Budgeting Project due Nov. 9th. Need to complete the template that's attached, on Excel with all the formulas. Please help! Appriciate it loads!

Tommy's Box Cars DATE: June 1, 2021 TO: FROM: OCSU Consulting Mark Swain, President, Tommy's Box Cars Master Budget for the fiscal year July 1, 2021 - June 30, 2022 SUBJECT: Our controller, Tommy Swain is negotiating with potential new Wood suppliers in Kentucky. We need the Large Box Car Division's Master Budget for the fiscal Year ended June 30, 2022 for our corporate strategie planning process, and we cannot wait for Tommy's retum from Kentucky We would like you to prepare the Large Box Car Division's Master Budget for the fiscal year ended June 30, 2022 The deliverables are as follows: 1. Sales budget, including a schedule of expected cash collections 2. Production budget 3. Direct materials budget, including a schedule of expected cash disbursements for materiais 4. Direct labor budget. 5. Manufacturing overhead budget. 6. Ending finished goods inventory budget calculating the expected value of the finished goods Inventory as of June 30, 2022. - 7. Selling and administrative expense budget. 8. Cash budget 9. Budgeted Income statement for the year ended June 30, 2022. 10. Budgeted balance sheet for June 30, 2022. All the Master Budget schedules except those marked with an asterisk for the Large Box Car Division should include a column for each quarter and a total column for the fiscal year. We only need annual totais for the budgeted financial statements (schedules 9 and 10) and we only need a year-end total for the value of finished goods Inventory (schedule 6). The electronic copy of the budgets are due 11/9/21 prior to 9:25 a.m. for all sections (on ground and online) On ground sections (9:25 and 10:50 classes) must tum in a paper copy of the project at the start of casson 11/9/21) You may work on this in groups of 2. Both names must be typed on the electronic & paper versions. No credit for late submissions. You can print more than one schedule per page, but do not have a page break in the middle of a budget schedule. I like to be able to view an entire budget schedule without flipping back and forth between pages Please also use a type font or between 10-12 points for printing, I've attached a brief description of the Large Box Car Division to the budget data Tommy gave me before be left for Kentucky. We eagerly await your results. Attached on Black Bourd you'll see a solution template to assist you in completing the project Sincerely, Mark Tommy's Box Cars During 2021-2022 focal year, the average cooling one or large box curs is expected to be $120 perc Car Division the units of Quarter First Second Third Eouth Box Car UNIT Sales 65.000 67.000 54,000 70,000 The collection pattern for Accounts Receivable is as follows: 40 percent of all sales are collected within the quarter in which they are sold 60 percent of all sales are collected in the following quarter. There are no bad debts/uncollectible accounts on July 1, 2021, the beginning of the first quarter of the new focal year (e. Beginning Finished Goods Due to high demand last year, the Large Box Car Division experts to have zero finished box cars in inventory Inventory Is Zero). To avoid having that problem in the coming fiscal year, the Large Box Car Division would like to have the ending inventory of Box Car at the end of each of the first three quarters equal to 25% of the budgeted sales for the next quarter. They would like to have 15,000 finished Box Carson hand on June 30, 2022. ? Quarter ind Third Fourth Ending FG Inventory of Box Cars as a % of the next quarter's budgeted 259 25% 25% sales Ending FG Inventory of Box Cars 2 ? 15,000 Each large box car requires an average of 5.0 feet of wood. The Large Box Car Division buys wood for $3.00 per foot and they expect the price to remain constant throughout the year. They expect to have 50,000 feet of wood (RAW MATERIALS) on hand as of July 1, 2021 (50,000 (53.00 = $150,000 - This is beginning Direct Material Inventory), the beginning of the first quarter of the fiscal year. At the end of each of the first three quarters, the Large Box Car Division would like to have their direct materials inventory quantity to equal 25 percent of the amount required for the following quarter's planned production. On June 30, 2022, the end of the fiscal year, Large Box Car Division would like to have 60,000 feet of wood on hand (This is ending Direct Material Inventory).. Quarter Second Third Fourth Ending DM inventory as a % of the next quarter's production 25% 25% 25% 7 requirement Ending DM inventory in feet 2 ? ? 