A B C D E F 1 Solution - Quarter 1 Quarter 2 Quarter 3 Quarter 4 2 Budgeted Revenues $500,000 $445,000 $455,000 $475,000 AW Statement of Cash Receipts For The Year Ended 30 June 2021 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Collection of current quarter sales $400,000 $356,000 $364,000 $380,000 $1,500,000 8 Collection of previous quarter sales $195,800 $100,000 $89,000 $91,000 $475,800 9 Total cash collections $595,800 $456,000 $453,000 $471,000 $1,975,800 10 11 Statement of Cash Disbursements 12 For The Year Ended 30 June 2021 13 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total 14 For direct materials $31,400 $36,697 $67,900 $42,033 $178,030 15 For payroll $188,000 $132,300 $172,000 $108,000 $600,300 16 For manufacturing overhead costs $85,300 $96,640 $75,800 $65,136 $322,876 17 For non-manufacturing costs $27,500 $29,000 $38,260 $45,000 $139,760 18 For machinery purchase $355,000 $355,000 19 For income taxes $119,500 $45,000 $45,000 $45,000 $254,500 20 Total cash disbursements $806,700 $339,637 $398,960 $305,169 $1,850,466 21 22 Cash Budget 23 For The Year Ended 30 June 2021 24 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total 25 Beginning cash balance $250,000 $250,000 $250,000 $250,000 $250,000 26 Add: Total cash collections $595,800 $456,000 $453,000 $471,000 $1,975,800 27 Total cash available $845,800 $706,000 $703,000 $721,000 $2,225,800 28 Less: Total cash disbursements $806,700 $339,637 $398,960 $305,169 $1,850,466 29 Cash balance before financing $39,100 $366,363 $304,040 $415,831 $375,334 30 Add: Borrowing $210,900 $210,900 31 Less: Interest payment $6,327 $3,026 $1,495 $10,848 32 Less: Principal repayment $110,036 $51,014 $49,850 $210,900 33 Ending cash balance $250,000 $250,000 $250,000 $364,486 $364,486 34 35 Cost of Goods Sold Schedule 36 For The Year Ended 30 June 2021 37 Direct Materials used $385,000 38 Direct Manufacturing Labour $265,000 39 Manufacturing Overhead Costs 40 Variable Costs $80,000 41 Factory Depreciation $85,300 42 Factory Supervision $40,000 43 Factory Power costs $57,000 44 Factory Maintenance Costs $80,000 45 Total Manufacturing Overhead Costs $342,300 46 Total Manufacturing Costs $992,300 47 Add: Beginning Work In Process Inventory SO 48 Total Work In Progress Inventory $992,300 49 Less: Ending Work In Process Inventory SO 50 Cost Of Goods Manufactured $992,300 51 Add: Beginning Finished Goods Inventory $558,500 52 Cost Of Goods Available For Sale $1,550,800 53 Less: Ending Finished Goods Inventory $649,300 54 Cost Of Goods Sold $901,50056 Income Statement 57 For The Year Ended 30 June 2021 58 Sales Revenue $1,875,000 59 Less: Cost of Goods Sold $901,500 60 Gross Profit $973,500 61 Non-Manufacturing Operating Costs 62 Product Design $24,000 63 Marketing $38,000 64 Distribution $76,000 65 Total Non-Manufacturing Operating Costs $138,000 66 Income Before Interest and Tax $835,500 67 Less: Interest Expense $10,848 68 Income Before Tax $824,652 69 Less: Income Tax Expense @ 40% $329,861 70 Net Income $494,791 71 72 Balance Sheet 73 30 June 2021 74 Assets 75 Current Assets 76 Cash $364,486 77 Accounts receivable $95,000 78 Direct materials inventory $347,833 79 Finished goods inventory $649,300 80 Prepaid Salary $335,300 81 Prepaid Manufacturing Overhead Costs $65,876 82 Prepaid Non-Manufacturing Operating Costs $1,760 $1,859,555 83 Property, plant and equipment: 84 Land $485,000 85 Building and equipment $853,000 86 Accumulated depreciation $135,100 $717,900 $1,202,900 87 Total $3,062,455 88 Liabilities and shareholders equity 89 Current Liabilities 90 Accounts payable $665,403 91 Income tax payable $194,861 $860,264 92 Shareholders Equity 93 Ordinary shares $800,000 94 Retained earnings $1,402,191 $2,202,191 95 Total $3,062,455
