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Electric Monkey Computer Accessories assembles a computer networking device from kits of imported components. You have been asked to develop a quarterly and annual operating

Electric Monkey Computer Accessories assembles a computer networking device from kits of imported components. You have been asked to develop a quarterly and annual operating budget and pro forma income statements for next year. You have obtained the following information:Electric Monkey Computer Accessories assembles a computer networking device from kits of imported components. You have been asked to develop a quarterly and annual operating budget and pro forma income statements for next year. You have obtained the following information:
Beginning-of-year balances
Cash $75,000
Accounts receivable (previous quarters sales) $245,000
Raw materials 950 kits
Finished goods 1,500 kits
Accounts payable (materials) $125,000
Borrowed funds $30,000
Desired end-of-year inventory balances
Raw materials 1,000 kits
Finished goods 1,600 kits
Desired end-of-quarter balances
Cash $30,000
Raw materials as a portion of the following quarters production 0.20
Finished goods as a portion of the following quarters sales 0.30
Manufacturing costs
Standard cost per unit Units Unit price Total
Direct labor hours at rate 0.50 hour $30.00 $15.00
Raw materials 1 kit $75.0075.00
Variable overhead/labor hour 0.50 hour $5.002.50
Total standard variable cost $92.50
Fixed cost per quarter
Cash $110,000
Depreciation 15,000
Total $125,000
Selling and administrative costs $8.00
Variable cost per unit
Fixed costs per quarter
Cash $150,000
Depreciation 7,500
Total $157,500
Interest rate per quarter 0.015
Portion of sales collected
Quarter of sale 0.70
Subsequent quarter 0.29
Bad debts 0.01
Portion of purchases paid
Quarter of purchase 0.60
Subsequent quarter 0.40
Unit selling price $225
Sales forecast
Quarter First Second Third Fourth
Unit sales 4,4004,6004,5004,800
Additional information
All cash payments except purchases are made quarterly as incurred.
All borrowings occur at the start of a quarter.
All repayments on borrowings occur at the end of a quarter.
At the time the principal is repaid, interest is paid on the portion of principal that is repaid.
Borrowings and repayments may be made in any amount
Required
Note: Do not use negative signs with any of your answers in the requirements that follow.
Part A
Part B
Part C
Part D
Part E
Part F
Part G
f. A cash budget for each quarter and the year.
Electric Monkey Computer Accessories
Cash Budget
For the Year Ending December 31
First Second Third Fourth Total
Beginning balance
Operating cash receipts:
Current quarter's sales
Previous quarter's sales
Total operating receipts
Total available for operations
Cash disburse
Beginning-of-year balances
Cash $75,000
Accounts receivable (previous quarters sales) $245,000
Raw materials 950 kits
Finished goods 1,500 kits
Accounts payable (materials) $125,000
Borrowed funds $30,000
Desired end-of-year inventory balances
Raw materials 1,000 kits
Finished goods 1,600 kits
Desired end-of-quarter balances
Cash $30,000
Raw materials as a portion of the following quarters production 0.20
Finished goods as a portion of the following quarters sales 0.30
Manufacturing costs
Standard cost per unit Units Unit price Total
Direct labor hours at rate 0.50 hour $30.00 $15.00
Raw materials 1 kit $75.0075.00
Variable overhead/labor hour 0.50 hour $5.002.50
Total standard variable cost $92.50
Fixed cost per quarter
Cash $110,000
Depreciation 15,000
Total $125,000
Selling and administrative costs $8.00
Variable cost per unit
Fixed costs per quarter
Cash $150,000
Depreciation 7,500
Total $157,500
Interest rate per quarter 0.015
Portion of sales collected
Quarter of sale 0.70
Subsequent quarter 0.29
Bad debts 0.01
Portion of purchases paid
Quarter of purchase 0.60
Subsequent quarter 0.40
Unit selling price $225
Sales forecast
Quarter First Second Third Fourth
Unit sales 4,4004,6004,5004,800
Additional information
All cash payments except purchases are made quarterly as incurred.
All borrowings occur at the start of a quarter.
All repayments on borrowings occur at the end of a quarter.
At the time the principal is repaid, interest is paid on the portion of principal that is repaid.
Borrowings and repayments may be made in any amount
Required
Note: Do not use negative signs with any of your answers in the requirements that follow.
Part A
Part B
Part C
Part D
Part E
Part F
Part G
e. A selling and administrative expense budget for each quarter and the year.
Electric Monkey Computer Accessories
Selling and Administrative Expense Budget
For the Year Ending December 31
First Second Third Fourth Total
Unit sales
Sales Revenue
Variable costs:
Bad debts
Other
Total
Fixed costs
Total selling and admin.

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