I have attached 2 files. One is the excel file where there is 4 tabs of work in, and the last tab is the operating budgets which is what needs to be done here. But on the previous tabs in the excel is the information needed to complete the following budgets; Also I have also attached a file called "exhibit 3". That also provides all the numbers used to combine the following operating budgets. So from using exhibit 3 and the previous tabs in the excel file will have all the numbers to complete the budgets. The following budgets will be completed :

a. Sales budget/Cash collections Budget

b. Production budget

c. Direct materials cash disbursements budget

d. Direct labor budget, assuming that all labor is paid in the month incurred.

e. Manufacturing overhead disbursements budget

f. Operating expenses disbursements budget

*ALSO: In the operating budgets tab in the excel file I have filled the first line in of the Cash sales*

Note: When preparing the budgets, you should make maximum use of cell referencing and formulas in the Excel spreadsheets. You should not have to enter the same data more than one time (for example, you should enter monthly sales projections on the sales budget and then use cell referencing from the sales budget to incorporate this information in all of the other budgets). You should use formulas in Excel to perform all of your mathematical calculations.

If you have any questions let me know thank you.

EXHIBIT 2 Sales Projections, Collections, Purchases and Payments Monthly sales projections (in dozens of cookies): January The year you were born February The first four digits of your phone number March The first four digits of your Spartan ID April The last four digits of your Spartan ID You have stopped production of cookies at year end to facilitate the expansion of the business. Therefore, you expect to have no uncollected accounts receivables, unpaid accounts payable, Or raw material inventories at January 1, the beginning of your budget period. Collections on Sales: Cash sales are collected in the month of sale. Credit sales collected in the next month after sale Credit sales collected in the second month after sale Percentage 60% 25% 15% Production: The company produces complete batched of the cookies daily. No work-in-process is maintained. Raw materials: The company plans to maintain an ending inventory of raw materials at the end of each month calculated as a percentage of raw materials production needs for the next month. Desired ending raw materials inventory percentage: 10% Payment for Raw Materials: Percentage Paid in the month of purchase Paid in the month following purchase Paid in the second month following purchase 25% 45% 30% Finished goods: The company plans to maintain an ending inventory of finished goods at the end of each month calculated as a percentage of sales needs for the next month. Desired ending finished goods percentage: 5% See Exhibit 1 for information regarding raw material costs, manufacturing overhead, and operating expense. . THE BEST EVER LEMON SUGAR COOKIE COMPANY SALES PRICE/PER DZ MARK-UP ON TOTAL VARIABLE COSTS: RAW MATERIALS COST: DIRECT MATERIALS 1/4 cup of butter* .44 cup granulated sugar 1/4 egg 3/4 cup flour TOTAL RAW MATERIALS/1 DZ *1 stick butter = 1/2 cup 120% $7.89 UNIT COST/1 DZ $ $ $ $ 0.50 0.07 0.03 0.11 $ 0.70 $ 12.63 0.20 DIRECT LABOR COSTS: Hourly labor wage (includes taxes and benefits) Hours of labor per dozen Direct Labor Costs/1DZ 2.53 MANUFACTURING OVERHEAD Variable Costs (per dozen): 1/4 Teaspoon vanilla 1/4 Teaspoon lemon zest 1/4 Teaspoon baking soda .13 Teaspoon baking powder .13 Teaspoon salt $ $ $ $ $ 0.13 0.14 0.01 0.02 0.004 Fixed Costs (monthly): 1/2 Teaspoon lemon extract Utilities Other indirect materials and labor Maintenance Depreciation Supervision $ $ $ TOTAL $ OPERATING EXPENSES: Variable Costs (per dozen): Sales Commission Shipping Costs Salaries Depreciation $ $ 0.28 0.50 0.75 $ $ $ 500.00 2,000.00 2,500.00 1.84 $ 5,000.00 0.50 1.00 $ $ 5,000.00 200.00 $ 1,800.00 1.50 $ 7,000.00 Other (Marketing, OfficeSupplies, Insurance) TOTAL CONTRIBUTION MARGIN/1 DZ COST EQUATION/HIGH LOW METHOD BREAK EVEN POINT IN UNITS Fixed Costs (Price - Variable Costs) $ Fixed Costs (monthly): $4.54 $7.89 per unit TC=$7.89x + 60,044 DOZENS 2640.63 $'s $20,832.51 PROJECTED SALES FY2017 PER DOZEN/BATCH MONTH # OF DOZEN SOLD/ MONTHLY TOTAL SALES/ MONTHLY FIXED EXPENSES/ MONTHLY NET PROFIT/ MONTHLY JANUARY FEBRUARY MARCH APRL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER 2000 4000 3000 6000 2000 1900 2500 2000 2100 7500 8000 9500 15,780.00 31,560.00 23,670.00 47,340.00 15,780.00 14,991.00 19,725.00 15,780.00 16,569.00 59,175.00 63,120.00 74,955.00 14700 14700 14200 14700 14700 14700 14700 14700 14700 14700 14700 14700 1,080.00 16,860.00 9,470.00 32,640.00 1,080.00 291.00 5,025.00 1,080.00 1,869.00 44,475.00 48,420.00 60,255.00 PROJECTED TOTALS 2017 50,500 $398,445 $175,900 $222,545 THE BEST EVER LEMON SUGAR COOKIE COMPANY PROPOSED BUDGET CASH ON HAND BANK LOAN (10 YEAR LOAN @ 6%) SALES REVENUE INTEREST INCOME INVESTMENT INCOME OTHER INCOME TOTAL INCOME January February March $5,000.00 $50,000.00 $15,780 $31,560 $23,670 $25 $25 $25 $0 $0 $0 $0 $0 $0 $15,805 $31,585 $23,695 7500 7500 7500 1500 1500 1500 1000 2000 1500 400 400 400 400 400 400 1000 1000 1000 2200 2200 2200 700 700 700 $14,700 $15,700 $15,200 $1,105 $15,885 $8,495 FIXED EXPENSES/MONTHLY WAGES RENT UTILITIES MARKETING/WEB OFFICE SUPPLIES INSURANCE EQUIPMENT DEPRCIATION BUSINESS LOAN REPAYMENT TOTAL EXPENSES CASH BALANCE (EXPENSES-INCOME) April May June July August September October November December $47,340 $15,780 $14,991 $19,725 $15,780 $16,569 $59,175 $63,120 $74,955 $25 $25 $25 $25 $25 $25 $25 $25 $25 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $47,365 $15,805 $15,016 $19,750 $15,805 $16,594 $59,200 $63,145 $74,980 7500 7500 7500 7500 7500 7500 7500 7500 7500 1500 1500 1500 1500 1500 1500 1500 1500 1500 3000 1000 950 1250 1000 1050 3750 4000 4750 400 400 400 400 400 400 400 400 400 400 400 400 400 400 400 400 400 400 1000 1000 1000 1000 1000 1000 1000 1000 1000 2200 2200 2200 2200 2200 2200 2200 2200 2200 700 700 700 700 700 700 700 700 700 $16,700 $14,700 $14,650 $14,950 $14,700 $14,750 $17,450 $17,700 $18,450 $30,665 $1,105 $366 $4,800 $1,105 $1,844 $41,750 $45,445 $56,530 January Cash Sales February March Quarter 1997 1631 1766 April 6123