Data table Gavin Tire Company Balance Sheet December 31, 2018 Assets Current Assets Cash $ 74,000 Accounts Receivable 25,000 Raw Materials Inventory 1,300 2,900 $ 103,200 Finished Goods Inventory Total Current Assets Property. Plant, and Equipment: Equipment Less: Accumulated Depreciation 168,000 (83,000) 85,000 $ 188,200 Total Assets to Print Done TISTE QUOUS TE LUTY $ 103,200 Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation 168,000 (83,000) 85,000 $ 188,200 Total Assets Liabilities Current Liabilities: Accounts Payable $ 7,500 Stockholders' Equity Common Stock, no par $ 125,000 55,700 Retained Earnings Total Stockholders' Equity 180,700 Total Liabilities and Stockholders' Equity $ 188,200 Print Done (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) Budgeted sales are 1,600 tires for the first quarter and expected to increase by 200 tires per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on a account. b. Finished Goods Inventory on December 31, 2018 consists of 100 tires at $29 each. Desired ending Finished Goods Inventory is 40% of the next quarter's sales, first quarter sales for c. 2020 are expected be 2.400 tires FIFO inventory costing method is used. Raw Materials Inventory on December 31, 2018, consists of 200 pounds of rubber compound used d. to manufacture the tires. Direct materials requirements are 2 pounds of a rubber compound per tire. The cost of the e. compound is $6.50 per pound Desired ending Raw Materials Inventory is 50% of the next quarter's direct materials needed for production desired ending inventory for December 31, 2019 is 200 pounds, indirect materials are insignificant and not considered for budgeting purposes. 9. Each tire requires 0 40 hours of direct labor direct labor costs average $14 per hour h. Variable manufacturing overhead is $3 per tire, Fixed manufacturing overhead includes $1.500 per quarter in depreciation and $29.379 per quarter for other costs, such as utilities, insurance, and property taxes Fixed selling and administrative expenses include $10.000 per ouarter for salaries $5,100 per i Print Done Fixed manufacturing overhead includes $1.500 per quarter in depreciation and $29,379 per quarter i for other costs, such as utilities, insurance, and property taxes. Fixed selling and administrative expenses include $10,000 per quarter for salaries, $5,100 per i. quarter for rent $1,500 per quarter for insurance, and $500 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of sales. Capital expenditures include $40,000 for new manufacturing equipment to be purchased and paid L in the first quarter. Cash receipts for sales on account are 85% in the quarter of the sale and 15% in the quarter following the sale: December 31, 2018, Accounts Receivable is received in the first quarter of 2019: m uncollectible accounts are considered insignificant and not considered for budgeting purposes. Direct materials purchases are paid 90% in the quarter purchased and 10% in the following quarter n. December 31, 2018 Accounts Payable is paid in the first quarter of 2019 Direct labor, manufacturing overhead and selling and administrative costs are paid in the quarter o incurred Income tax expense is projected at $3,000 per quarter and is paid in the quarter incurred. Gavin desires to maintain a minimum cash balance of $70,000 and borrows from the local bank as needed in increments of S1,000 at the beginning of the quarter principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1 000, interest is 12% per year and paid at the beginning of the quarter based on the amount outstanding from the a previous quarter P Print Done The Gawn Tre Company manufactures racing tres for bicyden Gavin ses besos each Garin planning for the next year by developing a master budget by gawiters Gave's balance sheet to December 31, 2018 follow Click the icon to view the balance Die data for the Company Cick en te view Rused the Requirement 1. Prepare Gavily operating budget and the budget for 2019 by quanta Red de and budgets includes budget, diction budget de ses promoting overhead budget conto grado sud budget and administrative expense de scheidenheid om hul Malovat o anaocareted in de labor hos Round all calculations to do Begin by preparing the sales budget Gaviive Com Sales B For the Year End December 21, 2017 First Second Thi Fourth Gutt Que Quare Total 1600 1000 2000 220000 30 00 12010 144.000 001000 Tota la 60.000 Pregar production budget Rouwthe sales tout you prepared above Gevo Time Umt 3000 Next hp Requirement 1. Prepare Gavin's operating budget and cash budget for 2019 by quarter. Required schedul overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash labor hours. Round all calculations to the nearest dollar. Begin by preparing the sales budget. Gavin Tire Company Sales Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be sold 1600 1800 2000 2200 7600 Sales price per unit 80 80 80 80 80 Total sales 128,000 144,000 160,000 176,000 608,000 Prepare the production budget. Review the sales budget you prepared above, Gavin Tire Company Fourth Quarter Total 2200 7600 Prepare the production budget. Review the sales budget you prepared above. Gavin Tire Company Production Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Budgeted