Can you help me understand the items in green on this spreadsheet?

December Unit Sales Sales Price Desired Ending Inventory for Finished Goods Desired Ending Inventory for Material Units Cost of one lb.of materials (1 lb =1 material unit) Units of Direct Materials to make one unit Minutes of Direct Labor to make one unit Direct Labor Costs per Hour Overhead Costs percentage of Direct Labor Minimum cash balance (Assume you start with this) Cash collections in month of sale Cash collections in first month after sale Cash collections in second month after sale Cash Payments in month of purchase Cash Payments in the first month after purch Selling Costs per month (for cash budget) Administrative Costs per month (for cash budget) Annual Interest Rate for Letter of Credit Annual Interest Rate Earned on Excess Cash Sales Revenue for November Sales Revenue for December Material Purchases for November Material Purchases for December Depreciation Expense for the quarter (Operating Exp) Income Tax Rate $ $ $ $ $ $ $ $ $ $ $12 20% 10% 0.30 4 12 15 145% 10,000 70% 25% 5% 75% 25% 12,000 13,000 12% 4% 300,000 290,000 22,000 25,000 4,000 22% Sales Budget For the Quarter Ended March 31, 2016 Basis Unit Sales Selling Price Total Sales Revenue Unit sales Add Ending Finished Goods Inventory (20% of last months sales) Less Beginning Finished Goods Inventory Total Units to be Produced Production Budget For the Quarter Ended March 31, 2016 Basis 20% of next months Materials Budget For the Quarter Ended March 31, 2016 Material Requsted for Finished Goods Add Ending Inventory materials Less Beginning Inventory materials Material Units to be Purchased Cost of one lb.of materials (1 lb =1 material unit) Cost of Materials Purchases Basis Total units x4 $ 0.30 DIRECT LABOR BUDGET For the Quarter Ended March 31, 2016 Basis Units to be Produced Production Rate Hours of Direct Labor Direct Labor Rate of Pay Total Direct Labor Costs Direct Labor Costs Overhead Percental Total Overhead Costs 12Min/60=.20 15 Overhead Budget For the Quarter Ended March 31, 2016 Basis Direct labor budget 145% of Dir Lab Costs Cash Receipts of Sales Revenue For the Quarter Ended March 31, 2016 Basis Sales Revenues Cash Receipts from November Cash Receipts from December Cash Receipts for January Cash Receipts for February Cash Receipts for March Total Cash Receipts 70% 25% 5% Cash Payments for Materials Purchased For the Quarter Ended March 31, 2016 Basis Materials Purchase Cash Payments in December Cash Payments in January Cash Payments in February Cash Payments in March Total Cash Payments Beginning Cash Balances Add Cash Receipts from Sales Total Cash Available Less Cash Disbursements Cash Payment for Material Purchased Cash Payment for Direct Labor Cash Payment for Overhead Cost Cash Payment for selling cost Cash payment for Administrative Costs Total Cash Disbursements Excess of Cash Available after disbursements Financing: Borrowings Repayments Interest Total Financing Ending Cash Balance Overall Cash Budget For the Quarter Ended March 31, 2016 Basis given (january) Cash Receipt Budget Cash Payment Budget Direct Labor Budget Overhead Budget given given 12% 4% Income Statement For the Quarter Ended March 31, 2016 Basis Revenue Sales Revenue Interest Revenue Total Revenue Expenses Cost of Goods Sold Production Costs Material Costs Purchases Add Beginning Inventory Less ending Inventory Total Material Costs Direct Labor Costs Overhead Cossts Total Production Costs Add Beginning Finished Goods