HELP WITH CORRECTIONS AND FORMULAS IN EXCEL PLEASE!!!

Annual Budget Required: Prepare a comprehensive 6-month budget, including supporting schedules and a report for the period January 1, 2020 to June 30, 2020 for Hedton Inc (a fictional company). This must include: 1. Sales forecast and Budget. 2. Cash Receipts Budget. 3. Purchase Budget. 4. Cash Purchases Disbursements Budget. 5. Operating Expense Budget. 6. Summary Cash Budget. 7. Budgeted Income Statement. 8. Budgeted Balance Sheet. Notes and Hints The schedules/budgets must be prepared using the Excel template provided. You may only input a "hard number into a pink cell. All yellow cells must be formula based (no numbers included - use appropriate cell referencing) I recommend constructing the formulas for one month and then copying the formulas over to the remaining months Rounding is encouraged and you may ignore interest and taxes. INFORMATION FOR HEDRON, INC. ANNUAL BUDGET 1. Hedton, Inc. is a company that re-sells one product, a particularly comfortable lawn chair. An overseas contractor makes the product exclusively for Hedien, so Hedron has no manufacturing-related costs. 2. As of 11/01/2019, each lawn chair costs Hedton $4 per unit Hedton, sells each chair for $10 per unit. 3. The estimated sales in units) are as follows: Nov 2019 11,250 Dec 2019 11,600 Jan. 2020 10,000 Feb. 2020 11.400 Mar. 2020 12,000 Apr. 2020 15,600 May 2020 18.000 June 2020 22.000 July 2020 18.000 4. Per an existing contract, the cost of each chair is scheduled to increase by 5% on March 1, 2020. In addition, because of increasing costs of plastic webbing, the cost is anticipated to increase by an additional 5% on May 1, 2020. To offset these increases, the company plans to raise the sales price to $11.25 per unit beginning May 1, 2020. The sales forecast (i.e., estimated sales in units) takes this price increase into account. 5. Thirty percent of any month's sales are for cash, and the remaining 70% are on credit. Thirty percent of the credit sales are collected in the month of sale, 50% are collected in the following month, and 16% are collected in the second month after the sale. The remaining receivables are deemed uncollectible. Bad debts are written off in the month the debt is deemed uncollectible (e.g. if the sale is made in January and is not collected by the end of March, it is written off in March.) No accrual for estimated bad debts is made in the month of sale. 6. The firm's policy regarding inventory is to stock (ie have in ending inventory) 40% of the forecasted demand in units (ie., estimated sales) for the next month Hedcon uses the first-in, first-out (FIFO) method in accounting for inventories. 7. Forty percent of the inventory purchases are paid for in the month of purchase and the remaining 60% are paid in the following month (i.e. all the previous month's Accounts Payable are paid off by the end of any month.) 8. Per a prior contract, a cash payment of $50,000 for equipment previously purchased is due in January Another payment of $30,000 is due in February. Depreciation on the equipment previously purchased is included in the overhead cost detailed in item 11 below. Also, dividends of $12,000 are to be paid in March 9. Monthly operating expenses consist of the following (if these are cash expenses, they are paid when incurred): Salaries and Wages Sales Commissions Rent Other Variable Cash Expenses Supplies Expense: See note (1) Other: See note (2) $3.000 7% of sales revenue $8,000 6% of sales revenue $2,000 $48.000 Note: 1. Hedron maintains, on hand, one month's worth of supplies. 2. Other general and administrative overhead is expected to be $48,000 per month. Of this amount, $24,000 represents depreciation and other non-cash expenses. 10. The company must maintain a minimum cash balance of $15,000. Borrowing can make up shortfalls. For simplicity, assume that the bank will only lend (and accept repayments) in $1,000 increments. Ignore interest on the loan in your calculations, but minimize the amount borrowed and pay off any loans as soon as possible. 11. Cash on hand as of December 31, 2019 is expected to be $15,000. In addition, there will be no notes payable as of this date. . 12. See below the other Balance Sheet accounts with their balances as of December 31, 2019. Supplies... S 2,000 Property, Plant and Equipment 970,000 Accumulated Depreciation 526,475 Common Stock 200,000 Retained Earnings. 