ABC Company makes steel tool cabinets for offices. They are in the process of preparing a Master Budget including the Operating budget, Cash Statement, Income Statement and Balance Sheet for 2020. The yearly budget is broken into quarters. The year end is 31st December 2020. Your group has been requested to compile a master budget for the fiscal year 2020. Sales price per filing cabinet is . There are 800 tool cabinets in finished goods inventory at the end of 2019 with a value of $ 360,000. At the end of each quarter, ABC Company requires to have B units in finished goods inventory Each cabinet uses sq. ft. of steel during the manufacturing process. The cost of steel for 2020 is estimated to be 8 per sq. ft. ABC Company currently has 30,000 sq. ft. of steel in the beginning inventory. At the end of each quarter, ABC Company wants to have D of ending inventory Each cabinet require E machine hours an direct labour hrs to produce. Direct Labour costs SG per direct our hour ABC Company allocates manufacturing overhead costs based on the estimated machine hours. Estimated manufacturing overhead cost for 2020 are and are all variable. . For each quarter, it is estimated that 40% of sales will be cash and % will be credit sales. Of the credit sales, 80% pay in the quarter of the sale and 20% pay in the following quarter. Credit sales from Q4 2019 were $1,300,000 Direct labour costs and manufacturing overhead costs are paid for in cash in the quarter they occurred Assume operating expenses occur evenly throughout the year and are all paid in cash. . For each quarter, 70 of material purchases are paid for in cash in the quarter of the purchase and 30% are paid in the following quarter. Purchases of materials from Q4 2019 were $1.500.000 sq. ft. 60 d to o Search % Edit & Create Additional details continued ABC Company will pal $60,000 in dividends in Q4 Currently, the cash balance in the bank is $15,000. ABC Company wants to maintain a minimum cash balance of $10,000 in the bank for each quarter. Budgeted sales volumes are: Q1 02 Q3 04 Selling and Administration expenses for the budgeted year are as follows; Variable Cost: Delivery costs are based on 0.3 per sales unit. Commissions are based on 0.1% of sales value. . . Fixed Costs: Accounting & professional services Administrative & Sales Salaries Advertising Computer costs Depreciation Office Supplies Printing Insurance Property taxes Rent Utilities Total Fixed Costs $ 1800 77000 9000 4200 35000 2300 1400 1200 500 20000 3000 155400 ABC Company will purchase a new machine on 1/1/2020 worth $700,00 and will make two equ payments. The first payment will be in Q1 and the second in Q3. Assume the machine was purchased at the beginning of the year. Taxation is 30 on taxable income and paid at the end of Q4 each year, Balance sheet information as at 31st December 2019 is as follows: PPE $100,000 Accumulated Depreciation $100,000 Common Stock $280,000 Retained Earnings $145,000 For Cost of goods sold (COG) Add total costs of production - Beginning Finished goods - Ending Finished goods inventory Interest of 9000 on loans is paid in total at the end of the year and is a fixed cost . . o Schedule of receipts from customers Receipts by Quarter Qtr 2 Qtr 3 2021 Qtr 1 Cash Sales Credit Sales Qtr 1 Qtr 4 Accounts Receivable - 31st Dec 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total Payments Cash Sales Credit Sales Collection of Credit sale in the quarter of the sall Collection of Credit sale in the following quarter 40 % 60 % 0.8 0.2 Schedule of expected payments for Direct materials Payments by Quarter Qtr 2 Qtr 3 2021 Qtr 1 Purchases Qtr 1 Qtr 4 Accounts Payable : 31st Dec 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total Payments Purchases paid in cash in the same quarter Purchases paid in the following quarter 70% 30% S $ Recreated from information provided Balance Sheet at 31st December 2019 Complete the following Balance Sheet at 31st December 2020 Anets Current Assets Cash Accounts receivable Finished goods inventory Raw materials inventory Total Current Assets s $ statement of Retained ning seet December 2020 Opening balance Net income Current Auto cash Accounts receivable Finished goods inventory Raw materials inventory Total Current Assets Less Dividends Closing balance Property Plant equipment Less: Accumulated depreciation Totalets Property. Plantement Less Accumulated depression Totalas Liabilities and Shareholders Equity Liabilities Accounts payable Bank Loan Shareholders quity Common Stock Betained Earnings Total Shareholders Equity Totalbies and shareholders Equity Labies and Shareholders Evil Llabilities Accounts payable Shareholders Common Stock Total Shareholders for Totalities and Shareholders