiding cash shortages and excesses are all made easier with the use of the cash budget.

4. The budgeted balance as of January 31, 2018 is as follows

Budgeted Balance Sheet as of January 31, 2018 for Skulas Company

Cash $619,000 [(7)] is an asset.

660,000 in accounts receivable [(2)]
820,000 items in stock [(8)]
1,175,600 in net property, plant, and equipment
Assets totaled $3,274,600.

Accounts payable for liabilities and stockholders' equity total 410,000 [(9)]
182,000 in long-term obligations

Final answer

1. The Skulas Company's January 2018 Cash Budget for the Month Ended January 31, 2018

Initial cash position as of December 31, 2017 $124,000

Collections from December sales totaled $990,000 [(1)].

Sales in January brought in 660,000 [(2)] in revenue.
Revenues totaled $1,650,000.

Direct material purchases were $820,000 in expenses [(3)].

140,000 [(4)] in fixed manufacturing overhead
35,000 [(5)] in fixed non-manufacturing overhead
Payout of dividends of 160 000 [(6)]
total expenditures $1,155,000

surplus or deficit in receipts compared to outlays $495,000

Financing: Net financing 0 Borrowings 0 Repayments 0

$619,000 was the final cash balance [(7)].

(1) Sales proceeds from December:
Budgeted sales of $1,650,000 for December 2017
Less: 60% (990,000) was gathered in December.
40% of the $660,000 in January's revenue

(2) Sales proceeds from January:

January 2018 sales projections are $1,650,000
Less: 60% was received in January (660,000)
60% of the 990,000 gathered in February

(3) Direct material purchase payments: $820,000 in material budgeted purchases

50% of 410,000 were paid in December, and 50% in January.

(4) Payments made for ongoing production overhead:

Depreciation is 64,000 Cheaper: 0 in non-cash costs 64,000 in cash outlays

(5) Costs for recurring non-manufacturing overhead:

Cost of depreciation is 10,000.
Less: Cash disbursements 10,000 Cash costs 0

(6) Payment of dividends:

15 December 2017: declared 160,000
paid $160,000 on January 31, 2018

(7) The excess (deficit) of receipts over disbursements is the ending cash balance. $495,000
Add: Beginning cash balance 124,000
Ending cash balance $619,000

2. Given that the planned ending cash balance on January 31, 2018, is $619,000, exceeding the targeted minimum of $120,000, Skulas will be able to pay the $160,000 dividend.

3. The cash budget is created by Skulas' managers in addition to the revenue, expense, and operating income budgets because it offers details on the timing and magnitude of anticipated cash
inflows and outflows, which are crucial for ensuring that the business has enough cash on hand to pay its obligations as they become due. Making investment and financing decisions, planning
cash resources, and avoiding cash shortages and excesses are all made easier with the use of the cash budget.

4. The budgeted balance as of January 31, 2018 is as follows

Budgeted Balance Sheet as of January 31, 2018 for Skulas Company

Cash $619,000 [(7)] is an asset.

660,000 in accounts receivable [(2)]
820,000 items in stock [(8)]
1,175,600 in net property, plant, and equipment
Assets totaled $3,274,600.

Accounts payable for liabilities and stockholders' equity total 410,000 [(9)]
182,000 in long-term obligations