Can someone do the Budgeted Balance Sheet?

Ls Resford president of Photo Artistry Company. was just concluding a budget meeting with his senion aff In was November of 20x4, and the group was discussing preparation of the firm's master budget for 206. 'Tve decided to go ahead and purchase the industrial robot we've been talking about. We'll make ic aywisition on January 2 of next yesr, and I expect if will take most of the year to train the personnel int rorganize the production process to take full advantage of the new eqpipment." In response to a question about financing the acquisition, Rexford replied as follows: "The robot will cos $950,000. There will also be an additional $50,000 in ancillary equipment to be purchased. wetl finance these purchases with a one-year $1,000,000 loan from Shark Bank and Trust Company. ret negotiated a repayment schedule of four cqual installments on the last day of each quarter. The metes rate will be 10 percent, and interest payments will be quarterly as well." With that the meetiag tovit op and the budget process was on. Phos Artisty Company is a manufacturer of metal picture frames. The firm's two product lines at designated as S (small frames; 57 inches) and L (large frames; 810 inches). The primary raw mulnals are flexible metal strips and 9 -inch by 24 -inch glass sheets. Each S frame requires a 2 -foot meal strip, an L frame requires a 3-foot strip. Allowing for normal breakage and scrap glass, the comjury can get cither four S frames or two L frames out of a glass sheet. Other raw materials, such as cabboud backing, are insignificant in cost and are treated as indirect maverials. Emily Jackson, Photo Anistry's controller, is in charge of preparing the master budget for 20.5 . She has gathered the followinginformation: 1. Sales in the fourth quarter of 20x4 are expected to be 50,000S frames and 40,000L frames. The ales manager predicts that over the next two years, sules in each product line will groa by 5.000 utits each quarter over the previous quarter. For example, $ frame sales in the first quarter of 20x5 are expected to be 55,000 units. 2. Ptoto Artistry's sales history indicates that 60 pereent of all sales are on credit, with the remainder of the sales in cash. The company's collection experience shows that 80 percent of the credit sales are collected during the quarter in which the sale is made, while the remaining 20 percent is collacted in the following quarter. (For simplicity, assume the company is able to collect 100 percent of its accounts receivable.) 3. The S frame sells for $10, and the L. frame sells for $15. These prices are expected to hold constant throughout 20x5. 4. The production manager attempts to end each quarter with enough finished-goods imentory in fach product line to cover 20 percent of the following quarter's sales. Moreover, an attempt is mode to end each quarter with 20 percent of the glass sheets needed for the following quarter's production. Since metal strips are purchased locally, the company beys them on a just-in-time bevis, inventory is negligible. 5. All direct-material purchases are made on account, and 80 perent of each quarter's purchases are paid in cash during the same quarter as the purchase. The other 20 pereent is paid in the neat quarter. 6. Indirect materials are porchased with cash as needed. Work-in-process is negligible. 7. Projected production costs in 205 are as follows: Case 9-45 Comperenersive Master Budget: Short-Term Financing; Acquistion of Pobotic Equpment (2092,93,95,96) 1. Total sales ravenue sth quarter: $1,600,000 7 Coot of poods sald: $3.650,000 8. Goss margin, $1,800,000 wets ais toulectel be zies. Ail so these cons will be paid is cash during ilse iparier incumed except foe sepreciatinn. 9. Photo Artistry's quarterly selling and axtministrative expenses are $100,000, paid in cash. 10. J mekson anticipates that dividends of $50,000 will be dectared and paid in cash each quarter. 11. Fhotw Artisiry's projected balance sheet as of December 31 , 20x4, follows: Aesuired: Prepare Pheeo Aristry Company's master budget foe 20x5 by completing the folewing sctacdules and satements. 1. Sales budyet: 2. Cash receipts budgec: 4. Direct-material budget: Metal ins: 5 frames to be produced x Hetal quanily per und (ft) Needed for $ trame production L tranes to be produced x Metal quantly per und of] Veeded for L Iname production Tued metal neoded for production; io te puchased (it) x frice per foot Cest of metal strips to be purchased Cars shests Stranies to be produced x Guss quarity per unit isheess Veded lor S lrame production 1 tranes to be produced x Gass quartfy per in isticots) leoded for L frane production Total glass neised ior pmotucion (theuts) fod 0esred undiry imencry beal glass roods lest fosered tegrring imerecry Qses in be puchased - Pros per ofues ethert Oea of ulas io te punchased Fot tem muleris puchases grotal and gintil 5. Cash ituknsements tuader. 0. summary casn Dunger: 7. Prepare a budgeted schedule of cost of goods manufactured and sold for the year 205. (Hist li the budget, actual and applied overhead will be equal.) 8. Prepare Photo Artistry's budgeted income statement for 205. (Ignore income taxes.) 9. Prepare Photo Artistry's budgeted statement of retained earnings for 205. 