Qatar University College of Business and Economics Department of Accounting and Information System Management Accounting — ACCT 116 Group Project -Spring 2013 SUBMISSION DEADLINE: THURSDAY 23 MAY 2013 Student Learning Outcomes: 1. Solve accounting relating problems; and 2. Work effectively in teams. A&A Corporation A&A Corporation, a rapidly expanding specialist photocopier manufacturer, is in the process of formulating plans for next year. The director of marketing has completed her sales budget and is confident that sales estimates will be met or exceeded. The following budgeted sales figures show the growth expected and will provide the planning basis for other corporate departments. Budgeted sales in $ Budgeted sales in $ January February March April May June 1 800 000 2 000 000 1 800 000 2 200 000 2 500 000 2 800 000 July August September October November December 3 000 000 3 000 000 3 200 000 3 200 000 3 000 000 3 400 000 You, as a group of 4 students acting as FOUR assistant chief accountants, have been given the responsibility for formulating the cash budget, a critical element during a period of rapid expansion. The following information provided by operating managers will be used in preparing the cash budget: 1. A&A Corporation has experienced an excellent record in debtors’ collection and expects this trend to continue. 60% of billings are collected in the month after the sale and 40% in the second month after the sale. Uncollectable accounts are negligible and will not be considered in this analysis. 2. The purchase of raw materials is A&A’s largest expenditure; the cost of these items equals 50% of sales. Prior experience shows that 80% of creditors are paid by A&A one month after receipt of the purchased materials, and the remaining 20% are paid the second month after receipt. 3. Hourly wages depend on sales volume and are equal to 20% of the current month’s sales. These wages are paid in the month incurred. 4. General and administrative expenses are…