ABC Company makes steel tool cabinets for offices. They are in the process of preparing a Master Budget including the Operating budget, Cash Statement, Income Statement and Balance Sheet for 2020. The yearly budget is broken into quarters. The year end is 31st December 2020. Your group has been requested to compile a master budget for the fiscal year 2020. Sales price per filing cabinet is . There are 800 tool cabinets in finished goods inventory at the end of 2019 with a value of $ 360,000. At the end of each quarter, ABC Company requires to have B units in finished goods inventory Each cabinet uses sq. ft. of steel during the manufacturing process. The cost of steel for 2020 is estimated to be 8 per sq. ft. ABC Company currently has 30,000 sq. ft. of steel in the beginning inventory. At the end of each quarter, ABC Company wants to have D of ending inventory Each cabinet require E machine hours an direct labour hrs to produce. Direct Labour costs SG per direct our hour ABC Company allocates manufacturing overhead costs based on the estimated machine hours. Estimated manufacturing overhead cost for 2020 are and are all variable. . For each quarter, it is estimated that 40% of sales will be cash and % will be credit sales. Of the credit sales, 80% pay in the quarter of the sale and 20% pay in the following quarter. Credit sales from Q4 2019 were $1,300,000 Direct labour costs and manufacturing overhead costs are paid for in cash in the quarter they occurred Assume operating expenses occur evenly throughout the year and are all paid in cash. . For each quarter, 70 of material purchases are paid for in cash in the quarter of the purchase and 30% are paid in the following quarter. Purchases of materials from Q4 2019 were $1.500.000 sq. ft. 60 d to o Search % Edit & Create Additional details continued ABC Company will pal $60,000 in dividends in Q4 Currently, the cash balance in the bank is $15,000. ABC Company wants to maintain a minimum cash balance of $10,000 in the bank for each quarter. Budgeted sales volumes are: Q1 02 Q3 04 Selling and Administration expenses for the budgeted year are as follows; Variable Cost: Delivery costs are based on 0.3 per sales unit. Commissions are based on 0.1% of sales value. . . Fixed Costs: Accounting & professional services Administrative & Sales Salaries Advertising Computer costs Depreciation Office Supplies Printing Insurance Property taxes Rent Utilities Total Fixed Costs $ 1800 77000 9000 4200 35000 2300 1400 1200 500 20000 3000 155400 ABC Company will purchase a new machine on 1/1/2020 worth $700,00 and will make two equ payments. The first payment will be in Q1 and the second in Q3. Assume the machine was purchased at the beginning of the year. Taxation is 30 on taxable income and paid at the end of Q4 each year, Balance sheet information as at 31st December 2019 is as follows: PPE $100,000 Accumulated Depreciation $100,000 Common Stock $280,000 Retained Earnings $145,000 For Cost of goods sold (COG) Add total costs of production - Beginning Finished goods - Ending Finished goods inventory Interest of 9000 on loans is paid in total at the end of the year and is a fixed cost . . o Schedule of receipts from customers Receipts by Quarter Qtr 2 Qtr 3 2021 Qtr 1 Cash Sales Credit Sales Qtr 1 Qtr 4 Accounts Receivable - 31st Dec 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total Payments Cash Sales Credit Sales Collection of Credit sale in the quarter of the sall Collection of Credit sale in the following quarter 40 % 60 % 0.8 0.2 Schedule of expected payments for Direct materials Payments by Quarter Qtr 2 Qtr 3 2021 Qtr 1 Purchases Qtr 1 Qtr 4 Accounts Payable : 31st Dec 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total Payments Purchases paid in cash in the same quarter Purchases paid in the following quarter 70% 30% S $ Recreated from information provided Balance Sheet at 31st December 2019 Complete the following Balance Sheet at 31st December 2020 Anets Current Assets Cash Accounts receivable Finished goods inventory Raw materials inventory Total Current Assets s $ statement of Retained ning seet December 2020 Opening balance Net income Current Auto cash Accounts receivable Finished goods inventory Raw materials inventory Total Current Assets Less Dividends Closing balance Property Plant equipment Less: Accumulated depreciation Totalets Property. Plantement Less Accumulated depression Totalas Liabilities and Shareholders Equity Liabilities Accounts payable Bank Loan Shareholders quity Common Stock Betained Earnings Total Shareholders Equity Totalbies and shareholders Equity Labies and Shareholders Evil Llabilities Accounts payable Shareholders Common Stock Total Shareholders for Totalities and Shareholders