10. Prepare Photo Artistry's budgeted balance sheet as of December 31,20x.5. Ls Resford president of Photo Artistry Company. was just concluding a budget meeting with his senion aff In was November of 20x4, and the group was discussing preparation of the firm's master budget for 206. 'Tve decided to go ahead and purchase the industrial robot we've been talking about. We'll make ic aywisition on January 2 of next yesr, and I expect if will take most of the year to train the personnel int rorganize the production process to take full advantage of the new eqpipment." In response to a question about financing the acquisition, Rexford replied as follows: "The robot will cos $950,000. There will also be an additional $50,000 in ancillary equipment to be purchased. wetl finance these purchases with a one-year $1,000,000 loan from Shark Bank and Trust Company. ret negotiated a repayment schedule of four cqual installments on the last day of each quarter. The metes rate will be 10 percent, and interest payments will be quarterly as well." With that the meetiag tovit op and the budget process was on. Phos Artisty Company is a manufacturer of metal picture frames. The firm's two product lines at designated as S (small frames; 57 inches) and L (large frames; 810 inches). The primary raw mulnals are flexible metal strips and 9 -inch by 24 -inch glass sheets. Each S frame requires a 2 -foot meal strip, an L frame requires a 3-foot strip. Allowing for normal breakage and scrap glass, the comjury can get cither four S frames or two L frames out of a glass sheet. Other raw materials, such as cabboud backing, are insignificant in cost and are treated as indirect maverials. Emily Jackson, Photo Anistry's controller, is in charge of preparing the master budget for 20.5 . She has gathered the followinginformation: 1. Sales in the fourth quarter of 20x4 are expected to be 50,000S frames and 40,000L frames. The ales manager predicts that over the next two years, sules in each product line will groa by 5.000 utits each quarter over the previous quarter. For example, $ frame sales in the first quarter of 20x5 are expected to be 55,000 units. 2. Ptoto Artistry's sales history indicates that 60 pereent of all sales are on credit, with the remainder of the sales in cash. The company's collection experience shows that 80 percent of the credit sales are collected during the quarter in which the sale is made, while the remaining 20 percent is collacted in the following quarter. (For simplicity, assume the company is able to collect 100 percent of its accounts receivable.) 3. The S frame sells for $10, and the L. frame sells for $15. These prices are expected to hold constant throughout 20x5. 4. The production manager attempts to end each quarter with enough finished-goods imentory in fach product line to cover 20 percent of the following quarter's sales. Moreover, an attempt is mode to end each quarter with 20 percent of the glass sheets needed for the following quarter's production. Since metal strips are purchased locally, the company beys them on a just-in-time bevis, inventory is negligible. 5. All direct-material purchases are made on account, and 80 perent of each quarter's purchases are paid in cash during the same quarter as the purchase. The other 20 pereent is paid in the neat quarter. 6. Indirect materials are porchased with cash as needed. Work-in-process is negligible. 7. Projected production costs in 205 are as follows: Case 9-45 Comperenersive Master Budget: Short-Term Financing; Acquistion of Pobotic Equpment (2092,93,95,96) 1. Total sales ravenue sth quarter: $1,600,000 7 Coot of poods sald: $3.650,000 8. Goss margin, $1,800,000 wets ais toulectel be zies. Ail so these cons will be paid is cash during ilse iparier incumed except foe sepreciatinn. 9. Photo Artistry's quarterly selling and axtministrative expenses are $100,000, paid in cash. 10. J mekson anticipates that dividends of $50,000 will be dectared and paid in cash each quarter. 11. Fhotw Artisiry's projected balance sheet as of December 31 , 20x4, follows: Aesuired: Prepare Pheeo Aristry Company's master budget foe 20x5 by completing the folewing sctacdules and satements. 1. Sales budyet: 2. Cash receipts budgec: 4. Direct-material budget: Metal ins: 5 frames to be produced x Hetal quanily per und (ft) Needed for $ trame production L tranes to be produced x Metal quantly per und of] Veeded for L Iname production Tued metal neoded for production; io te puchased (it) x frice per foot Cest of metal strips to be purchased Cars shests Stranies to be produced x Guss quarity per unit isheess Veded lor S lrame production 1 tranes to be produced x Gass quartfy per in isticots) leoded for L frane production Total glass neised ior pmotucion (theuts) fod 0esred undiry imencry beal glass roods lest fosered tegrring imerecry Qses in be puchased - Pros per ofues ethert Oea of ulas io te punchased Fot tem muleris puchases grotal and gintil 5. Cash ituknsements tuader. 0. summary casn Dunger: 7. Prepare a budgeted schedule of cost of goods manufactured and sold for the year 205. (Hist li the budget, actual and applied overhead will be equal.) 8. Prepare Photo Artistry's budgeted income statement for 205. (Ignore income taxes.) 9. Prepare Photo Artistry's budgeted statement of retained earnings for 205. 10. Prepare Photo Artistry's budgeted balance sheet as of December 31,20x.5