https://www.docusi... OneLogin DO http://conferencen... 79.6 Percent - Calcu... -1.doc rt2-1.doc (27.5 KB) ZO Water Play, Inc. Part 2-Constant Demand and Seasonal Budgets 1. The company has decided they needed to create a full set of budget schedules including financial statements for the first year of operations based on an assumption of constant demand of 18,000 quarterly and 72,000 for the first year (appendices B-1 through B-11). A second set of budget schedules and financial statements based on expected unit sales of 15,000 in quarter one. 25,000 in quarter two 20,000 in quarter three and finally 12,000 in quarter four for a total of 72.000 for the year based on a seasonal demand pattern (appendices C-1 through C-11). We expect the same quarterly sales patterms in year two meaning 18,000 units per quarter under constant demand and 15,000 units in quarter one under seasonal demand. Compare the constant demand to the seasonal demand budget. Explain the major differences in each of the budget schedules, cash budget and financial statements on both a quarterly and annual basis. Remember the beginning and ending raw material and finished goods inventory units will cause differences in the budgets but also focus on the differences between accrual and cash timing figures. D. o BE File Home Insert Page Layout Formulas Data Review View Help Acrobat Times New Roman - 12-A A 2 Wrap Text General Paste BIU Merge & Center $ -% 8-98 Clipboard 15 Font Alignment Number A2 fi Water Play, Inc. B C 1 Appendix B-1 2 3 4 Water Play, Inc. Beginning Balance Sheet January 1, 20XX Constant Demand Part 2 5 6 S 25,000.000 13,500,000 32.860,200 S 7 Assets 8 Current Assets 9 Cash 10 Raw Material Inventory 11 Finished Goods luventory 12 Total Current Assets 13 Land 14 Buildings 15 Equipment 16 Total Noncurrent Assets 17 Total Assets 18 71.360,200 12,000,000 72,000,000 140.000.000 S 224,000,000 295,360,200 Contribution IS A-7 Beg BSPart2 Constant B-1 Beg8SPart2Seasonal C-1 Sales Budget Constantl... Type here to search O General Times New Roman - 12-A A BIU - OA 2 Wrap Text Merge Center Paste $ % 9 Clipboard Font 5 Alignment Numbe A2 > Water Play, Inc. B C D 150.000.000 19 20 21 Liabilities 22 Term Loan Note Payable 23 24 25 Stockholders' Equity 26 Common Stock (Si par value, 27 25 million shares authorized 28 3 million shares issued and 29 outstanding 30 Paid in Capital 31 Total Contributed Capital 32 Retained Eamings 33 Total Stockholders' Equity 34 Total Liabilities and 35 Stockholders' Equity 36 Contribution IS A-7 3,000,000 142,360.200 145.360,200 145,360,200 S 295,360,200 07 4 BegBSPart2 Constant B-1 BegBSPart2Seasonal C-1 Sales Budget Constant Type here to search O AutoSave Water Play Spreadsheets - Compatibility Mode - Excel Search File Home Insert Page Layout Formulas Data Review View Help Acrobat General Times New Roman - 12 - AA== BIU EOA 2 Wrap Test Es Merge & Center Paste $ - % 9 %8-28 Conditi Formatti Clipboard Fant Alignment Number A8 f Assets A B 1 Appendix C-1 2 3 4 5 Water Play, Inc. Beginning Balance Sheet January 1, 20XX Seasonal Demand Part 2 S 6 7 8 Assets 9 Current Assets 10 Cash 11 Raw Material Inventory 12 Finished Goods Inventory 13 Total Cutcut Assets 14 Land 15 Buildings 16 Equipment 17 Total Noucutent Assets 18 Total Assets 25,000,000 12,000,000 27,383.500 $ 64,383.500 12.000.000 72.000.000 140,000,000 224,000,000 288,383,500 S 4 Contribution IS A-7 Beg8SPart2Constant B-1 BegBSPart2Seasonal C-1 Sales Budget Constant ... 1 Type here to search O Help Acrobat General File Home Insert Page Layout Formulas Data Review View Times New Roman - 12 - AA == 25 Wrap Text BIU O-A Murge & Conte- Clipboard Font Alignment AB > f Assets $. % 948-23 Conditional te Formatting sy Number B ayti 150,000,000 22 Liabilities 23 Term Loan Note Payable 24 25 26 Stockholders' Equity 27 Common Stock (S1 par value, 28 25 million shares authorized 29 3 million shares isted and 30 outstanding 31 Paid in Capital 32 Total Contributed Capital 33 Retained Eamings 34 Total Stockholders' Equity 35 Total Liabilities and 36 Stockholders' Equity 37 38 39 40 Contribution IS A 7 3.000.000 135,383,500 138,383.500 + 138,383,500 S 288383,500 BeggsPart2constant B-1 BegBSPart2Seasonal C-1 Sales Budget Constanti... + Type here to search OBI C https://www.docusi... OneLogin DO http://conferencen... 