this question is based on the previous self study questions in this chapter and on t 691256

This question is based on the previous Self Study Questions in this chapter and on the Santiago Pants example in the text. Prepare a cash budget given the revised figures for Santiago Pants provided in Self Study Questions 1 and 2. Assume, however, that cash collections will decrease by the same amount as the decrease in sales except that the ending accounts receivable level will decrease by another $20,000. Lower payments for purchases of materials equal to the reduction in purchases will be required, but ending accounts payable also will decrease by $2,000. Payments for income taxes will decrease to $300,000.

Self Study Questions 1: The self study questions in this chapter provide a comprehensive budgeting problem based on data from the Santiago Pants example in the chapter. Refer to the data for Santiago Pants in the chapter example. Assume that the sales forecast was decreased to 150,000 units with no change in price. Managers revised their estimate of property taxes to $51,500 (reduced from $60,000) based on a recent property tax law change. The new target ending inventories follow

Self Study Questions 2: Recall that Santiago Pants has a sales forecast of 150,000 units and new target ending inventories as follows:

In addition, you learn that income tax expense is $500,000. Variable marketing costs change proportionately with volume; that is, the amount now is (150,000 ÷ 160,000) of the amount in the text example. Prepare a budgeted schedule of marketing and administrative costs and a budgeted income statement.