Computer Accessories assembles a computer networking device from kits of imported components.
You have been asked to develop a quarterly and annual operating budget and a pro-forma income statements for the year ending December 31, 20XX.
You have obtained the following information:
I have a template set up on the Part1BudgetSolution worksheet that you should use to complete the required budgets.
You need to use cell references in the development of your budgets.
You must use this worksheet to reference the data that is being inputted onto the budgets on the budget worksheet.
If you type in any numbers in the solution, I will take off .5 pts for each cell that has a number typed in the cell.
You should use this worksheet as your data field and only use cell references and formulas in your budgets.
Your grade will be based on accuracy of your solution and correct usage of excel. The budget worksheet has formatted budgets for you to complete.
The beauty behind excel is that managers can perform what-if analysis just by changing the data, so you do not need to retype the budgets if you
have used cell references and formulas throughout.
Beginning-of-year balances
	Cash			$10,000
	Accounts receivables (previous fourth quarter's sales)	$61,200
	Raw materials			653	Kits
	Finished Goods			510	Units
	Accounts payable(purchases made in previous fourth quarter)	$33,255
Desired end-of-year inventory balances
	Raw materials			500	kits
	Finished goods			270	units
Desired end-of-quarter balances
	Raw materials as a portions of the following quarter's production			18%
	Finished goods as a portion of the following quarter's sales			14%
Manufacturing costs other than raw materials are paid in quarter incurred unless it is an noncash expense
	Variable Standard cost per unit	Unit of input		Unit price per input	Total cost per unit
	Raw materials	1	kit	$44	$44.00
	Direct labor hours at rate	0.6	hour	$18	$10.80
	Variable overhead/labor hour	0.6	hour	$4	$2.40
	Total Variable Standard cost per unit				$57.20
	Fixed overhead cost per quarter used cash			$18,000
	Manufacturing Depreciation per quarter			$2,000
Selling and administrative costs are paid in quarter incurred unless it is an noncash expense
	Variable cost per unit			$2
	Fixed selling and administrative cost per quarter used cash			$23,100
	Selling and administrative depreciation per quarter			$2,200
Portion of sales collected
	Collected in the quarter of sale			67%
	Subsequent quarter			32%
	Bad debts			1%
Portion of purchases paid
	Paid in the quarter of purchases			66%
	Subsequent quarter			34%
Unit selling price			$120
Sales forecast
	Quarter	First	Second	Third	Fourth
	Unit sales	3,000	2,500	2,700	3,200

Required: Prepare and answer the following. Make sure you use cell referencing

Hint: Please note that the annual total, does not necessarily mean that you should add across, for example, review exhibit 22.13 since desired ending inventory

is the inventory at the end of the period and beginning inventory is the beginning inventory at the beginning of the period.

1. A sales budget for each quarter and the year.

2. A production budget for finished goods of units each quarter and the year.

3. A purchases budget for raw material of kits each quarter and the year.

4. A manufacturing cost budget for each quarter and the year.

5. A selling and administrative expense budget for each quarter and the year.

6. A cash budget for each quarter and the year.

7. A pro-forma contribution income statement for each quarter and the year.

Hint: You will need to compute Variable Cost of Goods Sold for each quarter, which is unit sold times total Variable Standard cost per unit.

8. Using your information from #7, compute the annual contribution margin, the breakeven in dollars for the year, and the margin of safety in dollars for the year.

Make sure you are using cell references. Comment on your results.

9. What if the company is able to lower the fixed Manufacturing overhead costs that uses cash per quarter from $18,000 to $14,000. Which budgets will change and what will be the new annual income?

You should only have to change the fixed manufacturing overhead costs that uses cash on this worksheet and all the appropriate budgets will change on the solution worksheet if you have

set up your cell references correctly. Please make sure you return the Fixed manufacturing overhead costs that uses cash back to the original number before you submit your solution.

I need help with #6, #7 , #8 and # 9. Can you please show the work?