Can i get help with the written summary report.

INFORMATION FOR NAPOLEON, INC. BUDGET PROJECT Napoleon, Inc. is a company that re-sells one product, a particularly comfortable lawn chair. An overseas contractor makes the product exclusively for Napoleon, so Napoleon has no manufacturing-related costs. As of 11/15, each lawn chair costs Napoleon $4 per unit. Napoleon sells each chair for $10 per unit. The estimated sales (in units) are as follows: Nov 15 11,250 Dec 15 11,600 Jan 16 10,000 Feb 16 11,400 Mar 16 12,000 Apr 16 15,600 May 16 18,000 June 16 22,000 July 16 18,000 Per an existing contract, the cost of each chair is scheduled to increase by 5% on March 1, 2016. In addition, because of increasing costs of plastic webbing, the cost is anticipated to increase by an additional 5% on May 1, 2016. To offset these increases, the company plans to raise the sales price to $11.25 per unit beginning May 1, 2016. The sales forecast (e. estimated sales in units) takes this price increase into account Thirty percent of any month's sales are for cash, and the remaining 70% are on credit. Thirty percent of the credit sales are collected in the month of sale, 50% are collected in the following month, and 16% are collected in the second month after the sale. The remaining receivables are deemed uncollectible. Bad debts are written off in the month the debt is deemed uncollectible (e.g. if the sale is made in January and is not collected by the end of March, it is written off in March.) No accrual for estimated bad debts is made in the month of sale. The firm's policy regarding inventory is to stock (i.e. have in ending inventory) 40% of the forecasted demand in units (ie., estimated sales) for the next month. Napoleon uses the first-in, first-out (FIFO) method in accounting for inventories. Forty percent of the inventory purchases are paid for in the month of purchase and the remaining 60% are paid in the following month (ie, all of the previous month's Accounts Payable are paid off by the end of any month.) Per a prior contract, a cash payment of $50,000 for equipment previously purchased is due in January. Another payment of $30,000 is due in February. Depreciation on the equipment previously purchased is included in the overhead cost detailed below (see item 9). Also, dividends of $12,000 are to be paid in March Monthly operating expenses consist of the following (if these are cash expenses, they are paid when incurred): Salaries and Wages $3,000 Sales Commissions 7% of sales revenue Rent $8,000 Other Variable Cash Expenses 6% of sales revenue Supplies Expense: See note $2,000 Other: See note S48,000 Note: Other general and administrative overhead is expected to be $48,000 per month. Of this amount, $24,000 represents depreciation and other non-cash expenses. The company maintains on hand one month's worth of supplies. The company must maintain a minimum cash balance of $15,000. Borrowing can make up shortfalls. For simplicity, assume that the bank will only lend (and accept repayments) in $1,000 increments. Ignore interest on the loan in your calculations, but minimize the amount borrowed and pay off any loans as soon as possible. Cash on hand as of December 31, 2015 is expected to be $15,000. In addition, there will be no notes payable as of this date. See below the other Balance Sheet accounts with their expected balances as of December 31, 2015: Supplies............. $ 2,000 Property, Plant and Equipment...... 1,050,000 Accumulated Depreciation............ 526,475 Common Stock........... 200,000 Retained Earnings........ 322,811 Required: You need to prepare a comprehensive 6-month budget, including supporting schedules and a report for the period January 1, 2016 to June 30, 2016 for Napoleon, Inc (a fictional company). This project must include: Sales Forecast and Budget Cash Receipts budget Purchase budget Cash Purchases Disbursements budget Operating Expense budget Summary Cash budget Budgeted Income Statement Budgeted Balance Sheet A written Summary Report Rounding is encouraged and you may ignore interest and taxes. A written summary report, outlining the main issues and problems identified during the budgeting process and suggestions for improving the budget forecast. Don't explain how you prepared the budget. Analyze the issues, including profitability, cash needs, and cost structure. Suggest at least 3 ways you can improve the business forecast for the next 6 months to a year. Test your suggestions by preparing revised budget schedule. Attached is an example of a budget report. Please answer all 9 requirements, esepcially the summary report, and show calculations and formulas in the answer. Thank you. Sales Forecast and Budget Cash Receipts budget Purchase budget Cash Purchases Disbursements budget Operating Expense budget Summary Cash budget Budgeted Income Statement Budgeted Balance Sheet A written Summary Report Napoleone Ballet Foremos motivo Ane 16 Novo Dec 15 Feb '16 Mar 10 May 10 June 18 20 B00 10.000 T14100 120.0 10000 000022030 10.000 1000S 10.00 $ 10.00 $ 10.00 $ 10.00 $ 11.25 1125 2250000 