322,811 HEDRON BUDGET PROJECT, 2020 Cash Receipts Budget Total Cash Receipts, January: Total Cash Receipts, Jan - June: Uncollectible, January: Uncollectible, Jan June: $104,200 $842,847 $ 3,150 $ 20,118 Purchase Budget Total Purchases, Jan - June: $391,200 Cash Budget Total Cash Disbursements, Jan-June: $799,726 Ending Cash Balance, June: $ 58,121 Budgeted Income Statement Operating Expenses, Total: Net Income, Total: $508,318 $ 56,234 Budgeted Balance Sheet Total Assets: $621,023 4 5 Hedion, Inc. Sales Budget For the mos ending June 20 7 8 Budgedurit Sales 9 Selling price per unit 10 Total Sales Nov 19 11250 10.00 112,500 Dec 19 11.600 10.00 $ 116.000 Jan 120 10,000 10.00 $ 100,000 Feb 20 Mat 20 11,400 12,000 0.00 $0.00 $ 114.000 12,000 $ Apr 20 15,600 10.00 $ 156,000 Ma 20 June 20 6 mos total 18,000 22,000 111,850 1125$ 11.25 202.500 $ 247.500 5 1,168,500 $ $ 30% 70% 33,750 $ 78,750 112.500 5 34,800 $ 81200 115,000 $ 30,000$ 70,000 100,000 $ 34,200 $ 78.800 114.000 5 36,000$ 84,000 120.000 3 46800$ 109.200 156,000 $ 60,750 $ 74,250 $ 141,750 173.250 202,500 $ 247.500 5 350,550 817,350 1,168,500 12 Cash Sales 13 Credit Sales 14 15 Cash Sales 16 Credit Sales 17 Total Sales 19 19 20 Current month AIR Collections 21 1month prior AIR Collections 22 2 months prior AIR Collections 23 Uncollectible 24 30% 50% 16% HedionIn Cash Collections For the mos ending June 20 27 28 29 30 Current month oath Sales 31 Current month A/R Collections 32 1month prior A/R Collections 33 2 months prior AIR Collections 34 Total cash collections 35 36 Bad Debt Expense 37 38 Desired ending inventory Jan 20 30,000 21000 35,000 11200 97,200 $ Feb 20 Mar20 34 200 36,000 23.940 25,200 39,900 42.000 12.768 1.440 110.808$ 116,640 Apr 20 May 20 June 20 6mos total 46.800 60,750 74 250 $350,550 32.780 42.525 519751 245,385 54,600 70,075 86,625 $ 408,975 17,472 22.680 27.720 130,872 1516925 196,830 240,570 5 1,135,782 2,000 3,192 3,360 4,368 5,670 6930 32,719 409 Buddet FIFO Calculation + 40 42 43 44 45 Budged unit Sales 46 Add desired ending inventory 47 Total needs 49 Les Beginning Inventory 49 Required Purchases 50 51 Cost per unit 52 Purchases Hedron, no Purchase Budget For the mos ending June 20 Nov 19 Dec 19 Jan 20 11250 11,600 10,000 4,640 4,000 4,560 15,600 14,560 4,640 4,000 10,960 10,560 Feb 20 11400 4800 16.200 4,560 11640 Mar20 12,000 6,240 18,240 4,000 13,440 Apr 20 15,600 7,200 227800 61240 16,560 Max 20 18,000 8.800 26 800 7.200 19.600 June 20 22000 7.200 29 200 8.800 20.400 Smos total 111,850 47.440 159.290 40.240 103,160 15890 4.00 $ 43,840$ 4003 42.240$ 4.000 465603 4.20 $420 $ 56,448$ 69,552 $ 4.41 $ 86,436 $ 89.964 $ 435,040 54 Paid in Month of Purchase 4072 55 % Paid in Month after Purchase 60% 56 57 58 Hedron, Inc. 59 Schedule of Budgeted Cash Disbursements for Merchandise Purchases 60 For the mos ending June 20 61 62 Jan 20 Feb 20 Mar 20 Apr 20 May 20 June 20 6 most 63. Cash purchases $ 16.896 $ 225791 278211 34,5743 35,9866 156.480 64 1 month prior A/P Collections 26,304 25,344 27936 33,8691 41.731 51.862207.046 65 Cash disbursements for merchandise purch. 431200$ 43,368 50,5155 616305 76,30513 87842 363,526 65 67 68 Variable Operating Expenses: 69 Sales Commissions, % of Revenue 70 Other Variable Cash Expenses, % of Revenge 71 Find Operating expenses 72 Salaries and Vages 73 Rent 74 Supplies Expense 75 Other Overhead 76 Other Depreciation Rinnat FIFO Calculation Hedron, Inc. Operating Expense Budget For the 6mos ending June 20 Jan 20 Feb 20 Mar 20 Apr 120 May 20 June 20 6mos total 77 78 79 80 81 82 83 Salaries and Wages 84 Sales Commissions 85 Rent 86 Other Variable Cash Expenses 87 Supplies Expense 88 Other - Overhead 89 Other - Depreciation 90 Bad Debt Expense 91 Total operating expenses 92 Depreciation and noncash items 93 Bad Debt Expense 94 Cash disbursements for operating expenses 95 96 Equipment payment. January 97 Equipment payment - February 98 Dividends - March 99 Minimum Monthly Cash Budget 100 Hedron, Inc. Cash Budget For the 6 mos ending June 20 Jan 20 Feb 20 Mar 20 Apr 20 May 20 June 20 6 mos total 100 101 102 103 104 105 106 Cash balance, beginning 107 Add collections from customers 108 Total cash available 109 Less disbursements: 110 Cash disbursements for merchandise purch 111 Cash disbursements for operating expenses 112 Equipment purchases 113 Dividends 114 Total cash disbursements 115 Excess of receipts over disbursements 116 Financing 117 Borrowing.note 118 Repayments-note 119 Total Financing 120 Cash balance, ending 121 122 123 124 125 126 Hedron, Inc. Budgeted Income Statement For the 6 mos ending June 20 127 Jan 20 Feb '20 Mar '20 Apr 20 May 20 June 20 Total 128 Sales.net 129 Cost of goods sold: 130 Gross margin 131 Total operating expenses 132 Net Income 133 133 134 Hedron, Inc. 135 Budgeted Balance Sheet 136 6/30/2020 137 138 Assets 139 Current Assets: 140 Cash 141 Accounts receivable 142 Supplies 143 Merchandise Inventory 144 plant and Equipment: 145 Buildings and Equipment 146 Accumulated Depreciation 147 Total assets 148 149 Liabilities and Equity 150 Accounts payable 151 Capital stock 152 Retained earnings 153 Total liabilities and equity 154 A B C D E F G H 1 2 FIFO Calculation 4 Beg Inventory Beg Inventory - Units Purchases Purchases - Units COGS - Units Ending Ending Inventory 5 COGS Inventory - Units 6 7 8 Jan Feb Mar Apr May Jun 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Budget FIFO Calculation +