60,000 The Large Box Car Division buys its wood on account. It pays for 25% of its purchases of direct materials in the quarter in which they were purchased and 75% in the quarter after they were purchased. Each large box car requires 4 hours of direct labor. Employees engaged in direct labor will be paid an estimated $13,00 per labor hour. Wages and salaries are paid on the 15 and 30 of each month. Variable manufacturing overhead is estimated to be 54.00 per direct labor hour for the coming fiscal year. All variable manufacturing overhead expenses are paid for in the quarter incurred. Fixed manufacturing overhead is estimated to total $110,000 each quarter, with $40,000 out of the total amount of $110,000 representing depreciation on machinery, equipment and the factory. All other fored manufacturing overhead expenses are paid in cash in the quarter they occur. The fixed manufacturing 3 Tommy's Box Cars overhead rate will be computed by dividing the year's total and manufacturing overhead by the year's budgeted direct labor hours. Round the feed overhead rate to the nearest penny selling and administrative expenses are expected to tota $90,000 each quarter, with $40,000 out of the Variable selling and administrative expenses are estimated to be $15.00 per box car sold Food total amount of $90,000 representing depreciation on the office space, furniture and equipment. Other than depreciation, all selling and administrative expenses are paid for in the quarter they occur. On June 30, 2022, the last day of the quarter, the Large Box Car Division plans to buy new machinery and equipment for $500,000. The new machinery and equipment will be acquired at the very end of the Dscal year so it will not be used in production and sales during the coming year and will not be deprecated until the following year. The Large Box Car Division expects to pay 30% down in cash and finance the remaining 70% of the equipment cost with a note payable from a local bank with whom they do business with. No interest payable will accrue on the equipment note payable until after June 30, 2022. The Division must maintain a minimum cash balance of $100,000. If after accounting for cash receipts and disbursements (including dividends) in the cash budget, the budgeted cash available cash falls below $100,000 in any quarter, the Division will need to borrow cash. They have arranged a line of credit allowing it to borrow in $10,000 increments (le, they can borrow $10,000 or $20,000 etc. but not an odd amount). Assume borrowing will take place at the beginning of any quarter in which the available cash would otherwise be below $100,000 so that at no time during the quarter will the cash balance fall below $100,000 (after payment of interest). If there is extra cash at the end of the quarter and there is borrowing outstanding, the division should pay down principal (diso in increments of $10,000). The bank charges the Division interest at the rate of 3% per quarter, Interest accrued in the quarter will be paid the first day of the next quarter (e.g. Qi's interest is not paid in cash until 2 and Q2's Interest will be paid in 03). As a fully owned subsidiary, the Large Box Car Division does not pay income taxes. All income taxes are charged to Tommy's Box Car's, the parent company. Large Box Car Division will pay dividends of $50,000 each quarter to its corporate parent, Tommy's Box Car's. The dividends must be paid, even if the Large Box Car Division has to borrow on its line of credit to make the payment The budgeted balance sheet for the Large Box Car Division on June 30, 2021 (which is the same as the budgeted balance sheet at the beginning of business July 1, 2021) is presented below. Tommy's Box Cars owns 100% of the Capital Stock of the Large Box Car Division LARGE BOX CAR DIVISION - TOMMY'S BOX CARS BUDGETED BALANCE SHEET JUNE 30, 2021 ASSETS Cash Accounts