Company Background Lucy's Boutique Jam company produces and distributes locally, small batch Raspberry and Blackberry Jams. You are provided with the following data to prepare the Financial Budget for the year ended 30 June 2023. Direct Manufacturing Costs Direct Materials used $185,000 Direct Manufacturing Labour $175,000 Direct Materials Purchased $155,000 Desired Ending Inventories Direct Materials $105,000 Finished goods $185,000 Manufacturing Overhead Costs Variable Costs Factory Depreciation $125,000 Factory Supervision $152,000 Factory Power costs $75,800 Factory Maintenance Costs $42,900 Non-Manufacturing Operating Costs Product Design $35,000 Marketing $75,000 Distribution $85,000 Planned Data - Financial Minimum quarterly cash balance $200,000 Interest rate per annum 8% Income Tax 28% The business wants to minimise the amount of borrowing and they also have a special arrangement with the bank to pay interest at the time of paying principal. Accounts receivable cash collections 0 80% of all sales made in the quarter are collected in the same quarter a 20% are collected in the following quarter Sales Budget For Year Ending 30 June 2023 Quarters l l 1 l 2 l 3 l 4 l Total Budgeted Revenue $353,625 $363,950 $359,350 $357,000 $1,433,925 Lucy's Boutique .lam Company Balance Sheet As at 30 June 2022 Asset Current Assets Cash $150,000 Accounts Receivable $75,900 Direct Material Inventory $95,800 Finished Goods Inventory $158,500 Total Current Assets $480,200 Non-Current Assets Property, Plant and Equipment Land $493,100 Building and Equipment $350,000 Less: Accumulated Depreciation ($125,000) $225,000 Total Non-Current Assets $718,100 Total Assets $1,198,300 Liabilities and Shareholder Equity Current Liabilities Accounts Payable $150,600 Income taxes payable $85,800 Total Current Liabilities $236,400 Shareholder Equity Ordinary Shares 25,000 Shares outstanding $250,000 Retained Earnings $711,900 Total Shareholder Equity $961,900 Total Liabilities 8: Shareholder Equity $1,198,300 Budgeted Disbursements For Year Ending 30 June 2023 Quarters 1 2 3 4 Total Disbursements Direct Materials $75,800 $76,000 $72,900 $69,500 $294,200 Payroll $80,975 $83,775 $81,975 $80,275 $327,000 Manufacturing Overhead Costs $32,400 $35,785 $35,892 $32,800 $136,877 Non-Manufa cturing Costs $48,500 $48,550 $42,301 $45, 123 $184,474 Machinery Purchase $155,000 $155,000 Income Taxes $85,800 $17,500 $16,580 $17,900 $137,780 $478,475 $261,610 $249,648 $245,598 $1,235,331