Bella Manufacturing Ltd (BML) produces and distributes Rose 20 20 , a specialised fertilizer for roses The information below about BML's operations has been assembled to assist budget preparation The company is preparing its master budget for the first quarter of 2020 The budget will detail each months activity and the activity for the quarter in total The master budget will be based on the following information Selling price is $60 per unit in 2020 and will not change for the first two quarters of 2020 Actual and estimated sales are as follows Actual 2020 Estimated 2021 November 10,000 units January 11,000 units December 12,000 units February 10,000 units March 13,000 units April 11,000 units May 11,000 units The company produces enough units each month to meet that months sales plus a desired inventory level equal to 20 of next months estimated sales Finished Goods inventory at the end of December 2020 consisted of 2,200 units at a variable cost of $33 each The company purchases enough raw materials each month for the current months production requirement and 25 of next month's production requirements Each unit of product requires 5 kilograms of raw material at $0 60 per kilogram There were 13,500 kilograms of raw materials in inventory at the end of December 2020 BML pays 40 of raw material purchases in the month of purchase and the remaining 60 in the following month Each unit of finished product requires 1 25 labour hours The average wage rate is $16 per hour Variable manufacturing overhead is 50 of the direct labour cost Fixed overhead costs (per month) are as follows Factory supervisor's salary $75,000 Factory insurance 1,400 Factory rent 8,000 Depreciation of factory equipment 1,200 Credit sales for the month are 60 of the total sales The company collects 50 of the credit sales during the first month following the month of sale and 50 during the second month Variable selling and administrative expenses consist of $4 for shipping and 10 of sales for commissions Total fixed selling and administrative expenses are as follows Advertising $300 Depreciation 9,000 Insurance 250 Salaries 4,000 Other 14,550 The company will purchase assets for use in the sales office at a cost of $300,000, which will be paid cash at the end of January 2021 The monthly depreciation expense on the additional capital assets will be $6,000, starting January The balance sheet as of December 31, 2020, is as follows Assets Cash $80,000 Accounts receivable 612,000 Inventory Raw materials $8,100 Finished goods 72,600 80,700 Plant and equipment 1,000,000 Less accumulated depreciation 100,000 900,000 Total assets $1,672,700 Liabilities and Equity Accounts payable $24,000 6 long term notes payable 900,000 Common shares 735,000 Retained earnings 13,700 Total liabilities and shareholders' equity $1,672,700 Additional information All cash payments except purchases of raw materials are made monthly as incurred All borrowings occur at the beginning of each month, and all repayments occur at the end of the month Borrowings and repayments may occur in any amount All interest on borrowed funds is paid at the end of each month at a rate of 0 5 per month A minimum cash balance of $30,000 is required at the end of each month QUESTION For the first three months of 2021, prepare The Cash budget (use Excel worksheet Cash budget) PLEASE ALSO POST A SNIP OF THE FORMULAS USED ON EXCEL 5 a Cash budget January February March Quarter $30,000 $0 $0 Cash balance, beginning Operating cash receipts Total (from Sales) OLOI 0 30,000 OLOI 0 0 0 0 Operating cash payments $0 $0 0 0 0 0 Raw Materials Purchases Direct labour Manufacturing overhead Selling and administrative Purchase of equipment Total $0 0 0 0 0 0 $0 0 0 0 0 0 0 0 0 0 0 0 2 0 0 Net operating cash inflows (outflows) Interest on notes payable Excess (deficiency) of cash available Borrowing Repayment Interest on bank loan (0 5 per month) Ending balance OOOO Oo oo OOO OLO $30,000 Check 0 0 0 January Deficiency in cash X 005X $30,000, X (rounded) January and February Borrowing x 005 March $169,749 $94,481 x 005 $376

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Bella Manufacturing Ltd. (BML) produces and distributes Rose 20-20 , a specialised fertilizer for roses. The information below about BML's operations has been assembled to

