04 / 2018 Q1 /2019 02 / 3015 03 / 2019 04 /2019 Your 2019 8.500 10.000 38 500 Budgetand saloon in units 8,DOO 12/000 80 5 80 Saling price par unit in V 640,000 150,000 3.0807000 Total budicabad sales 8,500 10 000 12.000 38,500 3.90 4 680 Added: Desired anding inventory 5.100 11,600 13,600 13 900 16,680 43 1 80 Production Toul Needs 3,240 3.600 5.100 3.900 3.240 10 00 12,780 89 940 Acquired production 8,360 12,780 Production 6,360 10,000 30 940 Madrisk par unit (pounch) 41,800 50,000 44 000 195,700 Production ninth Added: Desind anding inwinter 15,000 13,000 21,000 32,400 23,400 60,800 73,000 65.000 36.300 123,100 Toul Needs 19.000 23,000 Like Beginning inventory 20,000 21.000 20,000 40 800 54.000 42 000 65.300 201 100 Maximrisk to be purchased (pounds] 132,400 163 000 136.000 1950500 606.300 Manurisk In ba purchased 8360 10,800 12,780 39 940 Units of producion Diract labor per unit 16 720 30 004 17,600 15.560 70,860 Direalaba Labor hours naquined 10 Hourly wage run in V 167 200 300 000 5 1761000 355,600 Total direct labor coils 16,720 30,000 17,600 15,560 75 860 10,032 13,000 10,560 5 15,336 $ 47.50 Indirect labor [90.60/DLHI 5.016 5.180 7.684 13,564 Employan welfare [$1 6/DLH) 16,751 32.DO0 121 160 40 856 127,BOB 8.360 10,040 13,760 341940 Facilities (50.5/DLH) 50.160 76 680 234,640 Variable mig- OH casts 60.DOU Salary and wijn 50,600 50,600 202,400 Manufacturing Overhead Budget 16,000 Sowiremint fits 6,500 6.500 6.500 6,500 7.200 7.200 7,300 7NO S 11,500 11 500 S 11.500 11 510 46 000 10.600 6.600 91600 6 600 5 33,400 14,000 24,000 14,000 24,000 5 46,000 Cuipriciation aspanca 3.000 3.100 3.000 13,090 113,400 109400 112,400 105400 444,600 163,560 5 165,400 5 165,300 9 186 060 5 684,140 Total mig- OH costs 12,960 5 18,432 15 606 6E.BRE Advertising Salas cumminion 51,840 73, 738 79,300 63,784 5 267,552 Salary: Salad mam 18,000 38,000 341000 152,000 3,600 3.600 S 31600 14,400 2,400 2400 2.400 5 Ensurlainment doquarries Induration 6DO 600 600 2,40 Sding Expense Budget 400 5 Government lid 400 400 1,60 300 300 300 5 1.300 3000 STOOD 12,000 Lipniciation 2.BU Other usparisi Toul selling doorsis 113.800 141 160 143TOO0 127,480 5307440 40 848 40.848 163,302 Salary: Management Team 40,848 5 40848 5 17/000 17 000 68,000 Salary: Support stalls 17000 17,DO0 3 150 3.150 Insurance 2,150 5 2.150 3.600 Gowiremint firm 1.200 1 200 2.400 Adminhave Expense Facili 1.400 1,400 S 1.400 1410 5.60 10.000 TO DOO Lipnication 800 3,30 Other usparrish Toul admin. appincas 73.496 205,5012 1301000 5 163.000 5 1361000 5 19500 5 736.30080% in the same month 104/000 5 125,600 $ 10 01800 $ 156,730 Expecte 204 in the following month 16,000 24,480 32,400 5 25 800 Toul curh disbursements 104,000 113,920 5 154,080 5 133,300 5 181,910 $ 697,120 Toal budigabad salon 8007000 $ 640,000 5 680,000 8007000 $ $60,000 5 4,5807000 60% in the same month 4807000 384,000 408.000 4801000 576,000 Juuu Onh Expected Collection 40% in the following month 2807000 320.000 356.000 272.000 $ 320,000 Toal curh callactions 420 040 7607000 5 704.000 664,000 752,000 5 646,000 $ 4,1967000 Computer 80,000 $ apul Spendit Vwhichis 20,000 5 701000 Toul 150,000 5 1507000 Beginning cinch balance 61,512 -13,116 5 43,486 5 Add: Cash collections 704,000 664,000 752,000 646,000 5 3,016,000 Toul cinch available 704000 725,512 5 734,684 5 038,486 5 3,016,000 Lance Cath disburcimints Materials 123.920 $ 154,080 $ 133,300 $ 181,910 $ 509,120 Dirat Labor 167,200 5 300 000 176,000 $ 355,600 708.800 Manufacturing overhead 163,560 165,400 165,300 186,060 684,340 Selling ispinsin 113,800 5 141,160 S 1487000 5 127,480 530,440 Admin. Buran 73,998 73,958 73,958 205,901 Equipment purchas 150,000 1501000 Dividand Toul disbursement 642.478 738 638 656.308 075,074 3,052,502 Excuse [deliciancy) 61.521 -13, 116 42.486 36 510 -36.501 Financing: Borrowing Toul financing Ending cinch balance 61,521 -13,116 42.485 -36512 -361501PNR Co., Ltd. Cost of Goods Sold Budget For the Year Ended December 2019 Beginning finished goods inventory S 58,320 Add: Direct materials Beginning raw materials inventory 5 40,000 Add: Raw materials purchased 404,200 Less: Ending raw materials inventory 44,800 Raw materials used in production 399,400 Add: Direct labor 798,800 Add: Mfg. overhead ($3 / DLH) 239,640 Cost of goods manufactured 1,437,840 Ending finished goods inventory 84,240 Cost of goods sold 1,411,920PNR Co., Ltd. Budgeted Income Statement For the Year Ended December 31, 2019 Budgeted sales in units 38,500 Total budgeted sales 3,080,000 Cost of goods sold S 1,411,920 Gross margin S 1,668,080 Selling expenses S 530,440 Excess profit 1,137,640 Less: Fixed expenses Manufacturing overhead 444,600 Selling expenses 530,400 Admin. Expenses S 295,992 Total fixed expenses S 1,270,992 Operating profit S -133,352 Less: Interest expense S 2,227 Pretax profit S -135,579 Less: Taxes (assumed) -47,453 Net profit -88,126PNR Co., Ltd. Budgeted Balance Sheet For the Year Ended December 2019 Assets: Cash -36,592.00 Accounts receivable 384,000.00 Inventory S 84,240.00 Total current assets S 431,648.00 Other assets 558,585.65 Total assets 990,233.65 Liabilities and Stockholders' Equity Accounts payable 39,180.00 Total liabilities S 39,180.00 Common stock $ 1,000,000.00 Retained earnings S -88,126.35 Total liabilities and stockholders' equity S 990,233.654. You are the CEO of PNR Co., Ltd. and your team has prepared a budget for 2019 by quarter as shown in the following sheets. 4.1. Discuss how you think about the proposed budget and the performance of the company. What can you suggest to improve both the business operations and the budgeting? (10 points) 4.2. Suppose budgeted sales for quarter 1 and quarter 2 are to be revised down from 8,000 and 8,500 units respectively. Explain how these changes will affect the budgets. Recommend some strategies to tackle the drop in sales and improve the performance in 2019. You may present a revised master budget to support your argument. (15 points)