Complete the Cash Budget Schedule given the following information:

WGT Balance Sheet

01/01/2016

Cash $ 22,000

Accounts Receivable 12,000

Inventory Raw Materials 350

FG Inventory 4,950

Land 8,000

Buildings and Equip 70,000

Accum Depr (29,200)

Total Assets $ 88,100

Accounts Payable $ 2,580

Capital Stock 17,500

RE 68,020

Total Liab and Stockholders $ 88,100

Use the following to complete the team project:

1. The marketing department projects the following sales levels:

Quarter 1, 2016 8,700 Gnomes

Quarter 2, 2016 9,800 Gnomes

Quarter 3, 2016 4,200 Gnomes

Quarter 4, 2016 3,800 Gnomes

Quarter 1, 2017 4,600 Gnomes

Quarter 2, 2017 2,800 Gnomes

The statues are expected to sell for $40.00 EACH

1. WGT sell all merchandise on credit. Historically, WGT receives 60% of each

quarter's sales during the quarter and 40% in the next quarter.

2. WGT plans to stock the ending inventory of finished goods to equal 65% of the next quarter's sales.

Finished Goods inventory at 01/01/2016 is 300 statues at a cost of $16.5 per unit.

3. The statues are made with both cement and plaster. The statues each require 7.00

pounds of cement at a cost of $0.70 per pound.

In addition, the statues require 7 pounds of plaster at $0.55 per pound. At

12/31/2015 WGT had 500 pounds of cement on hand and no plaster

on hand. WGT plans to keep 65% of the cement and 65% of the plaster required

required for next quarter's production in inventory at the end of each quarter.

WGT pays for purchases as follows: 70% in the quarter purchased and 30% in the quarter following the purchase.

4. Each of the statue requires 0.7 hrs of direct labor at $6.50 per hour. Employees are paid

on the last day of each month for that month's work. Other costs are paid in the quarter unless otherwise noted.

5. Variable overhead is estimated at $4.00 per direct labor hour. Fixed overhead costs are $40,000

per year. Fixed overhead includes depreciation of $10,000 per year.

6. Variable selling and administrative costs are $5.00 per unit. Fixed selling and administrative costs are

$30,000 per year. (This includes $15,000 of depreciation per year)

7. WGT makes quarterly income tax payments of $8,000. The coprorate income tax rate is 30% of net before taxes (consider underpayments on your balance sheet).

8. WGT pays quarterly dividends of $5,000 .

9. WGT will purchase additional equipment using cash on the following schedule

(depreciation is already included above):

Quarter 1 $ 15,000

Quarter 2 $ 5,000

Quarter 3 $ -

Quarter 4 $ -

10. WGT has to maintain a minimum cash balance of $10,000. All borrowings are made at the end of the

quarter and paid back at the end of the first quarter where there is a cash surplus to make the debt payments.

All borrowings and repayments are made in $1,000 increments. Interest is paid at the time of

repayment and is calculated at 3.50% per year (no Compounding).

Schedule 11: Cash Budget	Q1	Q2	Q3	Q4	Total
Cash Sources:
Beginning Balance: Cash
Cash Receipts
Cash available for use
Cash Uses:
Disbursements for purchases
Direct Labor
Overhead payments
Sales & General Administrative Payments
Taxes Paid
Dividends paid
Equipment purchases
Total Cash Disbursements
Cash Balance - pre debt
Loans (repayments)
Interest Payments on Loans
Net Borrowing Impact on Cash
Ending Balance: Cash