ede: Project 2 - Master Budgeting Saved Help Use this information for the questions 15-16 through 1E-19 The following information applies to the questions displayed below) Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2022 and reports a balance sheet at December 31, 2021 as follows: Endless Mountain Company d Balance Sheet December 31, 2021 Assets Current assets Cash 5 46,200 Accounts receivable (net) 260,000 Raw materiale inventory 14.500 yards) 11,250 Finished goods inventory (1,500 units) 32,250 Total current assets $349,700 Plant and equipment: Boldings and equipment 900,000 Accumulated depreciation 292,000 608,000 Plant and equipment, net 5957,700 Total assets Liabilities and stockholders' Equity Current liabilities: Accounts payable 5:58.000 Stockholders' equssy: $ 429,800 Common stock 279.900 Betained warnings 1 of 1 it! NE e: Project 2 - Master Budgeting Saved Help Save $158,000 Liabilities and Stockholders' Equity Current liabilities! Accounts payable Stockholders' equity! Common stock $ 419,800 Retained earnings 379,900 Total stockholders' equity Total liabilities and stockholders' equity 799, 700 $957,700 The company's chief financial officer (CFO), in consultation with various managers across the organization has developed the following set of assumptions to help create the 2022 budget: 1. The budgeted unit sales are 12,000 units, 37.000 units, 15,000 units, and 25,000 units for quarters 1-4, respectively Notice that the company experiences peak sales in the second and fourth quarters. The budgeted selling price for the year is $32 per unit. The budgeted unit sales for the first quarter of 2023 is 13,000 units. 2. All sales are on credit Uncollectible accounts are negligible and can be ignored. Seventy-five percent of all credit sales are collected in the quarter of the sale and 25% are collected in the subsequent quarter 3. Each quarter's ending finished goods inventory should equal 15% of the next quarter's unit sales 4. Each unit of finished goods requires 3.5 yards of raw material that costs $3.00 per yard. Each quarter's ending raw materials inventory should equal 10% of the next quarter's production needs. The estimated ending raw materials Inventory on December 31, 2022 is 5,000 yards. 5. Seventy percent of each quarter's purchases are paid for in the quarter of purchase. The remaining 30% af each quarter's purchases are paid in the following quarter. 6. Direct laborers are paid $18 an hour and each unit of finished goods requires o 25 direct labor-hours to complete. All direct labor costs are paid in the quarter incurred Prey 1 of 1 Nox maheducation.com - Master Budgeting i Saved Help 7. The budgeted variable manufacturing overhead per direct labor-hour is $3.00. The quarterly fixed manufacturing overhead is $150,000 including $20,000 of depreciation on equipment. The number of direct labor-hours is used as the allocation base for the budgeted plantwide overhead rate. All overhead costs (excluding depreciation) are paid in the quarter incurred. 8. The budgeted variable selling and administrative expense is $1.25 per unit sold. The fixed selling and administrative expenses per quarter include advertising ($25,000). executive salaries ($64.000), insurance ($12,000), property tax ($8,000), and depreciation expense ($8,000). All selling and administrative expenses (excluding depreciation) are paid in the quarter incurred. 9. The company plans to maintain a minimum cash balance at the end of each quarter of $30,000. Assume that any borrowings take place on the first day of the quarter. To the extent possible, the company will repay principal and interest on any borrowings on the last day of the fourth quarter. The company's lender imposes a simple interest rate of 3% per quarter on any borrowings, 10. Dividends of $15,000 will be declared and paid in each quarter 11. The company uses a last-in, first-out (LIFO) inventory flow assumption. This means that the most recently purchased raw materials are the "first-out" to production and the most recently completed finished goods are the "first-out" to customers ntegration Exercise 16 Master Budgeting [LO 8-2, LO 8-3, LO 8-4, LO 8-5, LO 8-6, LO 8-7, LO 8-8, LO 8 LO 8-10] Required: The company's CFO has asked you to prepare the 2022 master budget. To fulfill this request. prepare the following budget schedule and financial statements Project 2 - Master Budgeting 6 Saved Help Save Integration Exercise 16 Master Budgeting [LO 8-2, LO 8-3, LO 8-4, LO 8-5, LO 8-6, LO 8-7, LO 8-8, LO 8-9, LO 8-10] Required: The company's CFO has asked you to prepare the 2022 master budget. To fulfill this request, prepare the following budget schedules and financial statements 1. Quarterly sales budget including a schedule of expected cash collections. 2. Quarterly production budget 3. Quarterly direct materials budget including a schedule of expected cash disbursements for purchases of materials 4. Quarterly direct labor budget 5. Quarterly manufacturing overhead budget. 6. Ending finished goods inventory budget at December 31, 2022 7. Quarterly selling and administrative expense budget 8. Quarterly cash budget. 9. Income statement for the year ended December 31, 2022 10 Balance sheet at December 31, 2022 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Prepare the quarterly cash budget. Do not round intermediate calculations. Round final answer to the test whole dollar value 1 of 1 (hp Urmares Marmara nne nat neware ener Required information Cash Budget For the Year Ended December 31, 2022 Quarter Year 0 0 0 0 Beginning cash balance Add cash receipts: Collection from customers Total cash available Less cash disbursements Direct materials Direct labor Manufacturing overhead Selling and administrative Dividends Total cash disbursements Excess or (deficiency) of cash available over disbursements Financing Borrowings (at the beginnings of quarters) Repayment (at end of the year 0 0 0 0 0 0 0 0 0 Preu "roject 2 Master Budgeting Saved Required information Year 0 0 0 0 0 Beginning cash balance Add cash receipts: Collection from customers Total cash available Less cash disbursements: u materials Direct labor Manufacturing overhead Selling and administrative Dividends Total cash disbursements Excess or deficiency) of cash available over disbursements Financing Borrowings (at the beginnings of quarters) Repayment (at end of the year) Interest (at 3% per quarter) Total financing Ending cash balance 0 0 0 0 0 0 0 0 0 0 0 OS 5 0S 0 $ 1