CASH BUDGET
		YEAR ENDED DECEMBER 31, 2018
		QTR 1	QTR 2	QTR 3	QTR 4		YR
Cash Receipts-operating:
Current quarter		5,569,200	8,353,800	9,746,100	4,176,900		27,846,000
Previous quarter		3,069,360	2,998,800	4,498,200	5,247,900		15,814,260
Total cash collections		8,638,560	11,352,600	14,244,300	9,424,800		43,660,260
Cash payments-operating:
Materials purchases		2,600,000	2,365,650	3,149,250	3,104,370		11,219,270
Labor		2,347,920	3,359,880	3,635,280	1,751,544		11,094,624
Variable overhead		1,565,280	2,239,920	2,423,520	1,167,696		7,396,416
Variable sales commissions		187,425	299,880	449,820	524,790		1,461,915
Fixed overhead		524,000	524,000	524,000	524,000		2,096,000
Fixed selling		850,000	850,000	850,000	850,000		3,400,000
Fixed admin		980,000	980,000	980,000	980,000		3,920,000
Total operating payments		9,054,625	10,619,330	12,011,870	8,902,400		40,588,225
Total cash provided/
used by operations		(416,065)	733,270	2,232,430	522,400		3,072,035
Other payments/receipts:
Capital expenditure		-	-	(1,950,000)	-		(1,950,000)
Dividends		(250,000)	(250,000)	(250,000)	(250,000)		(1,000,000)
Note payment (p&I)		-	260,000	-	260,000		520,000
Total cash provided/used		(666,065)	743,270	32,430	532,400		642,035
Add: beginning cash balance		1,625,000	958,935	1,702,205	1,734,635		1,625,000
Ending cash balance		958,935	1,702,205	1,734,635	2,267,035		2,267,035

2017 SALES:	170000
2018 SALES	204000
2019 SALES	244800
SALES PRICE:	$ 210
SALES BUDGET
		QTR1	QTR 2	QTR3	QTR4	YR
UNITS		40800	61200	71400	30600	204000
SALES PRICE		210	210	210	210	210
Budgeted revenue		8568000	12852000	14994000	6426000	42840000

PRODUCTION BUDGET								Q1-2019	Q2-2019
Budgeted sales		40800	61200	71400	30600	204000		48960	73440
+EI required	10%	6120	7140	3060	4896	4896		7344
Total needs		46920	68340	74460	35496	208896		56304
-BI on hand		3440	6120	7140	3060	3440		4896
Total production required		43480	62220	67320	32436	205456		51408

Presented on the template provided is Crossleys projected balance sheet at 12/31/17. PREPARE A BUDGETED BALANCE SHEET AT 12/31/18 NEXT TO IT (This is the first part), THEN ANSWER THE FOLLOWING QUESTIONS IN THE SPACE BELOW YOUR BALANCE SHEETS (second part). Label your answers, but the amounts themselves should be calculated by formulas that is shown next to it:

			CROSSLEY COMPANY
			BALANCE SHEET
			AT DECEMBER 31
			2018		2017
ASSETS
Cash					1625000
Accounts receivable					3069360
Inventory
Raw materials				275000
Finished goods				481600	756600
Property, plant and equipment, net					2939555
Total Assets					8390515
LIABILITIES AND STOCKHOLDERS EQUITY
Accounts payable					2600000
Commissions payable					187425
Note payable					1500000
Common stock, no par					2450000
Retained earnings					1653090
Total Liabilities and Stockholders Equity					8390515

a. What is the budgeted return on investment (round your answer to the nearest one percent)?

b. If the company has established a minimum required rate of return of 22% for Crossley, what is budgeted residual income (round your answer to the nearest dollar)?

c. If the CEO of Crossley has set a target ROI of 28%, how many units would the company have to sell for the year (round your answer to the nearest whole unit)?