Receivable Raw Material Inventory Plant and Equipment 51,850,000 2,900,000 150,000 9.600.000 LIABILITIES & EQUITY Accounts Payable $800,000 Notes Payable 0 Capital Stock 3,500,000 Retained Earnings 10.200.000 TOTAL ASSETS $14.500.000 TOTAL LIAB. & SE $14.500.000 Sales Budget (July 1, 2021 - June 30, 2022) 03 Q2 03 04 Year Total Item Units Sold Selling Price Per Unit Total Budgeted Sales Revenues Production Budget 01 Q2 Q3 04 Year Total Budgeted Sales in Units Add: Desired Ending Invtory = Total Needed Less: Beginning Inventory Units to be produced Direct Materials Budget 01 02 93 24 Year Total Item Total Production of Box Cars Wood Feet per Car Total Wood Required (feet) Add: Desired Ending Wood (feet) Total Needs (feet) Less: Beginning Inventory Total DM to be purchased (feet) Cost per foot Total cost of direct materials purchases Direct Labor Budget 01 22 Q3 Year Total Item Total Production in Units X Direct Labor Hours per Unit = Total Direct Labor Hous Required X Labor Wage Rate = Total Direct Labor Costs Manufacturing Overhead Budget (MOH) Q1 02 23 Year Total 04 Item Variable MFG Overhead: Total direct labor hours x Variable overhead rate per DL Hour Total Variable MFG Overhead + Total Fixed Manufacturing Overhead = Total Manufacturing Overhead Less: Depreciation (non-cash expense) - Cash Disbursements for MFG Overhead Pre-Determined Overhead Rate Calculation Hint: Recall from Chapter 2 how you calculated your Pre-Determined Overhead Rate Total Budgeting MOH + "Cost Driver = MOH to be "Applied Per Driver Unit Selling and Admin Budget (S & A) 01 02 Q3 Year Total Item Variable Sales & Admin Expenses: Sales in Units X Variable Sales & Admin Rate per unit Variable Sales & Admin Expense + Total Fixed Sales & Admin Expense = Total Sales & Admin Expenses Less: Depreciation (non-cash expense) =Cash Disbisbursements for S & A Exp's Year Total Schedule of Cash Collections (Receipts) 01 92 2.100,000 03 Item Accts Rec Balance Forward First quarter sales Second quarter sales Third quarter sales Fourth quarter sales Total Cash Collections Year Total Item Schedule of Cash Disbursements 01 02 800,000 Accts Payable Balance Forward First quarter Purchases Second quarter Purchases Third quarter Purchases Fourth quarter Purchases Total Cash Payments Cash Budget Q1 02 Year Total 03 Item Beginning Cash Balance Add: Cash Collections = Total Cash Available Less: Cash Disbursements Direct Materials Direct Labor Manufacturing Overhead Selling & Administrative Equipment Purchases Dividends Total Disbursements Excess (Defidency) of cash available over disbursements Cash Budget (Financing & Repayment) 01 Q2 Year Total 00 03 Item Excess (deficiency) of cash available over disbursements - Interest Payments + Borrowing (at Beginning of QUARTER) - Repayments at the End of QUARTER) + Equip loan (at the end of the year) = Total Financing Ending Cash Balance $ Loan Balance for Interest Calculation $ $ per unit per unit Ending Finished Goods Inventory at Cost) Hint: Use the information/previously calculated above (1.e. your PDOH) to determine the product cost of one unit. Once completed, multiple the unit cost by the number of units in ending Inventory Ending Finished Goods Inventory Budget Quantity Cost (rate) Total Cost Production per Box Car per boxca Direct materials Direct labor Manufacturing overhead Production Cost per Box Car Ending finished goods inventory: Box Cars Ending finished goods inventory in dollars Amount Tommy's Box Cars - Large Pro Forma Income Statement For the Fiscal Year Ended June 30, 2022 Item Sales Cost of goods sold Gross margin Selling & administrative expenses Net operating Income Interest expense Net Income Tommy's Box Cars - Large Pro Forma Balance Sheet As of June 30, 2022 AND June 30, 2021 Assets June 30, 2022 Cash Accounts receivable Direct materials inventory Finished Goods inventory (box cars) Plant and equipment Total assets Liabilities and Stockholders' Equity June 30, 2022 Accounts payable Notes payable - equipment Letter of Credit outstanding Capital stock Retained Earnings Total liabilities and stockholders equity June 30 2021 $ 1,850,000 $ 2,900,000 $ 150,000 $ $ 9.600.000 $ 14,500,000 June 30 2021 $ 800,000 $ $ $ 3,500,000 $ 10,200,000 $ 14,500,000 ACCOUNTING EQUATION OUT OF BALANCE $0 $0