How do I prepare a sales budget with formula's that is similar to Illustration 22.3 of the textbook (illustration attached). Please explain but also show formulas.

Illustration 22.3

H C D E F G Serious Business, Inc. The company is preparing its budget for the coming year, 2020. The first step is to plan for the FIRST QUARTER of that 2 coming year. The following information has been gathered from their managers 3 4 Sales Information 5 Period Units 6 November 113,000 Actual 7 December 101,000 Actual 8 January 111,000 Planned 9 February 112,000 Planned | Grading guidelines are on the instructions Grading 10 March 114,000 Planned 11 tab. April 124,000 Planned 12 May 136,000 Planned 13 Unit selling price $ 12.00 14 15 Finished Goods Inventory Planning 16 The company likes to keep 10% of the next month's unit sales in finished goods ending inventory. 17 18 Accounts Receivable & Collections 19 Sales on Account 100% ! 20 Collections Activity 21 Month of Sale 85% 22 Month after Sale 15% 23 Balance at 12/31/19 $ 185,000.00 24 Materials Inventory Costs & Planning Direct Materials Amount Used per Unit Cost Metal 2 lb $ 1.00 lb The company likes to keep 5% of the material needed for the next month's production in raw materials ending inventory. 100% Accounts Payable & Disbursements Purchases on Account Payment Activity Month of Purchase Month after Purchase Balance at 12/31/19 50% 50% 120,000 $ Direct Labor & Costs Time per Unit Production Pay Rate/Hour $ 9 minutes 7.00 0.30 0.45 0.45 0.25 Manufacturing Overhead Costs Variable costs per direct labor hour Indirect materials Indirect labor Utilities Maintenance Fixed costs per month Salaries Depreciation Property taxes Insurance Janitorial $ 42,000 16,800 2,675 1,200 1,300 $ 1.45 Selling and Administrative Costs Variable costs per unit sold Fixed costs per month Advertising Insurance Salaries Depreciation Other fixed costs 15,000 14,000 72,000 25,000 3,000 Income Taxes Accrued on Monthly Net Income Amounts Accrued Q4 2019, paid January 2020 35% rounded to nearest dollar 200,000 $ Cash and Financing Matters Cash Balance, 12/31/2019 2020 Minimum Balance Required $ 90,000 715,000 $ Monthly Dividends Outstanding Shares 2.25 per share 5,000 Line of Credit Limit None Borrowing Increment Required $ 1,000 Interest Rate Draws First of Month Repayments Last of Month Interest accumulates to the loan balance and is paid in full with each repayment. 9% Additional Item Fixed Asset Purchase Month $ 445,000 February The sales budget is prepared by multiplying the expected unit sales volume for each product by its anticipated unit selling price. Hayes Company expects sales volume to be 3,000 units in the first quarter, with 500-unit increases in each succeeding quarter. Illustration 22.3 shows the sales budget for the year, by quarter, based on a sales price of $60 per unit. Hayes Company Sales Budget Data Review View Insert Formulas Home P18 Page Layout fx A BC DE F Hayes Company Sales Budget For the Year Ending December 31, 2022 Quarter 2 Year 3,000 3,500 4,000 4,500 15,000 x $60 X $60 x $60 X $60 X $60 $180,000 $210,000 $240,000 $270,000 $900,000 Expected sales units Unit selling price 8 Total sales ILLUSTRATION 22.3 Sales budget We've updated our read aloud feature! Activ Give it a try here