1 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.