A. Create a sales budget for the year ended December 31, 2017

B. Create a schedule of expected cash collections for the year ended December 31, 2017

File Edit Insert a a Format Help Caliber . 10 . BIUSA - ES -3.53 I E F G H Assumptions Endless Mountain Company manufactures a single product that is popular with outdore recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2017. The company's CFO in consultation with various managers across the company is providing the latest Balance Sheet and a set of assumptions to help create the 2017 budgets. Budgeted Unit sales: Q1 2017 Q2 2017 03 2017 Q4 2017 Q1 2018 12.000 37.000 15,000 25.000 11000 Budgeted Selling Price per unit All sales are credit sales ignore Uncollectible Mounts. They are minimal Percentage of Sales collected in the quarter of the sale Percentage of Sales collected in the subsequent quarter 15 18 19 20 21 22 Quarter ending finished goods inventory as a percent of next quarter's unitats Yards of raw material required for each unit Cost per yard of raw material Quarter ending raw materials inventory as a percent of next Quarter's production needs Estimated ending raw materials inventory on December 31, 2017 (in yards) $300 10% 5.000 DIRECTIONS Assumptions Row 4 - Row 52 Blance Sheet for 2016 SOLUTION SOLUTION SOLUTIONS SOLUTION SOLUTIONS SOLUTIONS SOLUTE e Calibri BIUSA A . . Estimated ending raw materials inventory on December 31, 2017 (in yards) Percent of purchases paid for in the quarter of the purchase Percent of purchases paid for in the quarter following the purchase cDET 5,000 70% 30% Direct labor hourly rate Direct labor hours required to finish each unit of finished goods Direct labor hours are paid in the quarter incurred $18.00 0.25 Budgeted variable manufacturing overhead per direct labor-hour Quarterly fixed manufacturing overhead (including depreciation expense on equipment) Quarterly depreciation on equipment The number of direct labor hours is used as the allocation base for the budgeted plantwide overhead rate All overhead costs (excluding depreciation) are paid in the quart incurred $3.00 $ 150,000 $20,000 34 $1.25 37 38 The budgeted variable selling and administrative expense per unit sold Fixed selling and administrative expenses: Advertising Executive Salaries Insurance Property tax Depreciation expense (selling and administrative) All selling and administrative expenses (excluding depreciation) are paid in the quarter incurred $25.000 $64.000 $12.000 $8,000 $8,000 42 $30.000 Minimum cash balance at the end of each quarter 46 Any borrowing takes place on the first day of the quarter To the stanno cible than wani ta intercana DIRECTIONS Assumptions Row 4 -- Row 52 Balance Sheet for 2016 SOLUTION SOLUTION SOLUTIONS SOLUTION SOLUTIONS SOL DELL Q a Calibri - 12. BIU$A - 5 CD $30,000 Minimum cash balance at the end of each quarter Any borrowing takes place on the first day of the quarter To the extent possible, the company will repay principal and interest on any borrowings on the last day of the fourth quarter The company's lender imposes simple interest per quarter on any borrowing at a rate of 50 Dividends declared and paid in each quarter $15,000 The company uses a LIFO inventory flow assumption. This means that the most recently purchased raw materials are the "First out" to production and the most recently completed finished goods are the "first out to customers. Assumptions Row 4 -- Row 52 Balance Sheet for 2016 SOLUTION SOLUTION 2 SOLUTION 3 SOLUTION S BIUS A. Endless Mountain Company Balance Sheet December 31, 2016 Assets $46,200 260,000 11,250 32.250 Current Assets Cash Accounts Receivable Raw Materials Inventory (4,500 yards) Finished Goods Inventory (1,500 Units) Total Current Assets Plant and Equipment: Buildings and Equipment Accumulated Depreciation Plant and Equipment, net Total Assets 12 13 14 $349,700 900,000 (292.000) 17 608.000 $957.700.00 Liabilities and Stockholders' Equity 20 Current Liabilities: 21 Accounts Payable $158,000 22 Stockholders's Equity: Common Stock $419,800 Retained Earnings Total Stockholders' Equity 799.700 Total Liabilities and Stockholders' Equity olders' Equity $957.700.00 DIRECTIONS Assumptions Row 4 - Row 52 Balance Sheet for 2016 SOLUTION 1 SOLUTION 2 SOLUTION 3