79.6 Percent - Calcu... -1.doc rt2-1.doc (27.5 KB) ZO Water Play, Inc. Part 2-Constant Demand and Seasonal Budgets 1. The company has decided they needed to create a full set of budget schedules including financial statements for the first year of operations based on an assumption of constant demand of 18,000 quarterly and 72,000 for the first year (appendices B-1 through B-11). A second set of budget schedules and financial statements based on expected unit sales of 15,000 in quarter one. 25,000 in quarter two 20,000 in quarter three and finally 12,000 in quarter four for a total of 72.000 for the year based on a seasonal demand pattern (appendices C-1 through C-11). We expect the same quarterly sales patterms in year two meaning 18,000 units per quarter under constant demand and 15,000 units in quarter one under seasonal demand. Compare the constant demand to the seasonal demand budget. Explain the major differences in each of the budget schedules, cash budget and financial statements on both a quarterly and annual basis. Remember the beginning and ending raw material and finished goods inventory units will cause differences in the budgets but also focus on the differences between accrual and cash timing figures. D. o BE File Home Insert Page Layout Formulas Data Review View Help Acrobat Times New Roman - 12-A A 2 Wrap Text General Paste BIU Merge & Center $ -% 8-98 Clipboard 15 Font Alignment Number A2 fi Water Play, Inc. B C 1 Appendix B-1 2 3 4 Water Play, Inc. Beginning Balance Sheet January 1, 20XX Constant Demand Part 2 5 6 S 25,000.000 13,500,000 32.860,200 S 7 Assets 8 Current Assets 9 Cash 10 Raw Material Inventory 11 Finished Goods luventory 12 Total Current Assets 13 Land 14 Buildings 15 Equipment 16 Total Noncurrent Assets 17 Total Assets 18 71.360,200 12,000,000 72,000,000 140.000.000 S 224,000,000 295,360,200 Contribution IS A-7 Beg BSPart2 Constant B-1 Beg8SPart2Seasonal C-1 Sales Budget Constantl... Type here to search O General Times New Roman - 12-A A BIU - OA 2 Wrap Text Merge Center Paste $ % 9 Clipboard Font 5 Alignment Numbe A2 > Water Play, Inc. B C D 150.000.000 19 20 21 Liabilities 22 Term Loan Note Payable 23 24 25 Stockholders' Equity 26 Common Stock (Si par value, 27 25 million shares authorized 28 3 million shares issued and 29 outstanding 30 Paid in Capital 31 Total Contributed Capital 32 Retained Eamings 33 Total Stockholders' Equity 34 Total Liabilities and 35 Stockholders' Equity 36 Contribution IS A-7 3,000,000 142,360.200 145.360,200 145,360,200 S 295,360,200 07 4 BegBSPart2 Constant B-1 BegBSPart2Seasonal C-1 Sales Budget Constant Type here to search O AutoSave Water Play Spreadsheets - Compatibility Mode - Excel Search File Home Insert Page Layout Formulas Data Review View Help Acrobat General Times New Roman - 12 - AA== BIU EOA 2 Wrap Test Es Merge & Center Paste $ - % 9 %8-28 Conditi Formatti Clipboard Fant Alignment Number A8 f Assets A B 1 Appendix C-1 2 3 4 5 Water Play, Inc. Beginning Balance Sheet January 1, 20XX Seasonal Demand Part 2 S 6 7 8 Assets 9 Current Assets 10 Cash 11 Raw Material Inventory 12 Finished Goods Inventory 13 Total Cutcut Assets 14 Land 15 Buildings 16 Equipment 17 Total Noucutent Assets 18 Total Assets 25,000,000 12,000,000 27,383.500 $ 64,383.500 12.000.000 72.000.000 140,000,000 224,000,000 288,383,500 S 4 Contribution IS A-7 Beg8SPart2Constant B-1 BegBSPart2Seasonal C-1 Sales Budget Constant ... 1 Type here to search O Help Acrobat General File Home Insert Page Layout Formulas Data Review View Times New Roman - 12 - AA == 25 Wrap Text BIU O-A Murge & Conte- Clipboard Font Alignment AB > f Assets $. % 948-23 Conditional te Formatting sy Number B ayti 150,000,000 22 Liabilities 23 Term Loan Note Payable 24 25 26 Stockholders' Equity 27 Common Stock (S1 par value, 28 25 million shares authorized 29 3 million shares isted and 30 outstanding 31 Paid in Capital 32 Total Contributed Capital 33 Retained Eamings 34 Total Stockholders' Equity 35 Total Liabilities and 36 Stockholders' Equity 37 38 39 40 Contribution IS A 7 3.000.000 135,383,500 138,383.500 + 138,383,500 S 288383,500 BeggsPart2constant B-1 BegBSPart2Seasonal C-1 Sales Budget Constanti... + Type here to search OBI C