Inventory Less Ending Finished Goods inventory Total Cost of Goods Sold Sales Budget Annual Interest of 4% Materials Budget Direct Labor Budget Overhead Budget Contribution Margin Selling Costs Administrative Costs Depreciation Expenses Income before Taxes Income Tax Income after Taxes Statement of CashFlow For the Quarter Ended March 31, 2016 Basis Cash From Operations Net Income Add Depreciation Add Change in Current Liabilities Less Change in A/R Less Change in Inventory Net Cash from Operations Cash from Finanancing Activities Change in Loans Net cash from Financing Activities Change in Cash Balance Cash Balance Income Statement January 25,500 February 26,500 $12 March 28,000 $12 April 28,000 $12 May 28,500 $12 $12 $ $ 12,000 $ 13,000 $ 12,000 $ 13,000 $ 12,000 $ 13,000 $ 12,000 $ 13,000 $ 12,000 13,000 $ 4,000 $ 4,000 $ 4,000 $ 4,000 $ 4,000 es Budget Ended March 31, 2016 January 25,500 $ 12.00 $ $ 306,000 $ February 26,500 12.00 $ 318,000 $ March Total Quarter 1 28,000 80,000 12.00 $ 12.00 336,000 $ 960,000 ction Budget Ended March 31, 2016 January $ 25,500 $ 5,300 5,100 $ 25,700 $ February 26,500 $ 5,600 5,300 26,800 $ March Total Quarter 1 28,000 $ 80,000 5,600 16,500 5,600 16,000 28,000 $ 80,500 rials Budget Ended March 31, 2016 $ January 102,800 $ 10,720 10,280 103,240 $ February 107,200 $ 11,200 10,720 107,680 $ $ 0.30 30,972 $ 0.30 32,304 $ ABOR BUDGET Ended March 31, 2016 January $ 25,700 $ 0.20 5,140 15 $ 77,100 $ February 26,800 $ 0.20 5,360 15 80,400 $ March Total Quarter 1 28,000 $ 80,500 0.20 0.20 5,600 16,100 15 15 84,000 $ 241,500 ead Budget Ended March 31, 2016 January $ 77,100 $ 145% $ 111,795 $ February 80,400 $ 145% 116,580 $ March Total Quarter 1 84,000 $ 241,500 145% 145% 121,800 $ 350,175 s of Sales Revenue Ended March 31, 2016 January $ 306,000 $ February 318,000 $ March Total Quarter 1 336,000 $ 960,000 15,000 72,500 214,200 301,700 $ 14,500 76,500 222,600 313,600 $ or Materials Purchased Ended March 31, 2016 January $ 30,972 $ February 32,304 $ $ $ 6,250 23,229 - 7,743 24,228 March Total Quarter 1 112,000 $ 322,000 11,200 33,120 11,200 32,200 112,000 $ 322,920 0.30 33,600 $ 0.30 96,876 15,300 79,500 235,200 330,000 $ March 33,600 8,076 15,000 87,000 306,000 302,100 235,200 945,300 Total Quarter 1 96,876 6,250 30,972 32,304 29,479 $ 31,971 $ Cash Budget Ended March 31, 2016 January $ 10,000 $ 301,700 311,700 February 68,326 $ 313,600 381,926 $ 29,479 77,100 111,795 12,000 13,000 243,374 68,326 68,326 $ $ e Statement Ended March 31, 2016 January $ 25,200 33,276 $ 25,200 94,726 March 127,975 330,000 457,975 Total Quarter 1 206,301 945,300 1,151,601 31,971 80,400 116,580 12,000 13,000 253,951 127,975 33,276 84,000 121,800 12,000 13,000 264,076 193,899 94,726 241,500 350,175 36,000 39,000 761,401 390,200 127,975 $ 193,899 February March Total Quarter 1 306,000 $ 306,000 318,000 $ 195.00 318,195 336,000 $ 393.00 336,393 960,000 588.00 960,588 30,972 3,097 3,230 37,300 77,100 111,795 226,195 5,100 5,300 225,995 32,304 3,230 3,360 38,894 80,400 116,580 235,874 5,300 5,600 235,574 33,600 3,360 3,360 40,320 84,000 121,800 246,120 5,600 5,600 246,120 96,876 9,688 9,950 116,514 241,500 350,175 708,189 16,000 16,500 707,689 $ 80,005 12,000 13,000 4,000 51,005 11,221 39,784 $ nt of CashFlow Ended March 31, 2016 January $ $ $ $ $ $ $ 39,784 4,000 51,005 301,700 30,972 (237,882) 82,621 12,000 13,000 4,000 53,621 11,797 41,824 $ February $ $ $ $ $ 189,579 $ 41,824 4,000 53,621 313,600 32,304 90,273 12,000 13,000 4,000 61,273 