due by 1130 pm

Homework: Chapter 7 Homework Assignment Score: 0 of 1 pt 1 of 1 (0 complete) PM7-41A (similar to) The Giseppe Tire Company manufactures racing tires for bicycles. Giseppe sells tires for 570 each Giseppe is planning for the next year by developing a master budget by quarters Giseppe's balance sheet for December 31, 2024 follows (Click the icon to view the balance sheet) Other data for Giseppe Tire Company (Click the icon to view the other data Read the requirements Requirement 1. Prepare Giseppe's operating budget and cash budget for 2025 by quarter. Required schedules and budgets includer sales budget, production overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budi hours. Round all calculations to the nearest dollar Begin by preparing the sales budget Giseppe Tire Company Sales Budget For the Year Ended December 31, 2025 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be sold Sales nuire now Enter any number in the edit fields and then click Check Answer Clear All 18 pants remaining a Type here to search O Data Table 19 overhead cost - X Balance Sheet December 31, 2024 20 Assets ird Current Assets arter Cash $ 52.000 Accounts Receivable 32,000 Raw Materials Inventory 1,800 3,500 89.300 Finished Goods Inventory Total Current Assets Property. Plant, and Equipment Equipment Less: Accumulated Depreciation 155,000 (106.000) 49.000 S 138.300 Print Done O BI 1 of 1 (0 complete) et and cash budget for 2025 by quarter. Required schedules and budgets include, sales budget production budget, direct materials bud and administrative nufacturing overhead Data Table tre Company Budget December 31, 20 cond Third arter Quarter Property. Plant, and Equipment Equipment Less: Accumulated Depreciation 155.000 (106,000) 49,000 Total Assets $ 138,300 Liabilities Current Liabilities Accounts Payable 6,000 Check Answer Stockholders' Equity $ 24 Common Stock, no par 110.000 22,300 Retained Earnings 132,300 Total Stockholders' Equity S 138,300 Total Liabilities and Stockholders Equity Print Done ES 2025 by quarter Required schedules and budgets include: sales budget production budoet direct materi 1 More Info (Unless otherwise noted, assume all of the following events occurred during 2024 and that any balances given are stated as of December 31, 2024.) Budgeted sales are 1,600 tires for the first quarter and expected to increase by 200 tires per quarter. a. Cash sales are expected to be 40% of total sales, with the remaining 60% of sales on account b. Finished Goods Inventory on December 31, 2024 consists of 100 tires at $35 each. Desired ending Finished Goods Inventory is 30% of the next quarter's sales, first quarter sales for 2026 are expected be 2,400 tires. FIFO inventory costing method is used. Raw Materials Inventory on December 31, 2024, consists of 200 pounds of rubber compound used to d. manufacture the tires. Direct materials requirements are two pounds of a rubber compound per tire. The cost of the compound e. is $9.00 per pound Desired ending Raw Materials Inventory is 40% of the next quarter's direct materials needed for production, desired ending inventory for December 31, 2025 is 200 pounds indirect materials are finsignificant and not considered for budgeting purposes. g. Each tire requires 0.40 hours of direct labor direct labor costs average $10 per hour. h. Variable manufacturing overhead is $2 per tire. Fixed manufacturing overhead includes $2.500 per quarter in depreciation and S34 490 per quarter for Print Done More Info h. Variable manufacturing overhead is $2 per tire. Fixed manufacturing overhead includes $2,500 per quarter in depreciation and $34.490 per quarter for other costs, such as utilities, insurance, and property taxes. Fixed selling and administrative expenses include $8,000 per quarter for salaries; $5,100 per quarter for i rent: $750 per quarter for insurance, and $500 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 1% of sales. Capital expenditures include $25,000 for new manufacturing equipment, to be purchased and paid in the first quarter. Cash receipts for sales on account are 75% in the quarter of the sale and 25% in the quarter following the sale: December 31, 2024, Accounts Receivable is received in the first quarter of 2025; uncollectible m accounts are considered insignificant and not considered for budgeting purposes Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter. n. December 31, 2024, Accounts Payable is paid in the first quarter of 2025 Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter o incurred. B. Income tax expense is projected at $3.000 per quarter and is paid in the quarter incurred. Giseppe desires to maintain a minimum cash balance of $50,000 and borrows from the local bank as Print Done B Tixed selling and administrave expenses include 56,000 per quarter for salaries: 55, TUU per quarter for i. rent; $750 per quarter for insurance, and $500 per quarter for depreciation. k Variable selling and administrative expenses include supplies at 1% of sales. Capital expenditures include $25,000 for new manufacturing equipment, to be purchased and paid in 1. the first quarter. Cash receipts for sales on account are 75% in the quarter of the sale and 25% in the quarter following the sale: December 31, 2024, Accounts Receivable is received in the first quarter of 2025, uncollectible m. accounts are considered insignificant and not considered for budgeting purposes. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter, n. December 31, 2024, Accounts Payable is paid in the first quarter of 2025. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter o incurred p. Income tax expense is projected at $3,000 per quarter and is paid in the quarter incurred. Giseppe desires to maintain a minimum cash balance of $50,000 and borrows from the local bank as needed in increments of $1,000 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 8% per year and paid at the beginning of the quarter based on the amount outstanding from the previous q. quarter Print Done a (Click the icon to view the balance sheet.) overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash reo hours. Round all calculations to the nearest dollar. Begin by preparing the sales budget. Giseppe Tire Company Sales Budget For the Year Ended December 31, 2025 First Second Third Quarter Quarter Quarter Fourth Quarter Total Budgeted tires to be sold Sales price per unit Total sales Enter any number in the edit fields and then click Check Answer 18 pants remaining c a Type here to search