I m confused in milestone 3 about cash budget and budgeted balance sheet plz i really need your help because milestone 1 and milestone 2 is really correct and i got 100% points but i need balance shhet and cash budget correct answer before saturday night 11 pm is my due.

ACCT552 Course Project (Master Budget Preparation) You have been hired by the McClosky Corporation and they manufacture industrial dye. The company is preparing its 20x9 master budget and has presented you with the following information: A. The projected December 31, 20X8, balance sheet for the company is as follows: Assets Cash $ 6,080 Accounts Receivable 29,500 Raw Materials Inventory 1,000 Finished Goods Inventory 3,200 Prepaid Insurance 1,800 Building $ 350,000 Accum Depreciation (25,000) 325,000 Total Assets $_366.580 Liabilities and Equity Notes Payable Accounts Payable Dividends Payable Total Liabilities $ 25,000 2,650 12,000 $ 39,650 Common Stock $ 200,000 Paid-In Capital 40,000 Retained Earnings 86,930 326,930 Total Liabilities and Stockholders' Equity $ 366.580 Other Information that is being provided to you: B. The Accounts Receivable balance at 12/31/20X8 represents the balances of November and December credit sales. Sales were $90,000 and $85,000 respectively. C. Estimated sales in gallons of dye for January through May 2009 are as follows: January 9,000 February 11,000 March 16,000 April 14,000 May 13,000 June 12,000 Each gallon of dye sells for $ 15 D. The collection pattern for accounts receivable is as follows: 70 percent in the month of sale, 20 percent in the first month after the sale, and 10 percent in the second month after the sale. McClosky does not provide cash discounts and they are not expecting any bad debts. E. Each gallon of dye has the following standard quantities and costs for direct material and direct labor: 1.4 gallons of direct material (some evaporation takes place during processing) X $.90 per gallon $ 1.26 0.5 direct labor X $ 8 per hour 4.00 F. Variable overhead is applied to the product on a machine-hour basis. Processing one gallon of dye takes five hours of machine time. The variable overhead is $0.08 per machine hour. Variable overhead consists of utility costs. Total annual fixed overhead is $150,000; it is applied at $ 1 per gallon based on expected annual capacity of 150,000 gallons. Fixed overhead per year is made up of the following costs: Salaries $ 110,000 Utilities 15,000 Insurance 1,800 Depreciation-factory 23,200 Fixed overhead is incurred evenly throughout the year. G. There is no beginning Work-in-Process Inventory. All work is completed in the period in which it is started. Raw Material Inventory at the beginning of the year consists of 1,100 gallons of direct material at a standard cost of $.90 per gallon. There are 500 gallons of dye in Finished Goods Inventory at the beginning of the year carried at a standard cost of $6.28 per gallon; direct material, $.98, direct labor, $4.00; variable overhead $.30; fixed overhead , $1,00 H. Accounts Payable relates to raw material and is paid 60 percent in the month of purchase and 40 percent in the month after purchase. No discounts are received for prompt payment. 1. The dividend will be paid in January 20X9. J. A new piece of equipment will be purchased in March 20x9 and the cost is $12,000. Payment of 80 percent will be made in March and 20 percent in April. The equipment has a useful life of three years and will be placed in service on March 1. K. The note payable has a 12 percent interest rate; interest is paid at the end of each month. The principle of the note is repaid as cash is available to do So. L. The McClosky management team wishes to maintain a minimum cash balance of $5,500. Investments and borrowing are made in $100 amounts. (Even $100 amounts). Interest on any borrowings are expected to be 12 percent per year, and investments will earn 4 percent per year. M. The ending finished goods inventory should include 5 percent of next month's sales. This will not be true at the beginning of 20x9 due to a miscalculation in sales for the month of