Bella Manufacturing Ltd. (BML) produces and distributes Rose 20-20, a specialised fertilizer for roses. The information below about BML's operations has been assembled to assist budget preparation. The company is preparing its master budget for the first quarter of 2020. The budget will detail each months activity and the activity for the quarter in total. The master budget will be based on the following information:

Selling price is $60 per unit in 2020 and will not change for the first two quarters of 2020. Actual and estimated sales are as follows:

Actual 2020	Estimated 2021
November: 10,000 units	January: 11,000 units
December: 12,000 units	February:10,000 units
	March: 13,000 units
	April: 11,000 units
	May: 11,000 units

The company produces enough units each month to meet that months sales plus a desired inventory level equal to 20% of next months estimated sales. Finished Goods inventory at the end of December 2020 consisted of 2,200 units at a variable cost of $33 each.

The company purchases enough raw materials each month for the current months production requirement and 25% of next month's production requirements. Each unit of product requires 5 kilograms of raw material at $0.60 per kilogram. There were 13,500 kilograms of raw materials in inventory at the end of December 2020. BML pays 40% of raw material purchases in the month of purchase and the remaining 60% in the following month.

Each unit of finished product requires 1.25 labour-hours. The average wage rate is $16 per hour.

Variable manufacturing overhead is 50% of the direct labour cost.

Fixed overhead costs (per month) are as follows:

Factory supervisor's salary	$75,000
Factory insurance	1,400
Factory rent	8,000
Depreciation of factory equipment	1,200

Credit sales for the month are 60% of the total sales. The company collects 50% of the credit sales during the first month following the month of sale and 50% during the second month.

Variable selling and administrative expenses consist of $4 for shipping and 10% of sales for commissions.

Total fixed selling and administrative expenses are as follows:

Advertising	$300
Depreciation	9,000
Insurance	250
Salaries	4,000
Other	14,550

The company will purchase assets for use in the sales office at a cost of $300,000, which will be paid cash at the end of January 2021. The monthly depreciation expense on the additional capital assets will be $6,000, starting January.

The balance sheet as of December 31, 2020, is as follows:

Assets
Cash		$80,000
Accounts receivable		612,000
Inventory: Raw materials	$8,100
Finished goods	72,600	80,700
Plant and equipment	1,000,000
Less: accumulated depreciation	-100,000	900,000
Total assets		$1,672,700
Liabilities and Equity
Accounts payable		$24,000
6% long-term notes payable		900,000
Common shares		735,000
Retained earnings		13,700
Total liabilities and shareholders' equity		$1,672,700

Additional information:

All cash payments except purchases of raw materials are made monthly as incurred.

All borrowings occur at the beginning of each month, and all repayments occur at the end of the month. Borrowings and repayments may occur in any amount.

All interest on borrowed funds is paid at the end of each month at a rate of 0.5% per month.

A minimum cash balance of $30,000 is required at the end of each month

QUESTION: For the first three months of 2021, prepare The Cash budget (use Excel worksheet "Cash budget) PLEASE ALSO POST A SNIP OF THE FORMULAS USED ON EXCEL.

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5 a. Cash budget January February March Quarter $30,000 $0 $0 Cash balance, beginning Operating cash receipts: Total (from Sales) OLOI 0 30,000 OLOI 0 0 0 0 Operating cash payments $0 $0 0 0 0 0 Raw Materials Purchases Direct labour Manufacturing overhead Selling and administrative Purchase of equipment Total $0 0 0 0 0 0 $0 0 0 0 0 0 0 0 0 0 0 0 2 0 0 Net operating cash inflows (outflows) Interest on notes payable Excess (deficiency) of cash available Borrowing* Repayment Interest on bank loan (0.5% per month)** Ending balance OOOO Oo oo OOO OLO $30,000 Check 0 0 0 *January: Deficiency in cash +X-005X = $30,000, X = ?????? (rounded) **January and February: Borrowing x .005 = ????? March: $169,749 - $94,481 x.005 = $376