Sales Forecasts for the first quarter of 2018:
January	11,000	units
February	13,000	units
March	14,000	units
Unit selling price		$100
Prepare the Sales Budget for Jan, Feb, and March.

 2 In addition to the info in problem #1, the company requires   20% of next month's budgeted sales as ending finished goods   inventory each month. Ending inventory for 12/31/17 was   2,200 units. The Sales forecast for April is 20,000 units.            



Prepare the Production Budget for Jan, Feb, and March.  



      3In addition to the info in problem #2, it takes 4 lbs of material   to produce one finished good unit. The company requires   50% of next month's production as raw materials ending    inventory each month. Ending inventory for 12/31/17 was 22,800 lbs.   Units to be produced in April were 15,000. Material costs $3 per pound.            



Prepare the Raw Materials Purchases Budget for Jan, Feb, & March.              



   4   In addition to the info in problem #2, it takes 45 minutes to   prepare one unit of final product. Production workers make   $25 per hour, and no overtime is necessary.              



Prepare the Direct Labor Budget for Jan, Feb, and March.





    5  In addition to the info in problem #2, it costs $4.5 per unit produced   for variable manufacturing overhead, plus $50,000 per month   for fixed manufacturing overhead.              



Prepare the Manufacturing Overhead Budget for Jan, Feb, & March.                



     6 Using the info from problems #3, #4, & #5, calculate the cost of   producing one unit of final product (round to the nearest whole dollar).



      Using the info from problems #1 and #6, calculate the Cost of Goods Sold   Budget for Jan, Feb, & March.                      



  7 In addition to the info in problem #1, the following cost behavior   patterns are budgeted for the operating expenses each month:   Fixed Costs: $15,000 Admin Salaries, $6,000 Depreciation, $3,000 Advertising   Variable Costs per unit sold: $4 Sales Commissions, $2 Supplies, $3 Marketing   Mixed Costs: Utilities $4,000 plus $3 per unit sold              Prepare the Operating Expense Budget for Jan, Feb & March.                  



8  Using the info from the previous 6 problems, make an Income Statement   in good format for Jan, Feb, & March, and for the Total Quarter 1/1/18 - 3/31/18.   Also calculate the Gross Margin Ratio for the quarter ending 3/31/18.                  



9  In addition to the info in problem #1, and based on past experience, the   company expects to collect 90% of the month's sales in the current month,   and 10% in the month following the sale. The accounts receivable balance   at 12/31/17 was $100,000 and is deemed fully collectible.            Prepare the Cash Receipts Budget for Jan, Feb, & March.   Also calculate the Accounts Receivable balance on 3/31/18.              



       10 In addition to the info from previous problems, the following cash     disbursements were made each month:      - Equipment purchases $85,000 in Jan, $60,000 in Feb, & $75,000 in March.    - Dividends paid of $200,000 in Jan, $300,000 in Feb and $400,000 in March.   Materials purchases are paid for 100% in the month of purchase.   Operating expenses include $6,000 of Depreciation each month, which is a    non-cash expense.                



11 Prepare the Cash Disbursements Budget for Jan, Feb, & March, which should also   include the cash payments for materials, labor, MOH, and operating expenses.  

 

The bank requires a minimum cash balance at the end of each month of $500,000.   The company has a $500,000 line of credit with $0 outstanding balance as of 1/1/18.   Interest on the line of credit is 12% annually, and is paid at the end of each month.   Ending cash balance on 12/31/17 was $285,000.            



  In addition to the info in problems #10 and #11, create Comprehensive Cash   Budget for Jan, Feb, and March.                      



  In addition to the info from problems #10 & #12, the following balances are as of 3/31/18:   Equipment, net of Accum. Deprec. =  $389,560     Bonds Payable = $250,000 (one annual payment in July)    Interest Payable = $15,000 (due in July)     Beginning Retained Earnings Bal 1/1/18 = $290,743    Common Stock = $170,000            

    Balance Sheet in good format as of 3/31/18.              

Reminders/Hints:        Values of Raw Materials Ending Inventory & Finished Goods Ending Inventory   will need to be calculated, & don't forget the Accounts Receivable balance.   Ending Retained Earnings will need to be calculated as well.   Total Assets must equal Total Liabilities + Total Equity to balance.