1) Prepare the master budget for a merchandising company for 2024. You only sell one item.
2) The master budget consists of multiple but interdependent budgets that lay out your company's financial goals. Each Excel tab is a separate budget that is part of the master budget.
3) Only fill in the grey cells.
4) Start below, with the assumptions you provide. 2024 will be the first year your company operates. Note that there are no "right" answers to your assumptions, as long as they make logical sense (i.e. no negative expenses or units sold) they will be counted as correct.
5) Note that your company uses absorption costing only - therefore the budgets you create will use accounting rules that conform to GAAP. For all payments, assume you pay cash at the time of purchase. Assume there is no depreciation on new fixed asset purchases during the year.

Use the numbers that are already provided but feel free to change them and fix anything that is incorrect. Show work please.

Quarterly Sales Budget Budgeted Sales in Units Unit Selling Price Percentage of sales collected in the quarter of sale Percentage of sales collected in the quarter after sale Quarterly Merchandise Purchases Budget Cost of each unit Desired Ending Merchandise Inventory in units Quarterly SG\&A Expense Budget Variable SG\&A expense per unit Fred SG\&A Expenses per quarter: Advertising Owner/Operator Salary Insurance Headquarters Rent Depreciation Property Tax Capital Expenditures Budget Purchases of fixed assets Budgeting Assumptions Corp. First Year of Operations - 2024 \begin{tabular}{|lr|} \hline \multicolumn{2}{|c|}{ Each Quarter } \\ \hline & 7,000 \\ \hline$ & 40 \\ \hline & 70% \\ \hline & 30% \\ \hline \end{tabular} \begin{tabular}{|rr|} \hline$ & 15 \\ \hline & 300 \\ \hline \end{tabular} $ \begin{tabular}{|lr|} \hline$ & 1,500 \\ \hline$ & 25,000 \\ \hline$ & 200 \\ \hline S & - \\ \hline$ & 2,375 \\ \hline$ & 2,000 \\ \hline \end{tabular} $(1,000,000 Corp. Sales Budget For the Year Fnded December 31, 2024 Owarier \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline & \multicolumn{2}{|c|}{1} & \multicolumn{2}{|c|}{2} & \multicolumn{2}{|c|}{3} & \multicolumn{2}{|c|}{4} & \multicolumn{2}{|c|}{ Full Year } \\ \hline Budgeted Unit Sales & 5 & 7,000 & $ & 7,000 & $ & 7,000 & $ & 7,000 & $ & 28,000 \\ \hline Selling Price per Unit & 5 & 40 & $ & 40 & $ & 40 & $ & 40 & s & 40 \\ \hline Total Sales & s & 280,000 & $ & 280,000 & s & 280,000 & s & 280,000 & s & 1,120,000 \\ \hline \end{tabular} Sehedule of Expected Cash Collections \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Beginning Accoints Recervable } & \multicolumn{2}{|c|}{1} & \multicolumn{2}{|c|}{2} & \multicolumn{3}{|c|}{3} & \multicolumn{2}{|c|}{4} & \multicolumn{2}{|c|}{ Full Year } \\ \hline & 5 & - & s & 84,000 & 5 & & 84,000 & 5 & 84,000 & s & 252,000 \\ \hline Of Sales - Carth Collected & 5 & 196,000 & 5 & 84,000 & & & & & & s & 280.000 \\ \hline Q2 Sales-Cash Collecied & & & 5 & 196,000 & 5 & & 84,000 & & & s & 280,000 \\ \hline Qs Saler - Carh Collected & & & & & s & & 196,000 & $ & 84,000 & s & 280,000 \\ \hline O4 Sales - Cash Collocied & & & & & & & & s. & 196,000 & s & 196,000 \\ \hline Tosat Caxh Collections & 5 & 196,000 & 5 & 280,000 & 5 & & 280,000 & $ & 280,000 & s & 1,036,000 \\ \hline \end{tabular} Corp. Merchandise Parchases Budget (in Dollars) For the Year Ended December 31, 2024