create the cash budget and income statement. all the information i have are correct. For the cash budget make sure Q1 ending cash check figure is 1,110,000 and the total ending cash must be 11,090,000

Understanding Relationships, Master Budget, Comprehensive Review Objective 1, 2, 3 Optima Company is a high-technology organization that produces a mass-storage system. The design of Optima's system is unique and represents a breakthrough in the industry. The units Optima produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (20X1). The budget will detail each quarter's activity and the activity for the year in total. The master budget will be based on the following information: a. Fourth-quarter sales for 200 are 55,000 units. a. Fourth-quarter sales for 20X0 are 55,000 units. b. Unit sales by quarter (for 20X1) are projected as follows: First quarter Second quarter Third quarter 65,000 Fourth quarter The selling price is $400 per unit. All sales are credit sales. Optima collects 85% of all sales within the quarter in which they are realized; the other 15% is collected in the following quarter. There are no bad debts. c. There is no beginning inventory of finished goods. Optima is planning the following ending finished goods inventories for each quarter: c. There is no beginning inventory of finished goods. Optima is planning the following ending finished goods inventories for each quarter: FirstquarterSecondquarterThirdquarterFourthquarter13,000units15,000units20,000units10,000units d. Each mass-storage unit uses 5 hours of direct labor and three units of direct materials. Laborers are paid $10 per hour, and one unit of direct materials costs $80. e. There are 65,700 units of direct materials in e. There are 65,700 units of direct materials in beginning inventory as of January 1, 20X1. At the end of each quarter, Optima plans to have 30% of the direct materials needed for next quarter's unit sales. Optima will end the year with the same amount of direct materials found in this year's beginning inventory. f. Optima buys direct materials on account. Half of the purchases are paid for in the quarter of acquisition, and the remaining half are paid for in the following quarter. Wages and salaries are paid on the 15 th and 30 th of each month. g. Fixed overhead totals $1 million each quarter. Of this total, \$350,000 represents depreciation. All other fixed expenses are paid for in cash in the quarter incurred. The fixed overhead rate is computed by g. Fixed overhead totals $1 million each quarter. Of this total, \$350,000 represents depreciation. All other fixed expenses are paid for in cash in the quarter incurred. The fixed overhead rate is computed by dividing the year's total fixed overhead by the year's budgeted production in units. h. Variable overhead is budgeted at $6 per direct labor hour. All variable overhead expenses are paid for in the quarter incurred. i. Fixed selling and administrative expenses total $250,000 per quarter, including $50,000 depreciation. j. Variable selling and administrative expenses are budgeted at $10 per unit sold. All selling and administrative expenses are paid for in the quarter incurred. k. The balance sheet as of December 31,200, is as follows: 1. Optima will pay quarterly dividends of $300,000. At 1. Optima will pay quarterly dividends of $300,000. At the end of the fourth quarter, $2 million of equipment will be purchased. Required: Prepare a master budget for Optima Company for each quarter of 201 and for the year in total. The following component budgets must be included: 1. Sales budget 2. Production budget 3. Direct materials purchases budget 4. Direct labor budget 5. Overhead budget 6. Selling and administrative expenses budget 3. Direct materials purchases budget 4. Direct labor budget 5. Overhead budget 6. Selling and administrative expenses budget 7. Ending finished goods inventory budget 8. Cost of goods sold budget (Note: Assume that there is no change in work-in-process inventories.) 9. Cash budget 10. Pro forma income statement (using absorption costing) (Note: Ignore income taxes.) 11. Pro forma balance sheet (Note: Ignore income taxes.) Schedule 1 - Sales Budget Schedule 2 - Production Budget 19 20 21 22 Schedule 6: Selling and Administrative Expense Budget 9 Variable expenses 10 Fixed expenses 11 Total selling and administrative expenses 12 Schedule 7: Ending Finished Goods Inventory Budget 13 Schedule 7: Ending Finished Goods inventory Budget 14 15 Unit cost computation: NOTE: the costs are calculated per unit and then added for the total cost per unit. 15 Unit cost computation: NOTE: the costs are calculated per unit and then added for the total cost 16 Direct materials (number of units of direct material needed for each finished good * direct mater 17 Direct labor (number of hours of labor needed for each finished good * labor cost per hour) 18 Overhead: 19 Variable overhead (number of units of direct material per finished good * variable rate per unit) 20 Fixed overhead (Total fixed overhead / Finished goods production needs) 20 Fixed overhead (Total fixed overhea 22 Total finished goods ending inventory ( note: multiply total cost x Ending finished goods inventory units) 23 24 25 26 27 28 29 30 1 cost per unit. material cost p unit) ventory units) Schedule 8: Cost of Goods Sold Budget 5 Schedule 9: Cash Budget \begin{tabular}{llclcccc} & Q1 & Q2 & & Q3 & Q4 & Total \\ \hline$250,000 & $ & 1,110,000 & $ & & & & \end{tabular} 22,100,0003,300,000$25,650,000 Q21,110,000$Q3Q4Total 390,000 9,252,000 \begin{tabular}{rrrr} 300,000 & 300,000 & 1,200,000 \\ 2,000,000 & 2,000,000 \\ \hline & 300,000 & 3 \end{tabular} Create your own Optima Company Income Statement. Apply standard