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 S 360,000. At the end of each quarter, ABC Company requires to have units in finished goods inventory Each cabinet uses C sq. ft. of steel during the manufacturing process. The cost of steel for 2020 is estimated to be B 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 tabour hrs to produce Direct Labour costs SIG 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 60 % 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 04 2019 were $1.500.000 sq.ft ld to Search X 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 Q2 03 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 equal 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 5145,000 For Cost of goods sold (COGS): 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 i to search Schedule of receipts from customers Cash Sales Credit Sales Qtr 1 Receipts by Quarter Qtr 2 Qtr 3 2021 Otr 1 Qtr 4 Accounts Receivable - 31st Dec 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total Payments 401% 60 % Cash Sales Credit Sales Collection of Credit sale in the quarter of the sal Collection of Credit sale in the following quarter 0.81 02 Schedule of expected payments for Direct materials 2021 Payments by Quarter Qtr 2 Qtr 3 Purchases Qtr 1 Qtr 4 Qtr 1 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 708 30 $ Complete the following Balance Sheetat Bist December 2020 Aneta Current Assets Cash Accounts receivable Finished goods inventory Raw materials inventory Total Current Asset $ Arrated from information provided Balance Sheet at ist December 2010 Awets Current Aucts cash Ants receivable Finished goods inventory Raw materials inventory Total Current Assa statement of Retained in December 2020 Opening balance Netice Less Dividends Closing balance Property Plantement Less: Accumulated depreciation Total asut Property. Plant cuipment Less Accumulo depreciation Total Latities and shareholders Liabilities and Shareholders Equity Labasties Accounts payable Bank Loan Shareholders levity Common Stock Retained Earnings Total Shareholders tout Totallaties and Shareholders Accounts payable Shareholders fully Common stock Retained Earne Total Shareholders to 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 S 360,000. At the end of each quarter, ABC Company requires to have units in finished goods inventory Each cabinet uses C sq. ft. of steel during the manufacturing process. The cost of steel for 2020 is estimated to be B 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 tabour hrs to produce Direct Labour costs SIG 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 60 % 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 04 2019 were $1.500.000 sq.ft ld to Search X 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 Q2 03 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 equal 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 5145,000 For Cost of goods sold (COGS): 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 i to search Schedule of receipts from customers Cash Sales Credit Sales Qtr 1 Receipts by Quarter Qtr 2 Qtr 3 2021 Otr 1 Qtr 4 Accounts Receivable - 31st Dec 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total Payments 401% 60 % Cash Sales Credit Sales Collection of Credit sale in the quarter of the sal Collection of Credit sale in the following quarter 0.81 02 Schedule of expected payments for Direct materials 2021 Payments by Quarter Qtr 2 Qtr 3 Purchases Qtr 1 Qtr 4 Qtr 1 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 708 30 $ Complete the following Balance Sheetat Bist December 2020 Aneta Current Assets Cash Accounts receivable Finished goods inventory Raw materials inventory Total Current Asset $ Arrated from information provided Balance Sheet at ist December 2010 Awets Current Aucts cash Ants receivable Finished goods inventory Raw materials inventory Total Current Assa statement of Retained in December 2020 Opening balance Netice Less Dividends Closing balance Property Plantement Less: Accumulated depreciation Total asut Property. Plant cuipment Less Accumulo depreciation Total Latities and shareholders Liabilities and Shareholders Equity Labasties Accounts payable Bank Loan Shareholders levity Common Stock Retained Earnings Total Shareholders tout Totallaties and Shareholders Accounts payable Shareholders fully Common stock Retained Earne Total Shareholders to Totalities and Shareholders