13,480 47,793 $ March $ $ $ $ $ 445,349 $ 47,793 4,000 61,273 330,000 33,600 252,899 36,000 39,000 12,000 165,899 36,498 129,401 Total Quarter 1 $ $ $ $ $ $ $ $ $ $ $ $ $ 476,666 $ 129,401 12,000 165,899 945,300 96,876 (237,882) 1,111,594 Quarter 1 Congratulations! You have just been hired as controller for a growing company that manufactures green pro Your first task is to create the budget for the first quarter of 2016. This involves completing budgets for Jan The CFO wants to see the first quarter budget before you complete the rest of the year, as adjustments may b 1. Sales Budget for the 1st quarter 2. Production Budget for the 1st quarter 3. Materials Purchases Budget for the 1st quarter 4. Direct Labor Budget for the 1st quarter 5. Overhead Budget for the 1st quarter 6. Cash Receipts of Sales Revenue for the 1st quarter 7. Cash Payments for Material Purchases for the 1st quarter 8. Overall Cash Budget for the 1st quarter 9. Income Statement for the quarter ended March 31, 2016 10. Statement of Cash Flows for the quarter ended March 31, 2016 Several assumptions are needed to work into your models for computation. These are determined as follow This page illustrates all assumptions needed to create the master budget, income statement and statement of December Unit Sales Sales Price Desired Ending Inventory for Finished Goods Desired Ending Inventory for Material Units Cost of one lb.of materials (1 lb =1 material unit) Units of Direct Materials to make one unit Minutes of Direct Labor to make one unit Direct Labor Costs per Hour Overhead Costs percentage of Direct Labor Minimum cash balance (Assume you start with this) Cash collections in month of sale Cash collections in first month after sale Cash collections in second month after sale Cash Payments in month of purchase Cash Payments in the first month after purch Selling Costs per month (for cash budget) Administrative Costs per month (for cash budget) Annual Interest Rate for Letter of Credit Annual Interest Rate Earned on Excess Cash Sales Revenue for November Sales Revenue for December Material Purchases for November $ $ $ $ $ $ $ $ January February 25,500 26,500 $12 $12 $12 20% 5300 5600 10% 0.30 4 12 15 145% 10,000 70% 25% 5% 75% 25% 12,000 ### $ 12,000 13,000 ### $ 13,000 12% 4% 300,000 290,000 22,000 Material Purchases for December Depreciation Expense for the quarter (Operating Exp) Income Tax Rate $ $ 25,000 4,000 22% ny that manufactures green products. It is October 1 and time for creation of the budget for the next year. The budget will be cre es completing budgets for January, February, March and the first quarter in total for 2016. You seek out last year's data, recent c the year, as adjustments may be needed. You will need to create the following sub-budgets as part of the overall master budget. hese are determined as follows and have been approved by the CFO. These are summarized on the following page. me statement and statement of cash flows. These assumptions have been approved by the CFO. You will use them to create the m March April May 28,000 28,000 28,500 $12 $12 $12 5600 5700 5700 $ 12,000 $ 12,000 $ 12,000 $ 13,000 $ 13,000 $ 13,000 ear. The budget will be created in quarters using each month as a period of sales/production. out last year's data, recent costing information and follow up on important assumptions. the overall master budget. ollowing page. will use them to create the master budget for January, February, March and in total for the first quarter