December. The ending inventory of raw materials should be 5 percent of next month's needs. N. Selling and administration costs per month are as follows: salaries $25,000; rent, $7,000 and utilities, $800. These costs are paid in cash as they are incurred. O. The company's tax rate is 20 percent. Please note: You will be preparing a master budget for the first quarter and pro forma financial statements as of the end of the first quarter of 20x9 and the supporting schedules listed below: Requirements: Milestone 1: Please prepare the following budgets: A. Sales Budget B. Production Budget C. Purchases Budget Please submit Milestone 1 at the end of Week 6. Milestone 2: Please prepare the following budgets: D. Labor Budget E. Variable Overhead Budget F. Fixed Overhead Budget G. Budgeted Cost of Goods Manufactured H. Budgeted Income Statement Please submit Milestone 2 at the end of Week 7. Milestone 3: I. Budgeted Balance Sheet J. Cash Budget K. Budget Presentation and please address the following questions: (1) The sales manager would like to increase the sales price by 10 next quarter, what will be the projected revenues be for the 2nd quarter. (2) The production manager would like to purchase new equipment for next quarter due to the fact that their competitor has purchased equipment which cost $50,000. Will the company be able to make the purchase or will you need more information? (3) The CEO feels that the cash budget is not necessary, please explain to the CEO why cash budgeting is important to the organization. (4) Please explain the to the management team how a competitor's actions can affect business planning. Please submit Milestone 3 at the end of Week 8. Sales Budget Particulars January February March April Estimated Sales (a) 9,000 11,000 16,000 Sales Price per dye (b) $ 15 $ 15 $ 15 S Total Estimated Sales (c) = (a) * (b) $ 135,000 $ 165,000 $ 240,000 $ Collection from current months sale (d) = C* 70% $ 94,500 $ 115,500 $ 168,000 $ Collection from first month after the sale (20%) (e) $ 17,000 $ 27,000 $ 33,000 $ Collection from second month after the sale (10%) (f) $ 9,000 $ 8,500 $ 13,500 $ Budgeted Collection for the month (g) = (d) + (e) + (f) $ 120,500 $ 151,000 $ 214,500 $ May June 14,000 13,000 15 $ 15 $ 210,000 $ 195,000 $ 147,000 $ 136,500 $ 48,000 $ 42,000 $ 16,500 $ 24,000 $ 211,500 $ 202,500 $ 12,000 15 180,000 126,000 39,000 21,000 186,000 May 14,000 700 Particulars Sales Quantity (Gallons) (a) Beginning Finished Good Inventory (Gallons) (b) Ending Finished Good Inventory (Gallons) (c) Budgeted Production (Gallons) (d) = (a) + (c) - (b) Standard Cost per Gallon (e) Purchase Budget (Dollars) (f) = (d) * (e) Production Budget January February March April 9,000 11,000 16,000 500 550 800 550 800 700 9,050 11,250 15,900 $ 6.28 $ 6.28 $ 6.28 $ $ 56,834 $ 70,650 $ 99,852 $ June 13,000 650 600 650 12,000 600 600 C 12,000 6.28 75,360 13,950 6.28 $ 87,606 $ 12,950 6.28 $ 81,326 $ Particulars Production during the month (Gallons) (as per req 2) (a) Direct materials needed per gallon of production (Given) (b) Total raw materials needed (Gallons) (c) = (a) * (b) Beginning inventory (d) Ending inventory (e) Budgeted raw material purchase (Gallons) (f) = (c) + (e) - (d) Raw material price per gallon (8) Budgeted Purchase (Dollars) (h) = (f) * (g) Payment for the month of purchase (i) = (h) * 60% Payment for previous month of purchase (i) = (h) * 40% Budgeted Payment for Purchase (k) = (i) + (i) Purchase Budget January February March April May June 9,050 11,250 15,900 13,950 12,950 12,000 1.4 1.4 1.4 1.4 1.4 1.4 12670 15750 22260 19530 18130 16800 1,100 787.5 1113 976.5 906.5 840 787.5 1113 976.5 906.5 840 840 12357.5 16075.5 22123.5 19460 18063.5 16800 $ 0.90 $ 0.90$ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 11,121.75 $ 14,467.95 $ 19,911.15 $ 17,514.00 $ 16,257.15 $ 15,120.00 $ 6,673.05 $ 8,680.77 $ 11,946.69 $ 10,508.40 9,754.29 $ 9,072.00 $ 2,650.00 $ 4,448.70 $ 5,787.18 $ 7,964.46 $ 7,005.60 $ 6,502.86 $ 9,323.05 $ 13,129.47 $ 17,733.87 $ 18,472.86 $ 16,759.89 $ 15,574.86 Payment of Accounts Payable (60%, 40%) January February March December 2,650 January 6,673 4,449 February 8,681 5,787 March 11,947 Total $ 9,323 $ 14,511 $ 17,965 $ Accounts Payable Ending Balance: $ 2,650 + $ 45,891 - $ 41,799 = Total 2,650 11,122 14,468 11,947 41,799 $ 6,742 March Direct Labor Budget January February Production 9,050 11,250 DLH per unit X 0.5 X 0.5 Total DLHS 4,525 5,625 DL Rate X $ 8 X$ 8 DL Cost $ 36,200 $ 45,000 $ 15,900 X0.5 7,950 X$ 8 63,600 $ Total 36,200 X 0.5 18,100 X $ 8 144,800 March Variable Overhead Budget January February Production 9,050 11,250 MH per unit X5 X5 Total MHs 45,250 56,250 VOH Rate X 0.08 X 0.08 VOH Cost $ 3,620 $ 4,500 $ 15,900 X5 79,500 X 0.08 6,360 $ Total 36,200 X5 181,000 X 0.08 14,480 March Fixed Overhead Budget January February Salaries $ 12,500 $ 12,500 $ Utilities 1,250 1,250 Insurance 150 150 Depreciation 1,933 1,933 FOH Cost $ 15,833 $ 15,833 $ 12,500 $ 1,250 $ 150 $ 2,266 $ 16,166 $ Total 37,500 3,750 450 6,133 47,833 Other Payments, Collections, and Cost Adjustments January February March Dividends $ 12,000 Equipment $ Interest Rec Interest Exp. $ 250 119 $ 9,600.00 $ S Total 12,000 Cash Payment 9,600 Cash Payment 95 $ 28,400 X 4% X1/12 Note Payable: $25,000 X 12% X1/12 Note Payable: ($25,000-$13,100) X.12 X 1/12 98,400 (Selling and Administrative Expenses paid in cash) Sell & Admin 32,800 32,800 32,800 Mc Closky Corporation Budgeted Cost of Goods Manufactured First Quarter of 20X9 Mc Closky Corporation Budgeted Income Statement First Quarter of 20x9 $ $ 540,000 $ 1,000 45,501 46,501 892 3,200 252,722 255,922 3,768 Beginning Work in Process Raw Material Used: Beginning Raw Material Purchases Available for Use Ending Inventory Cost of raw material used Direct Labor Variable Overhead Fixed Overhead Total mfg. costs in process Ending work in process Cost of goods manufactured $ 45,609 144,800 14,480 47,833 Sales Cost of Goods Sold Beginning Inventory-FG Cost of Goods Manufactured Cost of Goods Available for Sale Ending Inv-Finished Goods Gross Margin Selling and Administrative Expenses Operating Income Other Income and Expenses: Interest Expense Interest Revenue Income before taxes Income taxes ($187,462 X 20%) Net Income 252,154 287,846 98,400 189,446 $ 252,722 252,722 $ (369) 95 (274) $ 252,722 $ 187,462 37,492 149,970 $ McClosky Corporation Budgeted Balance Sheet 1st Quarter 20X19 New Eq. Cost $ 12,000 Dep 3 years $ 4,000 Depreciation Annual Monthly 1st Qtr $ 23,200 $ 1,933 $ 5,800 $ 4,000 $ 333 $ 333 $ 6,133 Assets Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Prepaid Insurance Long Term Investments Building & Equipment Accum Depreciation $ Total Assets $5,549 $88,500 $879 $4,690 $1,350 $110,600 $362,000 (31,133) $330,867 $542,435 greater than 31,000 but less than 32,000 Liabilities and Equity Accounts Payable Notes Payable Equipment Income Tax Payable Total Liabilities $7,964 $2,400 $40,028 $50,392 Common Stock Paid-In Capital Retained Earnings $200,000 $40,000 $252,043 $492,043 $250,000 but less than $255,000. Total Liabilities and Equity $542,435 McClosky Corporation Cash Budget 1st Quarter 20x19 January February March Qtr 1 Beginning Cash Balance $ 6,080 $ 5,500 $ 5,538 $ 6,080 Add receipts $ Collections from Customers $ 120,500 $ 151,000 $214,500 $ 486,000 Cash Available $ 126,580 $156,500 $ 220,038 $ 492,080 Cash Disbursements Material Purchases $ 9,323 $ 13,129 $ 17,734 $ 40,186 Direct Labor $ 36,200 $ 45,000 $ 63,600 $ 144,800 Variable Overhead $ 3,620 $ 4,500 $ 6,360 $ 14,480 Fixed Overhead $ 10,417 $ 10,417 $ 10,417 $ 31,251 Selling & Admin $ 32,800 $ 32,800 $ 32,800 $ 98,400 Equipment Purchases $ $ $ 9,600 $ 9,600 Total Cash Disbursements $ 92,360 $ 105,846 $140,511 $ 338,717 Cash Excess (Deficiency) $ 34,220 $ 50,653 $ 79,527 $ 153,363 Financing Repayments (16,470) $ (8,530) $ $ (25,000) Investment $ (36,500) $ (74,100) $(110,600) Dividends $ (12,000) $ $ $ (12,000) Payment of Interest $ (250) $ (85) $ (335) Borrowing $ $ $ $ Receipt of Interest $ $ $ 122 $ 122 Total Financing $ (28,720) $ (45,115) $ (73,978) $ (147,814) Ending Balance $ 5,500 $ 5,538 $ 5,549 $ 5,549