Can you help me with this master budget thank you
WAIS CORPORATION manufactures and sells only one consumer good, product HOPE. As of December 31,2015, the Statement of Financial Position of the firm shows the following: Current Assets Cash Accounts Receivable (net) P111,216.80 Inventories 327,283.20 Other Current Assets 249,000.00 12,500.00 P700,000.00 Noncurrent Assets Property, Plant and Equipment Accumulated Depreciation P4,000,000.00 Total Assets (800,000.00) 3,200,000.00 P3,900,000.00 Current liabilities Accounts Payable P 21,582.40 Income tax payable 105,000.00 Property tax payable 10,000.00 Bonds Payable (10%) 400,000.00 P536,582.40 Noncurrent Liabilities Bonds Payable (10%) 800,000.00 Total Liabilities P1,336,582.40 Shareholders' Equity Ordinary Share Capital (P100 par) P2,000,000 Accumulated Profits 563,417.60 2,563,417.60 Total Equities P3,900,000.00 During the last month of 2015 to the early weeks of January, 2016, the management has been gathering data for preparing the 2016 budget. Data gathered by the controller are as follows: a. Marketing department projected to sell 12, 500 units in the first quarter and expects to increase it by 10% per quarter for the next two years. The sales price is expected to be at P120/unit.b. The company established some policies to guide operations throughout the year, For the production department, enough goods must be produced such that 20% of the goods expected to be sold in the next quarter will be on hand at end of each current quarter. Direct materials at the end of each quarter must be 30% of the direct materials requirement for the next quarter. Other data for production are as follows: Direct materials / unit 400g @ P5 per 100g Direct labor / unit 3 hrs @ P10 per hr Indirect labor P2 / unit Indirect materials P5/ unit Utilities P3 / unit + P55, 000 per quarter Property taxes P5, 000 per quarter Depreciation (50% building, 50% on P50, 000 per quarter equipments) c. To attract customers, the company will be selling on normal credit terms, as usual. The company projected that 75 % of sales will be collected during the quarter of sale, and the remaining will be collected in the following quarter, with 1% of total sales estimated as uncollectible. d. Projected operating costs to be incurred per quarter are as follows: Administrative Salaries P50, 000 Office supplies 2, 500 Depreciation - office equipments 10, 000 Sales salaries 40, 000 Advertising 30, 000 Sales commission 3% of sales price Store supplies Depreciation - store equipments 2, 000 Depreciation - building (60% office; 40% sales) 15, 000 Property taxes 25, 000 5, 000 e. Expenses are paid in cash except for direct materials of which 10% is paid the next quarter after it was purchased and property taxes which are paid in the quarter after the property taxes are recognized. The company's policy is to maintain a minimum cash balance of P50, 000 at all times, for any unforeseen cash requirements or any adjustments to be made. f. Finished Goods of the last quarter of 2015 has a cost per unit of P69. g. Other assets were all expensed in the first quarter of 2016. h. Current portion of bonds payable matures every Dec. 31. The firm will declare P10/sh dividends on Dec.1 payable on Jan. 31, 2017. i. The firm is subject to 30% income tax which will be paid in the first week following each quarter of operations. REQUIRED: Prepare the Master Budget of WAIS Corporation for 2016 in a quarterly basis