formatting including $, underscores and titles. Sales and Production Accessibility: Good to go 80F Sunny Understanding Relationships, Master Budget, Comprehensive Review Objective 1, 2, 3 Optima Company is a high-technology organization that produces a mass-storage system. The design of Optima's system is unique and represents a breakthrough in the industry. The units Optima produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (20X1). The budget will detail each quarter's activity and the activity for the year in total. The master budget will be based on the following information: a. Fourth-quarter sales for 200 are 55,000 units. a. Fourth-quarter sales for 20X0 are 55,000 units. b. Unit sales by quarter (for 20X1) are projected as follows: First quarter Second quarter Third quarter 65,000 Fourth quarter The selling price is $400 per unit. All sales are credit sales. Optima collects 85% of all sales within the quarter in which they are realized; the other 15% is collected in the following quarter. There are no bad debts. c. There is no beginning inventory of finished goods. Optima is planning the following ending finished goods inventories for each quarter: c. There is no beginning inventory of finished goods. Optima is planning the following ending finished goods inventories for each quarter: FirstquarterSecondquarterThirdquarterFourthquarter13,000units15,000units20,000units10,000units d. Each mass-storage unit uses 5 hours of direct labor and three units of direct materials. Laborers are paid $10 per hour, and one unit of direct materials costs $80. e. There are 65,700 units of direct materials in e. There are 65,700 units of direct materials in beginning inventory as of January 1, 20X1. At the end of each quarter, Optima plans to have 30% of the direct materials needed for next quarter's unit sales. Optima will end the year with the same amount of direct materials found in this year's beginning inventory. f. Optima buys direct materials on account. Half of the purchases are paid for in the quarter of acquisition, and the remaining half are paid for in the following quarter. Wages and salaries are paid on the 15 th and 30 th of each month. g. Fixed overhead totals $1 million each quarter. Of this total, \$350,000 represents depreciation. All other fixed expenses are paid for in cash in the quarter incurred. The fixed overhead rate is computed by g. Fixed overhead totals $1 million each quarter. Of this total, \$350,000 represents depreciation. All other fixed expenses are paid for in cash in the quarter incurred. The fixed overhead rate is computed by dividing the year's total fixed overhead by the year's budgeted production in units. h. Variable overhead is budgeted at $6 per direct labor hour. All variable overhead expenses are paid for in the quarter incurred. i. Fixed selling and administrative expenses total $250,000 per quarter, including $50,000 depreciation. j. Variable selling and administrative expenses are budgeted at $10 per unit sold. All selling and administrative expenses are paid for in the quarter incurred. k. The balance sheet as of December 31,200, is as follows: 1. Optima will pay quarterly dividends of $300,000. At 1. Optima will pay quarterly dividends of $300,000. At the end of the fourth quarter, $2 million of equipment will be purchased. Required: Prepare a master budget for Optima Company for each quarter of 201 and for the year in total. The following component budgets must be included: 1. Sales budget 2. Production budget 3. Direct materials purchases budget 4. Direct labor budget 5. Overhead budget 6. Selling and administrative expenses budget 3. Direct materials purchases budget 4. Direct labor budget 5. Overhead budget 6. Selling and administrative expenses budget 7. Ending finished goods inventory budget 8. Cost of goods sold budget (Note: Assume that there is no change in work-in-process inventories.) 9. Cash budget 10. Pro forma income statement (using absorption costing) (Note: Ignore income taxes.) 11. Pro forma balance sheet (Note: Ignore income taxes.) Schedule 1 - Sales Budget Schedule 2 - Production Budget 19 20 21 22 Schedule 6: Selling and Administrative Expense Budget 9 Variable expenses 10 Fixed expenses 11 Total selling and administrative expenses 12 Schedule 7: Ending Finished Goods Inventory Budget 13 Schedule 7: Ending Finished Goods inventory Budget 14 15 Unit cost computation: NOTE: the costs are calculated per unit and then added for the total cost per unit. 15 Unit cost computation: NOTE: the costs are calculated per unit and then added for the total cost 16 Direct materials (number of units of direct material needed for each finished good * direct mater 17 Direct labor (number of hours of labor needed for each finished good * labor cost per hour) 18 Overhead: 19 Variable overhead (number of units of direct material per finished good * variable rate per unit) 20 Fixed overhead (Total fixed overhead / Finished goods production needs) 20 Fixed overhead (Total fixed overhea 22 Total finished goods ending inventory ( note: multiply total cost x Ending finished goods inventory units) 23 24 25 26 27 28 29 30 1 cost per unit. material cost p unit) ventory units) Schedule 8: Cost of Goods Sold Budget 5 Schedule 9: Cash Budget \begin{tabular}{llclcccc} & Q1 & Q2 & & Q3 & Q4 & Total \\ \hline$250,000 & $ & 1,110,000 & $ & & & & \end{tabular} 22,100,0003,300,000$25,650,000 Q21,110,000$Q3Q4Total 390,000 9,252,000 \begin{tabular}{rrrr} 300,000 & 300,000 & 1,200,000 \\ 2,000,000 & 2,000,000 \\ \hline & 300,000 & 3 \end{tabular} Create your own Optima Company Income Statement. Apply standard formatting including $, underscores and titles. Sales and Production Accessibility: Good to go 80F Sunny