Hello, please help me with K.Classified Income Statement to N. Statement of Cash Flows.
Computer Project Comprehensive Budget Project 2a Mueller's Backpacks Manufacturing Co. Mueller's Backpacks Manufacturing Co. produces nylon backpacks and larger packs to sell to tourists visiting the Western United States and other tourist areas. The design of the two products is unique and represents a breakthrough in the industry. The company is completing its eighth year of operations and is preparing to build its master budget for the coming year, 2020. The budget will detail each quarter's activity and the activity for the year in total. The master budget will be based on the following information: A. Projected 2020 unit sales for each quarter and for the first two quarters of 2021 are as follows: Year 2020 2020 2021 2021 Produce Backpacks Larger Larger Backpacks Backpacks Backpacks First Quarter 20.790 18,480 23,100 20,790 18400 Second Quarter 41,580 27.720 36.960 30 030 Third Quarter 32,340 13,860 Fourth Quarter 27,258 4.620 B. The selling price for the above quarters is projected at $55,00 per smaller bags and $175.00 per larger bag C. Mueller's carefully screens its customers and expects no uncollectable 2,082 accounts. For budget purposes, each quarter has the following collection pattern: 10% of the total is cash sales/ 409% of the total will be collected later come back in the quarter of sale, 50%% of the total will be collected in the quarter Bic following the sale. D. Mueller's ended the current year (2018) with a finished goods inventory of Prockation 25.410 smaller bags and 13,840 larger bags. Because of a discouraging Buckget economic forecast, it plans to budget an ending inventory of fOl% of the next quarter's unit sales. The company's ending Work-in-Process inventory is expected to be $127 050 (this number will only be used in the Cost of Goods Manufactured Statement and Balance Sheet). E. The following are the budgeted standard costs to make 1 finished product, Backpacks Larger Backpacks Direct Material X.33 Nylon 330/sq. yd. @510.396 yd. 1.375 sq, yd. @510.396 yd. Lining .110 sq. yd. @$2.772 yd. .55 sq. yd. @$2.772 yd Direct Labor: Cutting . 110 hr. @520.79 hr. .165 hr. (@ 520.79 hr. Sewing .275 hr. (@534.65 hr. .44 hr. (@534.65 hr. Overhead: Variable Per Travel Bag @$3.58 Per larger bag @53.58 Fixed Per travel @$2.356 bag Per larger bag @$2.356F. The fixed overhead rate is based on a four year average and will be used only to cost the projected finished goods inventory on the Income Statement and Balance Sheet. G. Mueller's will start the budget year with 7,219 sq. yards of nylon and 8,689 Sq. yards of lining. For budgeting purposes, the plan is to always have an ending inventory of nylon equal to 30% of the next quarter's needs and lining equal to 25% of next quarter's needs. H. Mueller's buys raw material on account and plans to pay for 25% in the quarter of purchase and the remaining 75% in the next quarter. The accounts materials. payable account consists only of the unpaid portion of the purchase of raw I. Wages and salaries are paid on the last day of the month. J. Fixed overhead is projected as follows and is paid for in the quarter incurred (except for depreciation). Depreciation $20,790 per qtr. Property tax $4,274 per qtr. Supervisory Salary $25,988 per qtr. Insurance $1,444 per qtr. K. Variable overhead is budgeted as follows and is paid for in the quarter incurred. It is based on total units produced (small backpacks + larger backpacks). Indirect Materials $0.4851 per unit produced Indirect Labor $1.9173 per unit produced Maintenance $0.3696 per unit produced Utilities $0.8085 per unit produced L. Marketing expenses are as follows and are paid for in the quarter incurred. Advertising $25,988 per qtr. Commissions 5.0% of dollar sales Salary $31,763 per qtr. M. Fixed administrative expenses are as follows and are paid for in the quarter incurred (except for depreciation). Depreciation - $1,444 per qtr. Officers' Salaries - $25,988 per qtr Office Salaries - $18,625 per qtr Office Rent - $2,490.47 per qur Miscellaneous - $1,804.69 per qtrN . The Balance Sheet ( unclassified, for the year just ending (2018) is as follows :` ASSETS:` Cash $ 3:03, 240.0 Accounts Receivable 407. 010 0 Finished Goods Inventory - smaller $70, 232 Finished Goods Inventory - larger Work - in - process Inventory 235, 8:40 Nylon Inventory 123, 750 Lining Inventory* Property , plant, and equip . (net) $. 3. 520, 000 Total Assets 5. 6. 3 80.902 Liabilities :" MECounts Parable $204,000 Income Tax Parable $.1. 210, 000 Interest Payable Dividends Parable Short - lenin Debt Stockholders Equity .` Common Stock $ 3. 300, 0 0^ Retained Earnings $ 1. 651. 502 Total liabilities and Stockholder's Equity* $ 6. 380.5017 U. In January. Mueller's expects to declare a $240, 0.010 dividend . It will be paid " in the second quarter and & in the fourth quarter . P. Mueller's also plans to purchase and pay for $125, 000 of Equipment during Each quarter . ``. The income tax rate is 35%' and is paid on April 15 of the next year . Required : Prepare the formal master budget schedules for each quarter of the coming year , 2020 and for the year in total . Prepare formal financial statements for the year only . The following components must be included : 1 2 . _Sales budget 2 6. Production budget 3 6. Material purchases budget 4 d . Direct Labor budget {{ . Variable Overhead budget I f. Fixed Overhead budget FB. Marketing budget & h. General and Administration budget 9 1 . `Cash budget \\ . Schedule of Cost of Goods Manufactured ( annual only's W k . ! Classified Income Statement ( annual only* 12 1 . Retained Earnings Statement ( annual only* 13. m . Classified Balance Sheet ( annual only ] 14.17. Statement of Cash Flows - indirect method ( annual only"