100003 BILD0320003 E3003027305 6mos to 0 000 Budged un Saling price per unit Total Bates O 000 Car Sales Credit 30% TON 00.750 74210 $ 141.750 173.250 202500EC7AEOS 232.000 65.000 STO Cash Sales 33.7505 34 LOOS 30.000 $ 54 2003 30.000 43,8005 On Sales T 10 31 200 70.000 70 300 54.000 109 200 Totalbes 2 WORK OOO000318.000 112500730337500 8.112500770%-78750 and so on Curter mot AR Cute 30% 1 month por AR Collections 50% 2 months Ar Collections 10% Uncaleche 2x Come months Sales Canest month AR Collection month prior AR Colecions 2 months AR Collections Totala coleccions Napoleon, les Cash Collection For the mosending Ane 16 10 FOD 10 TO June CO 1200 3600 400 0.750 762503 21.000 23.040 25.200 32.100 42.525 $1,9755 40 000 35.000 30.000 42 od 5460 70 875 5 12500 18200 2.700 13:44 17.4725 104200510021200EUTELHE2143723 282,000 507,400 22,075 80472 342347 Bad DE 3248 200 3.102 3.300 4.368 20.118 3,150 40 Dededingin Napok Puchose Budget For the montage 10 Dec 15 15 . TO OCO 4000 4900 15000 CO 4 COO Budged A desde Total Les mer Re Purchases Feb 18 511 400 4100 16200 4560 1540 Mar 16 12000 6240 10240 #800 197440 550 A10 15000 7200 22.800 8240 1.no May 1 18.000 8.00 20.000 7200 1960 June 10 32000 7200 20.200 8,800 2040 33 000 38 800 127.000 35.000 4005 4005 4201 430$ 4415 441 Gost part Proses 2005 46.000 201209 40% SPM P Pad in Monte Purchase Naporeon Ochedule of Chinese Merch Purchase Forenede A18 Cases 1 month of AP Codectos TO 25.104 WYM 35 276 2016 total 106 207041 29244 6172 Fred Operating pera Balades and we Rent Supplies Expo Other Overhead Chec-Depotion Viable Operatine Expenses 3,000 Correios, o R 0,000 De Vale Cash Expornes, Nevenue 2.000 2 DOO 34.000 Napoleon, Inc. Operating Expense Budget For the 6 mos ending June 18 Salaries and Wages Sales Commissions Rent Other Variable Cash Expenses Supplies Expense Other - Overhead Other-Depreciation Bad Debt Expense Total operating expenses Depreciation and noncash Items Bad Debt Expense Cash disbursements for operating expenses Janio Feb 116 MIC Apr10 May 10 June 16 6 mos total 3,000 $ 3,000 $ 3,000 $ 3.000 5 3,000 $ 3,000 $ 18,000 7.000 7.980 8.400 10.920 14.175 17,325 $ 85,800 8.000 8.000 8,000 8,000 8.000 8000 $ 48,000 8.000 8.840 7.200 9,380 12.150 14,850 $ 56,400 2,000 2000 2.000 2,000 2000 2,000 $ 12.000 24,000 24 000 24,000 24,000 24,000 24,000 $ 144,000 24 000 24 000 24,000 24,000 24.000 24,000 5 144.000 3150 3248 2,800 3.192 3.360 4368 S 20.118 77.150 79.058 79,400 84 472 90 685 97,543 508,318 24.000 24 000 24 000 24.000 24.000 24,000 $ 144,000 3,150 3248 2 800 3.192 3,360 4.308$ 20.113 5 30,000 120ES 52 600357 280S 63 3255 6. 1755 344,200 Equipment payment - January Equipment payment. February Dividends - March Minimum Monthly Cash Budget 5 S 5 S 50.000 30,000 12 000 15,000 Napoleon, Inc. Cash Budget For the mos ending June 18 Jan '16 S 15 000 $ 104 200 119 200 Feb '16 15,000 5 106.132 121.132 Mar '16 15.344 112 300 127 844 Apr 16 May '16 June 16 Omos total 15 52915 15 687 5 15,571 $ 22.331 134 325 171 315 2145725 342847 149,857 187 202 230,1435 935.178 43 200 50.000 50.000 43,968 51,820 30,000 50.515 52.600 61 690 57 200 Cash balance, beginning Add cobections from customers Total cash available Less disbursements: Cast disbursements for merchandise purch Cash disbursements for operating expenses Equipment purchases Dividends Total cash disbursements Excess of receipts over disbursements Financing Borrowing- Repayments-tote Total financing Cash balance, ending 70.306 87,847 $ 03 325 69,175 $ $ $ 10.601 157.022 AZS73121 363,526 344.200 80,000 12 000 799720 135,452 12.000 115115 12.520 143 200 (24000 125,788 (2016 11070 30887 39000 20.000 20/000 39.000 15 0005 3.000 15.000 3000 15.000 15205 EX (32.000) (32.000 15.5715 $ (15,000 $ (15.000 50RS 62,000 2.000 0 135,452 5 Napokon, Budgeted income Statement For the & mosanding June 16 Jan 10 Fob 10 Mar 10 Ap 10 MONO Jura TO 100,000 $714.000 $120.000 $ 136.000 3202500 27,500 M0,000 Cost of goods sold 40.000 49 440 65520 77 07020 75440 404000 (48004)(72004) 80 000 04005 700 VO/012025 150/4303 584.562778 (7200-4.2)+(10500-441) TAO179.000 79 400 MA12 PO 005 97543 500210 171502103 T.03 52907 95734 45409 Sale Gost of goods sold Girgin Total aperating expenses A PHI Napoleonino Budgeted Do Ghost 30-05-18 Assets Cuno CA Accounts receivable Supplies Merdandse inventory plant and opmert Bubings and Equipment Accurated Depreciation Tous 56.121 149.025 2.000 30,762 241,400 OSO DOO 670475 37995 53,078 Lisbies and Equity Accounts payat Capital shock Read eaming Totables and equity 200,000 301045 567,045 2010 FIFO Calculation wan Feb Mor Apr May Jun Beg Inventory $ 16,000 $ 18,240 $ 19,200 $ 20,208 $ 30,240 $ 38,808 Beg Inventory Units Purchases 4,000 $ 42.240 4.580 $ 46,500 4,800 $ 56,448 6,240 $ 69,552 7,200 $ 36 430 8,800 $ 89.964 Purchases Units COGS 10,500 5 40,000 11,640 S 45,000 13,440 S 49,440 16,560 $ 65,520 19,000 $ 77,868 20,400 $ 07.020 COGS Ending Units Inventory 10,000 18 240 11,400 S 19,200 12,000 $ 26 208 15,000 $ 30.240 18,000 $ 38,800 22,000 $ 31.752 Ending Inventory - Units 4,500 4,800 6.240 7.200 8,800 7,200