CROSSLEY COMPANY CASH BUDGET YEAR ENDED DECEMBER 31, 2018 QTR 1 QTR 2 QTR 3 QTR 4 YR Cash Receipts operating Current quarter 5,569,200 8,353,800 9,746,100 4,176,900 27,846,000 Previous quarter 3,069,360 2,998,800 4,498,200 5,247,900 15,814,260 Total cash collections 8,638,560 11,352,600 14,244,300 9,424,800 43,660,260 Cash payments operating Materials purchases 2,600,000 2,365,650 3,149,250 3,104,370 11,219,270 Labor 2,347,920 3,359,880 3,635,280 1,751,544 11,094,624 Variable overhead 1,565,280 2,239,920 2,423,520 1,167,696 7,396,416 Variable sales commissions 187,425 299,880 449,820 524,790 1,461,915 Fixed overhead 524,000 524,000 524,000 524,000 2,096,000 Fixed selling 850,000 850,000 850,000 850,000 3,400,000 Fixed admin 980,000 980,000 980,000 980,000 3,920,000 Total operating payments 9,054,625 10,619,330 12,011,870 8,902,400 40,588,225 Total cash provided used by operations (416,065) 733,270 2,232,430 522,400 3,072,035 Other payments receipts Capital expenditure (1,950,000) (1,950,000) Dividends (250,000) (250,000) (250,000) (250,000) (1,000,000) Note payment (p I) 260,000 260,000 520,000 Total cash provided used (666,065) 743,270 32,430 532,400 642,035 Add beginning cash balance 1,625,000 958,935 1,702,205 1,734,635 1,625,000 Ending cash balance 958,935 1,702,205 1,734,635 2,267,035 2,267,035 CROSSLEY COMPANY BALANCE SHEET AT DECEMBER 31 2018 2017 ASSETS Cash 1625000 Accounts receivable 3069360 Inventory Raw materials 275000 Finished goods 481600 756600 Property, plant and equipment, net 2939555 Total Assets 8390515 LIABILITIES AND STOCKHOLDERS EQUITY Accounts payable 2600000 Commissions payable 187425 Note payable 1500000 Common stock, no par 2450000 Retained earnings 1653090 Total Liabilities and Stockholders Equity 8390515 Presented is Crossleys projected balance sheet at 12 31 17 Prepare a budgeted balance sheet at 12 31 18 next to it, then answer the following questions in the space below your balance sheets Label your answers, but the amounts themselves should be calculated by formulas that include cell references What is the budgeted return on investment (round your answer to the nearest one percent) If the company has established a minimum required rate of return of 22 for Crossley, what is budgeted residual income (round your answer to the nearest dollar) If the CEO of Crossley has set a target ROI of 28 , how many units would the company have to sell for the year (round your answer to the nearest whole unit)

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CROSSLEY COMPANY CASH BUDGET YEAR ENDED DECEMBER 31, 2018 QTR 1 QTR 2 QTR 3 QTR 4 YR Cash Receipts-operating: Current quarter 5,569,200 8,353,800 9,746,100

	CROSSLEY COMPANY
	CASH BUDGET
	YEAR ENDED DECEMBER 31, 2018

	QTR 1	QTR 2	QTR 3	QTR 4	YR
Cash Receipts-operating:
Current quarter	5,569,200	8,353,800	9,746,100	4,176,900	27,846,000
Previous quarter	3,069,360	2,998,800	4,498,200	5,247,900	15,814,260
Total cash collections	8,638,560	11,352,600	14,244,300	9,424,800	43,660,260

Cash payments-operating:
Materials purchases	2,600,000	2,365,650	3,149,250	3,104,370	11,219,270
Labor	2,347,920	3,359,880	3,635,280	1,751,544	11,094,624
Variable overhead	1,565,280	2,239,920	2,423,520	1,167,696	7,396,416
Variable sales commissions	187,425	299,880	449,820	524,790	1,461,915
Fixed overhead	524,000	524,000	524,000	524,000	2,096,000
Fixed selling	850,000	850,000	850,000	850,000	3,400,000
Fixed admin	980,000	980,000	980,000	980,000	3,920,000
Total operating payments	9,054,625	10,619,330	12,011,870	8,902,400	40,588,225
Total cash provided/
used by operations	(416,065)	733,270	2,232,430	522,400	3,072,035
Other payments/receipts:
Capital expenditure	-	-	(1,950,000)	-	(1,950,000)
Dividends	(250,000)	(250,000)	(250,000)	(250,000)	(1,000,000)
Note payment (p&I)	-	260,000	-	260,000	520,000
Total cash provided/used	(666,065)	743,270	32,430	532,400	642,035
Add: beginning cash balance	1,625,000	958,935	1,702,205	1,734,635	1,625,000
Ending cash balance	958,935	1,702,205	1,734,635	2,267,035	2,267,035

	CROSSLEY COMPANY
	BALANCE SHEET
	AT DECEMBER 31

	2018		2017
ASSETS

Cash			1625000
Accounts receivable			3069360
Inventory
Raw materials		275000
Finished goods		481600	756600
Property, plant and equipment, net			2939555
Total Assets			8390515

LIABILITIES AND STOCKHOLDERS EQUITY
Accounts payable			2600000
Commissions payable			187425
Note payable			1500000
Common stock, no par			2450000
Retained earnings			1653090
Total Liabilities and Stockholders Equity			8390515

Presented is Crossleys projected balance sheet at 12/31/17. Prepare a budgeted balance sheet at 12/31/18 next to it, then answer the following questions in the space below your balance sheets. Label your answers, but the amounts themselves should be calculated by formulas that include cell references:

What is the budgeted return on investment (round your answer to the nearest one percent)?

If the company has established a minimum required rate of return of 22% for Crossley, what is budgeted residual income (round your answer to the nearest dollar)?

If the CEO of Crossley has set a target ROI of 28%, how many units would the company have to sell for the year (round your answer to the nearest whole unit)?