tires to be sold 1600 1800 2000 Plus: Desired tires in ending inventory Total tires needed Less Tires in beginning inventory Budgeted tires to be produced Prepare the direct materials budget. Review the production budget you prepared above. Gavin Tire Coman Cho Prepare the direct materials budget. Review the production budget you prepared above Gavin Tire Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Third Fourth Quarter Quarter Total Budgeted tires to be produced Direct materials per tire Direct materials needed for production Plus Desired direct materials in ending Inventory Total direct materials needed Less Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per pound Click the icon to view the balance sheet.) Read the requirements Forne Torch wecember , 2013 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be produced Direct materials per tire Direct materials needed for production Plus Desired direct materials in ending inventory Total direct materials needed Loss: Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per pound Budgeted cost of direct materials Propare the direct labor budget (Enter any hours per unit amounts to two decimal places, XXXand round all other amounts to the nearest whole numbet.) Review the production budget you prepared above Gavin Tire Company (Click the icon to view the balance sheet) www Read the requirements Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, XXX, and round all other amounts to the nearest whole number) Review the production budget you prepared above. Gavin Tire Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be produced Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead, FOH-food manufacturing overhead) Review the production budget you prepared above Review the direct labor budget you prepared above Fourth Quarter Total Gavin Tire Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Budgeted tires to be produced VOH cost per tire Budgeted VOH Budgoted FOH Depreciation Utilities, insurance property taxes Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Rudinal manufacturinn nuachat nate (Click the icon to view the balance sheet) Dick icon to view the other data) Read the Budgeted tires to be produced VOH cost per tiro Budgeted VOH Budgeted FOH Depreciation Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Before preparing the cost of goods sold budget, calculate the projected manufacturing cost par tire for 2019 (Round all amounts to the nearest cent) Direct materials cost per tire UR Before preparing the cost of goods sold budget calculate the projected manufacturing cost per tire for 2019 (Round all amounts to the nearest cont) Direct materials cost per tire Direct labor cost per tire Manufacturing overhead cost per tire Direct labor cost per tire Direct materials cost per tire Manufacturing overhead cost per tire Selling price per tire Company Sold Budget December 31, 2019 Second Third Quarter Quarter Fourth Quarter Total Quarter Beginning inventory read the requirements Total Gavin Tire Company Cost of Goods Sold Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Beginning inventory Tires produced and sold in 2019 Total budgeted cost of goods sold Prepare the selling and administrative expense budget Review the sales budget you prepared above. Gavin Tire Company Selling and Administrative Expense Budget For the Year Ended December 31, 2019 Second Third First Fourth Total nu follows bi bugel by quarters. Gaviry's balance sheet for December 31, 2018 company (Click the icon to view the other data) (Click the icon to view the balance sheet) Read the requirements Review the sales budget you prepared above. Gavin Tire Company Selling and Administrative Expense Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Salaries Expense Rent Expense Insurance Expense Depreciation Expense Supplies Expense Total budgeted selling and administrative expense Prepare the cash receipts budget. (If an input field is not used in the table leave the input field empty do not enter a zero) Review the sales budget you prepared above Cash Receipts from Customers (Click the icon to view the balance sheet) 1 (Click the icon to view the other data Read the requirements Cash Receipts from Customers First Second Fourth Third Quarter Quarter Quarter Quarter Total Total sales Second Third First Quarter Fourth Quarter Quarter Quarter Total Cash Receipts from Customers: Accounts Receivable balance, December 31, 2018 1st Qtr-Cash sales 1st Qtr. ---Credit sales, collection of Qtr 1 sales in Qu. 1 1st Qtr --Credit sales, collection of Qtr 1 sales in Qtr 2 2nd Qur-Cash sales 2nd Qtr-Credit sales, collection of Qtr 2 sales in Qtr 2 2nd Qtr-Credit sales, collection of Qur 2 sales in Qtr 3 3rd Qtr-Cash sales 3rd Qtr-Credit sales, collection of Qur3 sales in Qtr 3 31, 2010, (Click the icon to view the other dat (Click the icon to view the balance sheet.) Read the requirements zna 2nd Qur-Credit sales collection of or 2 salen in Otr. 2 2nd Qur Crodit salat, collection of tr 2 sales in Oir 3 3rd at - Cash nalos 3rd Otr Credit sales, collection of Ou 3 sales in O3 3rd On --Credit salos, collection of Otr 3 sales in Qur. 4 4th QtrCash sales 4th Qtr --Credit sales, collection of