H Comprehensive: Master Budgets, Variances, Performance Evaluation As you know from the previous problem, Sudsy Days manufactures white label soaps that other companies customize with their own logo. Sudsy Days is planning for the upcoming year by developing a master budget by quarters. Using the balance sheet and additional information below you will need to: a.Prepare Sudsy's operating budget and cash budget for the year by quarter. Required schedules and budgets include: a.Sales budget b.Production budget c.Direct materials budget e.Manufacturing overhead budget f.Cost of goods sold budget g.Selling and administrative expense budget 0 1 2 d.Direct labor budget 3 4 15 16 17 18 19 b. 20 21 b. Budgeted Balance Sheet 22 h.Schedule of cash receipts i.Schedule of cash payments j.Cash budget Prepare Sudsy Days annual financial budget, including: a. Budgeted Income Statement 25 23 Note that manufacturing overhead costs are allocated based on DL hours. 24 Sudsy Days a.c 26 27 28 29 30 Current Assets: 31 Cash 32 33 23 A/R 34 35 Raw Materials Inventory Finished Goods Inventory Total Current Assets Balance Sheet December 31, 2018 Assets $ 58,000 22,000 1,200 5,400 86,600 36 Plant Property & Equipment: 37 Equipment 38 Less: Accumulated Depreciation 39 Total Assets 142,000 (47,000) 95,000 181,600 40 E a.d Dir 41 Liabilities 42 Current Liabilities: 43 Accounts Payable $ 8,000 44 45 Stockholders' Equity Bu 46 Common Stock, no par $ 120,000 Dir 47 Retained Earnings 53,600 Dir 48 Total stockholders' equity 173,600 Dire 49 Total Liabilities and Stockholders' Equity $ 181,600 Bud 50 a.e Manul 51