Budget project budget for a year for a company. Please use a separate tab for each segment (sales, inventory, direct material, direct labor, overhead, and cash). Sales begins with 5,000 units and increases2% per month the sale price at the beginning of the year is $28 per unit on May 1 we intend to raise our price per unit to $29 on October 1 we intend to raise our price per unit to $30 15% of sales are cash Inventory begins with 1,150 units Maintain an ending balance each month equal to 25% of next month production Direct material 2 pounds of raw material needed for each unit of production Begin with raw materials of 3,000 pounds End each month with 30% of next month needed material Cost per pound starts the year at $1.25 On July 1 we expect a price increase of $ 0.20 per pound Direct labor Each unit produced uses 1 hour of type one labor and .5 hours of type two labor Type one labor is paid $12 per hour Type two labor is paid $20 per hour Overhead Indirect material is 5% of production (units) Repairs and maintenance is 2% of production (units) Sales commissions are 3% of sales (dollars) Depreciation is $500 per month Fixed labor (overhead) is $800 per month Insurance and taxes are $300 and $250 per month respectively Cash The bank charges a 2% fee on card purchases (cash purchases) 5% of credit sales are collected in the month of the purchase 85% of credit sales are collected in the month following the month of purchase 9% of credit sales will be collected in the month following

A dividend of $4,000 is paid at the end of each quarter (3/31, 6/30, 9/30 and 12/31) Equipment of $20,000 will be purchased on May 15. The company must maintain a minimum cash balance of $5,000 per our debt covenant. The company has a line of credit for short-term borrowing. The interest rate on the line of credit is 5%. Interest will be paid monthly on the line of credit. Balance sheet information Accounts receivable on November 30 was $ 105,000 Accounts receivable on December 31 was $ 110,000 Cash on December 31 was $11,000

Corrections:

The project states the following:

Accounts receivable on November 30 was $ 105,000

Accounts receivable on December 31 was $ 110,000

It should say:

Accounts receivable Sales for November was $105,000

Accounts receivable Sales for December was $110,000

Equipment purchase price should be $30,000