Can someone please help me with questions 1-3. I am lost on how to get this started! Please and thank you!

	Sales Budget
		Q1	Q2	Q3	Q4	Year Total
	Units Sold	50,000				50,000
	Selling Price Per Unit	115				115
	Total Sales Revenues	5,750,000	-	-	-	5,750,000
	Schedule of Cash Collections
		Q1	Q2	Q3	Q4	Year Total
	Q4 Sales Collected Q1
	Q1 Sales	2,300,000	3,450,000
	Q2 Sales
	Q3 Sales
	Q4 Sales
	Total Collections
	Production Budget
		Q1	Q2	Q3	Q4	Year Total
	Budgeted Sales					-
	Plus: Desired Ending	-
	Total Needs	-				-
	Less: Beginning Inventory	-
	Required Production	-				-

SUBJECT Master Budget for the fiscal year July 1, 2019June 30, 2020 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, 2020 for our corporate strategic planning process, and we cannot wait for Tommy's return from Kentucky. We would like you to prepare the Large Box Car Division's Master Budget for the fiscal year ended June 30, 2020. The deliverables are as follows: 1. 2. 3. Sales budget, including a schedule of expected cash collections. Production budget. Direct materials budget, including a schedule of expected cash disbursements for materials. During 2019-20 fiscal year, the average selling price for large box cars is expected to be $115 per car. The Large Box Car Division forecasts the following units of sales uarter Box Car sales First 50,000 Second 75,000 Fourth 85,000 ir 60,000 The collection pattern for Accounts Receivable is as follows o 40 percent of all sales are collected within the quarter in which they are sold o 60 percent of all sales are collected in the following quarter o There are no bad debts/uncollectibles. Due to higher than expected demand this year, the Large Box Car Division expects to have no finished box cars in inventory on July 1,2019, the beginning of the first quarter of the new fiscal year (i.e. Beginning Finished Goods Inventory is 0 Units). 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 30% of the budgeted sales for the next quarter. They would like to have 25,000 finished Box Cars on hand on June 30, 2020. uarter First Second ir Fourth Ending FG inventory of Box Car as a % of the next quarter's budgeted sales Ending FG inventory of Box Cars? 30% 30% 30% 25,000 Each large box car requires an average of 3 feet of wood. The Large Box Car Division buys wood for $7.50 per foot and they expect the price to remain constant throughout the year. They expect to have 50,000 feet of wood on hand as of July 1,2019 (50,000 $1.00 50,000 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 30,2020, 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). arter First Second Third Fourth Ending DM inventory as a % of the next quarter's production requirement Ending DM inventory in pounds 25% 25% 25% 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 4.00 hours (240 minutes) of direct labor. Employees engaged in direct labor will be paid an estimated S12.00 per labor hour. Wages and salaries are paid on the 15th and 30h of each month. Variable manufacturing overhead is estimated to be $5.00 per direct labor hour for the coming fiscal year Fixed manufacturing overhead is estimated to total $180,000 each quarter, with S70,000 out of the total amount of $180,000 representing depreciation on machinery, equipment and the factory. All other fixed manufacturing overhead expenses are paid in cash in the quarter they occur. The fixed manufacturing overhead rate will be computed by dividing the year's total fixed manufacturing overhead by the year's budgeted direct labor hours. Round the fixed overhead rate to the nearest penny Variable selling and administrative expenses are estimated to be $15.00 per box car sold. Fixed selling and administrative expenses are expected to total $90,000 each quarter, with $25,000 out of the total amount of S90,000 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, 2020 the Large Box Car Division plans to buy new machinery and equipment for $1,200,000 The new machinery and equipment will be acquired at the very end of the fiscal year, so it will not be used in production and sales during the coming year and it will not be depreciated until the following year. The Large Box Car Division expects to pay 25% down in cash and finance the remaining 75% 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, 2020 The Division must maintain a minimum cash balance of S50,000. If after accounting for cash receipts and disbursements (including dividends) in the cash budget, the budgeted cash available cash falls below $50,000 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 (i.e. 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 $50,000 so that at no time during the quarter will the cash balance fall below $50,000 (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 (also in increments of $10,000). The bank charges the Division interest at the rate of 2% per quarter. Interest accrued in the quarter will be paid the first day of the next quarter (e.g. Q1's interest is not paid in cash until Q2) 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 S50,000 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, 2019 (which is the same as the budgeted balance sheet at the beginning of business July 1,2019) 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, 2019 ASSETS LIABILITIES & EQUITY Cash Accounts Receivable Raw Material Inventory Plant and Equipment S450,000 Accounts Payable 3,500,000 Notes Payable $150,000 4,000,000 9.675,000 375,000 Capital Stock 9.500,000 Retained Earnings TOTAL ASSETS S13.825,000 TTL LIAB. & SE S13825.000