h$.$ Sales commissions are $14\%$ of sales price. $100\%$ of sales commissions are payable on the $15$th day of the month after the sale.

i$.$ Administrative salaries and fringe benefits are $$60,000$ per month. Administrative salaries are paid one$-$half on the third Friday of the current month and one$-$half is on the first Friday of the next month.

j$.$ Rent on administrative office space is $$10,000$ per month. Rent for each month is due on the first day of each month.

k$.$ On January $1,20$xx the Company will pay an $$84,000$ annual insurance liability premium covering January through December, $20$xx$.$ This insurance policy is a different policy than MOH insurance.

l$.$ Other administrative expenses are estimated to be $7\mathrm{.}5\%$ of sales. Other administrative expenses are paid in the month after the expense occurs.

m$.$ The federal and state income tax rate is estimated at $25\%.$ Taxes accrue on each month$$s income and will be paid quarterly on April $15,$ July $15,$ etc. Note: Your company is successful, and YOU WILL NEED TO PAY TAXES.

n$.$ The company has a $$750,000$ line of credit secured to its inventory and accounts receivable through a private investor. Borrowing against this line must be in increments of $$25,000$ and happen on the $16$th day of the month. Repayments must also occur in $$25,000$ increments on the $16$th day of the month. Your borrowings and repayments should be adjusted to provide a minimum ending cash balance of $$25,000$ each month.

o$.$ Interest for the line of credit is calculated at an of rate of $6\%$ assuming a $360$ year. Interest expense is payable on the $1$st day of the month after the borrowing occurred.

p$.$ Beginning cash balance on January $1,20$xx is projected to be $$25,000.$ This money was raised through issuing common stock and should be recorded accordingly.

Check Figures:

Production$--$March, Required Production, Units: $2168.$ If you get the wrong number, read D$.$

Raw Materials$--$March, Packets to Purchase, Units $2433.$ If you get the wrong number, read E between the first comma and the first period.

Income Statement$--$January, Sales: $$1,406,095$

Income Statement$--$January, Operating Income: $$295,615$

Income Statement$--$January, Net Income: $$221,383$

Cash Budget$--$January, Total Budget Disbursements: $$652,399$

Cash Budget$--$January, Ending Cash: $$25,673$

Balance Sheet$--$January, Total Assets: $$1,323,843$

Balance Sheet$--$February, Total Assets: $$1,794,767$

Balance Sheet$--$March, Total Assets: $$2,136,574$Note: I have colored coded th is tab to make it easier. All numbers are in $$.$

Section $1$: SG&A Budget $($to Income Statement$)$

Jan

Feb

Apr

Qtr Total

$\backslash$table$[[,$Jan,Feb,Mar,Apr,Qtr Total$],[$Variable$],[$Sales Commission $($from Sales$)],[$Bad Debt Expense $($from Sales$)],[$Other Admin Expense $($from Sales$)],[$Total Variable$],[$Fixed$],[$Rent Expense$],[$Insurance Expense$],[$Admin Salaries$/$Benefits$],[$Total Fixed$],[$Total Selling and Administrative$],[,,,,,],[,,,,,],[$Variable$],[$Section $2$: Expected Cash Disbursements$-$Sales Commission $($to Section $14)],[,$Jan,Feb,Mar,Apr,Qtr Total$],[$Jan Sales Commission$],[$Feb Sales Commission$],[$Mar Sales Commission$],[$Total Cash Disbursements$],[$Section $3$: Wages Payable $($to Section $15)],[,$Jan,Feb,Mar,Apr,Qtr Total$],[$Wages Payable, Beginning Bal$],[$Wages Payable, Ending Bal$],[$Section $4$: Expected Cash Disbursements$-$Bad Debt Expense $($None$)],[,$Jan,Feb,Mar,Apr,Qtr Total$],[$Bad Debt has nothing to do with cash.$],[$Section $5$: Allowance for Doubtful Accounts $($DA$)($to Balance Sheet$)],[,$Jan,Feb,Mar,Apr,Qtr Total$],[$Allowance for DA$,$ Beginning Bal$],[$Allowance for DA$,$ Ending Bal$],[$Section $6$: Expected Cash Disbursements$-$Other Admin Expense $($to Section $14)],[,$Jan,Feb,Mar,Apr,Qtr Total$],[$Jan Other Admin$],[$Feb Other Admin$],[$Mar Other Admin,,,,,$]]$