Chu The Gilder Tire Company Balance Sheet December 31, 2018 Assets Current Assets: Cash 53,000 40,000 3,200 7,000 $ 103,200 Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Liabilities 150,000 (77,000) 73,000 $ 176,200 Current Liabilities: Accounts Payable $ 7.500 Stockholders' Equity $ Common Stock, no par 100,000 68.700 Retained Eamings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 168,700 $ 176,200 More Info yal er's get, di ated ba (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) ash Budgeted sales are 1,200 tires for the first quarter and expected to increase by 200 tires per quarter. Cash ense a. sales are expected to be 40% of total sales, with the remaining 60% of sales on account. b. Finished Goods Inventory on December 31, 2018 consists of 200 tires at $35 each. Desired ending Finished Goods Inventory is 20% of the next quarter's sales; first quarter sales for 2020 are C. expected be 2,000 tires. FIFO inventory costing method is used. mpa Raw Materials Inventory on December 31, 2018, consists of 400 pounds of rubber compound used to get d. manufacture the tires. Direct materials requirements are 2 pounds of a rubber compound per tire. The cost of the compound is cem e. $8.00 per pound. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production, desired ending inventory for December 31, 2019 is 400 pounds, indirect materials are f. insignificant and not considered for budgeting purposes. 400 g. Each tire requires 0.40 hours of direct labor, direct labor costs average $10 per hour. 65 h. Variable manufacturing overhead is $3 per tire. 000 Fixed manufacturing overhead includes $4,000 per quarter in depreciation and $13,050 per quarter for 1. other costs, such as utilities, insurance, and property taxes. Fixed selling and administrative expenses include $13,000 per quarter for salaries: $3,600 per quarter for rent, $1,950 per quarter for insurance; and $1,000 per quarter for depreciation. k Vanable selling and administrative expenses include supplies at 1% of sales. ilder Tire Capital expenditures include $55,000 for new manufacturing equipment to be purchased and paid in the 1. first quarter er Input field Her's gel ense atec get Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019 is 400 pounds; indirect materials are ash f. insignificant and not considered for budgeting purposes. g. Each tire requires 0.40 hours of direct labor, direct labor costs average $10 per hour. h. Variable manufacturing overhead is $3 per tire. Fixed manufacturing overhead includes $4,000 per quarter in depreciation and $13,050 per quarter for i. Other costs, such as utilities, insurance, and property taxes. mpal Fixed selling and administrative expenses include $13,000 per quarter for salaries: $3,600 per quarter for 1. rent: $1,950 per quarter for insurance; and $1,000 per quarter for depreciation. cemi k. Variable selling and administrative expenses include supplies at 1% of sales. Capital expenditures include $55,000 for new manufacturing equipment, to be purchased and paid in the 1. first quarter. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the 00 sale; December 31, 2018, Accounts Receivable is received in the first quarter of 2019; uncollectible m. accounts are considered insignificant and not considered for budgeting purposes. 65 Direct materials purchases are paid 50% in the quarter purchased and 50% in the following quarter, 000 n. December 31, 2018, Accounts Payable is paid in the first quarter of 2019. 0. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. p. Income tax expense is projected at $4,500 per quarter and is paid in the quarter incurred. Gilder desires to maintain a minimum cash balance of $50,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of Ber Tire the quarter when excess funds are available and in increments of $1,000; interest is 12% per year and paid 9. at the beginning of the quarter based on the amount outstanding from the previous quarter. hput field Print Done (Click the icon to view the other data.) Read the requirements. for 2019 by quarter. Required schedules and budgets include: sales budget, production budget, direct materials bu posts are alloc Requirements X scher 2019 1. Prepare Gilder's operating budget and cash budget for 2019 by quarter. Required schedules and budgets include: sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budget. Manufacturing overhead costs are allocated based on direct labor hours. Round all calculations to the nearest dollar. 2. Prepare Gilder's annual financial budget for 2019, including budgeted income statement and budgeted balance sheet. er 600 65 -,000 Print Done bany then click Check Answer The Gilder Tire Company manufactures racing tires for bicycles. Gilder sells tires for $65 each. Gilder is planning for the next year by developing a master budget by quarters. Gilder's balance sheet for December 31, 2018, follows: Click the icon to view the balance sheet.) Other (c Read the Requirement 1. Prepare Gilder's operating budget and cash budget for 2019 by quarter. Required schedules and budgets include: s cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and ca the nearest dollar. Begin by preparing the sales budget. Gilder Tire Company Sales Budget For the Year Ended December 31, 2019 First Second Third Total Fourth Quarter Quarter Quarter Quarter Budgeted tires to be sold Sales price per unit 1.200 65 1,400 65 $ $ 1,600 65 $ $ 1,800 65 6,000 65 $ Total sales 78,000 $ 91,000 $ 104,000 $ 117,000 $ 390,000 Prepare the production budget Beyin that inte bort You.maced above. Gilder Tire Company Choose from any lt or enter any number in the input fields and then click Check Answer 17 Dus remaining Clear All Question 1, P22-41A (similar to) The Gilder Tire Company manufactures racing tires for bicycles. Gilder sells tires for $65 each. Gilder is planning for the next year by developing a master budget by quarters. Gilder's balance sheet for December 31, 2018, follows: Click the icon to view the balance sheet.) Other data for Gilder Tire Company (Click the icon to view the other Read the requiremeno 1,600 Budgeted tires to be sold Sales price per unit 1.200 65 S 1,400 65 $ 1,800 65 $ 6,000 65 65 $ Total sales 78,000 $ 91,000 $ 104,000 $ 117.000 $390,000 Prepare the production budget. Review the sales budget you prepared above, Gilder Tire Company Production Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Budgeted tires to be sold 1200 1400 1600 Plus: Desired tires in ending inventory Totni tres needed Los Tires in beginning inventory Budged tires to be produced Fourth Quarter Total 1800 6000 Choose trom any list or enter any number in the input fields and then click Check Answer 17 parts ronning Clear All