tr 4 sales in Qtr. 4 Total cash receipts from customers Accounts Receivable balance, December 31, 2019: 4th Qtr-Credit sales, collection of otr. 4 sales in Qtr. 1 of 2020 Prepare the cash payments budget. (Round all amounts you entered into the budget to the nearest whole dollar. If an input field is not used in the table leave Review the direct materials budget you prepared above Review the direct labor budget vou prepared above. Keview the manufacturing overhead budget you prepared above Review the selling and administrative expense budget you prepared above Cash Payments First Quarter Second Fourth Third Quarter Quarter Quarter Total Total direct materials purchases First Third Fourth Second Quarter Quarter Quarter Quarter Total Cash Payments Direct Materials: Accounts Payable balance, December 31, 2018 1st Qtr-tr. 1 direct material purchases paid in Qtr 1 1st Qtr-tr. 1 direct material purchases paid in tr. 2 2nd Qtr. -Qtr. 2 direct material purchases paid in Qtr. 2 2nd Qtr-Qtr 2 direct material purchases paid in Qtr 3 3rd Qtr.-Otr. 3 direct material purchases paid in Qtr. 3 1: Lack the icon to view the balance sheet.) Read the resuirements 2nd Qur-atr 2 direct material purchases paid in Q3 3rd Qui Qtr 3 direct material purchases paid in Qtr: 3 3rd Qur-Qtr 3 direct material purchases paid in Qtr 4 4th Otr-Qur. 4 direct material purchases paid in Qtr. 4 Total payments for direct materials Direct Labor: Total payments for direct labor Manufacturing Overhead: Total payments for manufacturing overhead Selling and Administrative Expenses: ick the icon to view the balance sheet) Read the Selling and Administrative Expenses: Total payments for Selling and Admin, expenses Income Taxes: Total payments for income taxes Capital Expenditures: Total payments for capital expenditures Total cash payments (before interest) Ante Ducha halos naramer 7 2010. Read the rements Total cash payments (before interest) Accounts Payable balance, December 31, 2019: Ath tr. -Qt direct material purchases paid in Otr. 1 of 2020 Prepare the cash budget (Complete all input fields Enter a "o" for any zero balances. Round all amounts entered into the cash budget to the nearest whole dollar. Enter cash repayment on financing with a minus sign or parentheses) Review the cash receipts budget you prepared above Review the cash payments budget you prepared above. Gavin Tire Company Cash Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Beginning cash balance hp Gavin Tire Company Cash Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total Beginning cash balance Cash receipts Cash available Cash payments Capital expenditures Purchases of direct materials Direct labor Manufacturing overhead Selling and administrative expenses Income taxes Other data for Gavin The Company (Click the icon to view the other data) Read the res The Gavin Tire Company manufactures racing tires for bicycles Gavin sos tires for 500 each Gavin is planning for the next year by developing a master budget by quarters. Gavin's balance sheet for December 31, 2018, follows Click the icon to view the balance sheet) Manufacturing overhead Selling and administrative expenses Income taxes Interest expense Total cash payments Ending cash balance before financing Minimum cash balance desired Projected cash excess (de ciency) Financing Borrowing Principal repayments Total effects of financing Ending cash balance Requirement 2. Prepare Gavin's annual financial budget for 2019, including budgeted income statement, budgeted balance sheet, and budgeted statement of cash flows Bogin with the budgeted income statement (Complete all input fields. Enter a "0" for any zero balances) follows: (Click the icon to view the balance sheet.) Review the sales budget you prepared above. Review the cost of goods sold budget you prepared above. Review the selling and administrative expense budget you prepared above. Review the cash budget you prepared above. Gavin Tire Company Budgeted Income Statement For the Year Ended December 31, 2019 Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Expenses Operating Income Interest Expense Income before Income Taxes Income Tax Expense Net Income The Gavin Tire Company for the next year by developing a master budget by quarters. Gavin's balance sheet for De follows: (Click the icon to view the balance sheet.) Net Income Prepare the budgeted balance sheet (Round to the nearest whole dollar) Review the production budget you prepared above. Review the direct materials budget you prepared above. Review the selling and administrative expense budget you prepared above. Review the cash receipts budget you prepared above. Review the cash payments budget you prepared above. Review the cash budget you prepared above. Review the income statement you prepared above. Gavin Tire Company Budgeted Balance Sheet December 31, 2019 Assets Current Assets Cash Accounts Receivable MI Raw Materials Inventory (Click the icon to view the balance sheet.) Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Common Stock, no par for the next year by developing a master budget by quarters. Gavin's balance sheet follows: (Click the icon to view the balance sheet.) Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity