I NEED HELP FOR THE BUDGETED INCOME STATEMENT AND BUDGETED BALANCE SHEET PLEASE. THANK YOU
Input Data (all currency in USS) Yellow-use only cell references Blue-may type numbers here Budgeted Sales April (units) May (units) June (units) July (units) August (units) Expected 2,500 6,000 3,000 2,500 2,000 Little Annin Flagmakers Sales Budget (USS) April May 2,500 6,000 $120 $120 300,000 S 720,000 S Budgeted sales (units) Selling price per unit Total Sales June 3,000 $120 360,000 Quarter 11,500 $120 $ 1,380,000 S Selling Price/Unit $120.00 Little Annin Flagmakers Schedule of Expected Cash Collections (USS) April May June Quarter Cash Collection Pattern Month of sale Following month Uncollectible Accounts receivable Beginning balance $132,000 $132,000 40% 55% 5% April sales S 120,000 S 165,000 S 285.000 May sales S 288,000 S 396,000 S 684.000 Cash Payments for Materials Month of purchase Following month 40% 60% June sales S 144,000 S 144,000 Total Cash Collections $252,000 S 453,000 S 540,000 $1,245,000 Accounts Receivable as of June 30 S 198,000 Production Requirements Raw material per unit (lb.) Raw material cost per lb. Direct labor hours per unit Direct labor rate per hour Variable MOHD per direct labor hour Fixed MOHD per month Depreciation in fixed MOHD 5 $7.00 0.5 $40.00 $10.00 $57,950 $20,000 Little Annin Flagmakers Production Budget April May 2,500 6,000 1,200 600 3,700 6,600 410 1.200 3,290 5,400 August 2,000 Budgeted sales Add: Desired ending inventory Total needs Less: Beginning inventory Required Production Selling & Administrative (S&A) Costs Variable S&A cost per unit sold Fixed S&A cost per month Depreciation in fixed S&A cost Junc 3,000 500 3,500 600 2,900 Quarter 11,500 500 12,000 410 11,590 July 2.500 400 2.900 500 2,400 $1.25 $63,000 $10,000 Other Cash Outflows Cash dividends paid each month Equipment purchases May Equipment purchases June $15,000 $47,820 $154,600 16,450 Desired Ending Inventory Finished goods Raw materials Cash Little Annin Flagmakers Direct Materials Budget (USS) April May June 3,290 5,400 2,900 S 5 5 27,000 14,500 10,800 5,800 4,800 27,250 32,800 19,300 4,600 10.800 5,800 22,650 22.000 13.500 $7.00 $7.00 $7.00 158,550 S 154,000 S 94,500 Required production in units Raw materials per unit (lbs.) Production needs (lbs.) Add: Desired ending inventory Total needs Less: Beginning inventory Raw materials to be purchased Cost of raw materials Total Cost of Raw Materials Quarter 11,590 5 57,950 4.800 62.750 4.600 58.150 $7.00 407.050 20% 40% $30,000 Beginning Account Balances as of March 31 S S Check figure for April Cost of Raw Materials $158,550 Cash Accounts receivable Finished goods inventory Finished goods cost per unit Finished goods inventory (units) Raw materials inventory Raw materials (lb.) Accounts payable $37,745 $132.000 $30.750 $75.00 410 $32.200 4,600 $55,000 Little Annin Flagmakers Schedule of Expected Cash Disbursements for Material (US$) April May June Quarter Accounts payable Beginning balance $55,000 S55,000 April purchases S 63,420 S 95,130 $ 158,550 May purchases S 61,600 S 92,400 $ 154,000 Land Buildings and equipment Accumulated depreciation Common stock Retained carnings $520,000 $1,800,000 (S750,000) $500,000 $1,247,695 June purchases S 37,800 S 37,800 Materials $118,420 S 156,730 S 130.200 $405,350 Accounts Payable as of June 30 S 56,700 Units to be produced Direct labor hours per unit Total direct labor hours needed Direct labor cost per hour Total Direct Labor Cost Little Annin Flagmakers Direct Labor Budget (US$) April May 3,290 5,400 0.5 0.5 1,645 2,700 $40.00 $40.00 65,800 S 108,000 S June 2.900 0.5 1,450 $40.00 58,000 $ Quarter 11,590 0.5 5,795 $40.00 231,800 S Budgeted direct labor hours Variable MOHD rate Total variable MOHD Fixed MOHD expense Total MOHD expense Less: Depreciation Cash Disbursements for MOHD S S S S S S Little Annin Flagmakers Manufacturing Overhead Budget (USS) April May Junc Quarter 1,645 2,700 1,450 5,795 $10 $10 $10 $10 16,450 S 27,000 S 14,500 $ 57.950 57,950 S 57,950 S 57,950 $ 173.850 74,400 S 84,950 S 72,450 $ 231,800 (20,000) S (20,000) $ (20,000) $ (60,000) 54,400 S 64,950 S 52,450 $ 171,800 $52,450 Check Figure for June Cash Disbursements for MOHD $29.65 /direct labor hour MOHD rate Absorption cost per unit Direct materials Direct labor Manufacturing overhead Unit Product Cost Little Annin Flagmakers Unit Product Cost (USS) Quantity Cost 5 $7.00 0.50 $40.00 0.50 $29.65 Cost/unit $35.00 $20.00 $14.82 $69.82 Cost of Goods Sold (FIFO) Beginning finished goods inventory Add: Cost of goods manufactured Good available for sale Less: Ending finished goods inventory Cost of Good Sold Little Annin Flagmakers Cost of Goods Sold Budget (USD) Units Cost/unit Total Cost 410 $75.00 $ 30,750 11,500 $75.00 $ 862,500 $ 893,250 500 $69.82 $ 34,912 $ 858,338 April Budgeted sales in units Variable S&A per unit Total variable S&A Total fixed S&A Total S&A expense Less: Depreciation Cash Disbursements for S&A Little Annin Flagmakers Selling and Administrative Expense Budget (US$) May June Quarter 2,500 6,000 3,000 11,500 $1.25 $1.25 $1.25 $1.25 $ 3,125 $ 7,500 $ 3,750 $ 14,375 $ 63,000 $ 63,000 $ 63,000 $ 189,000 $ 66,125 70,500 $ 66,750 $ 203,375 $ 10,000 $ 10,000 $ 10,000 $ 30,000 $ 56,125 $ 60,500 $ 56,750 S 173,375 $60,500 Check Figure for May Cash Disbursements for S&A Little Annin Flagmakers Cash Budget (USS) April May June Quarter $ 37,745 $ 30,000 $ 30,000 $ 37,745 $ Beginning Cash Balance Add: Receipts Cash collections Total Cash Available $252,000 $ 289,745 $ 453,000 483,000 540,000 $1,245,000 570,000 $ 1,282,745 $ $ $ $ Less disbursements Direct materials Direct labor Manufacturing overhead Selling and administrative Dividends Equipment purchases Total Disbursements $118,420 $ 65,800 $ 54,400 $ $56,125.00 15,000 $ $ 156,730 $ 108,000 $ 64,950 $ $60,500.00 15,000 47,820 453,000 $ 130,200 58,000 52,450 $56,750.00 15,000 154,600 467,000 $405,350 231,800 171,800 $173,375.00 45,000 202,420 $1,229,745 $309,745 $ Excess (deficiency) of cash available S (20,000) $ 30,000 $ 103,000 53,000 $50,000 $ Financing Borrowing Repayments Interest Total Financing $50,000 $50,000 2,000 $102,000 $50,000 2,000 $ $52,000 $ $50,000 $ Ending Cash Balance 51,000 $ 1,000 $ 30,000 $ 30,000 $ $30,000 Check Figure for April Ending Cash Balance Little Annin Flagmakers Budgeted Income Statement (US$) Quarter Ending June 30 Net sales Less: Cost of goods sold Gross margin Less: S&A expenses Net operating income Less: Interest expense Net income $ 1,311,000 $ 858,338 $ 452,662 $ 173,375 $ 279,287 $ (2,000) $ 281,287 $243,125 Check Figure for Net Income Computation of Net Sales Sales Less uncollectible amounts Net Sales $ 1,380,000 $ 69,000 $ 1,311,000 Complete Sales Budget through Budgeted Income Statement per Case Study requirements, Budgeted Balance Sheet optional for extra credit Extra Credit: Complete the Budgeted Balance Sheet Little Annin Flagmakers Budgeted Balance Sheet (US$) Ending March 31 Ending June 30 Current assets Cash Accounts receivable Raw materials inventory Finished goods inventory Plant and equipment Land Buildings and equipment Accumulated depreciation Total Assets Liabilities Accounts payable Stockholder's equity Common stock Retained earnings Equity Input Data (all currency in USS) Yellow-use only cell references Blue-may type numbers here Budgeted Sales April (units) May (units) June (units) July (units) August (units) Expected 2,500 6,000 3,000 2,500 2,000 Little Annin Flagmakers Sales Budget (USS) April May 2,500 6,000 $120 $120 300,000 S 720,000 S Budgeted sales (units) Selling price per unit Total Sales June 3,000 $120 360,000 Quarter 11,500 $120 $ 1,380,000 S Selling Price/Unit $120.00 Little Annin Flagmakers Schedule of Expected Cash Collections (USS) April May June Quarter Cash Collection Pattern Month of sale Following month Uncollectible Accounts receivable Beginning balance $132,000 $132,000 40% 55% 5% April sales S 120,000 S 165,000 S 285.000 May sales S 288,000 S 396,000 S 684.000 Cash Payments for Materials Month of purchase Following month 40% 60% June sales S 144,000 S 144,000 Total Cash Collections $252,000 S 453,000 S 540,000 $1,245,000 Accounts Receivable as of June 30 S 198,000 Production Requirements Raw material per unit (lb.) Raw material cost per lb. Direct labor hours per unit Direct labor rate per hour Variable MOHD per direct labor hour Fixed MOHD per month Depreciation in fixed MOHD 5 $7.00 0.5 $40.00 $10.00 $57,950 $20,000 Little Annin Flagmakers Production Budget April May 2,500 6,000 1,200 600 3,700 6,600 410 1.200 3,290 5,400 August 2,000 Budgeted sales Add: Desired ending inventory Total needs Less: Beginning inventory Required Production Selling & Administrative (S&A) Costs Variable S&A cost per unit sold Fixed S&A cost per month Depreciation in fixed S&A cost Junc 3,000 500 3,500 600 2,900 Quarter 11,500 500 12,000 410 11,590 July 2.500 400 2.900 500 2,400 $1.25 $63,000 $10,000 Other Cash Outflows Cash dividends paid each month Equipment purchases May Equipment purchases June $15,000 $47,820 $154,600 16,450 Desired Ending Inventory Finished goods Raw materials Cash Little Annin Flagmakers Direct Materials Budget (USS) April May June 3,290 5,400 2,900 S 5 5 27,000 14,500 10,800 5,800 4,800 27,250 32,800 19,300 4,600 10.800 5,800 22,650 22.000 13.500 $7.00 $7.00 $7.00 158,550 S 154,000 S 94,500 Required production in units Raw materials per unit (lbs.) Production needs (lbs.) Add: Desired ending inventory Total needs Less: Beginning inventory Raw materials to be purchased Cost of raw materials Total Cost of Raw Materials Quarter 11,590 5 57,950 4.800 62.750 4.600 58.150 $7.00 407.050 20% 40% $30,000 Beginning Account Balances as of March 31 S S Check figure for April Cost of Raw Materials $158,550 Cash Accounts receivable Finished goods inventory Finished goods cost per unit Finished goods inventory (units) Raw materials inventory Raw materials (lb.) Accounts payable $37,745 $132.000 $30.750 $75.00 410 $32.200 4,600 $55,000 Little Annin Flagmakers Schedule of Expected Cash Disbursements for Material (US$) April May June Quarter Accounts payable Beginning balance $55,000 S55,000 April purchases S 63,420 S 95,130 $ 158,550 May purchases S 61,600 S 92,400 $ 154,000 Land Buildings and equipment Accumulated depreciation Common stock Retained carnings $520,000 $1,800,000 (S750,000) $500,000 $1,247,695 June purchases S 37,800 S 37,800 Materials $118,420 S 156,730 S 130.200 $405,350 Accounts Payable as of June 30 S 56,700 Units to be produced Direct labor hours per unit Total direct labor hours needed Direct labor cost per hour Total Direct Labor Cost Little Annin Flagmakers Direct Labor Budget (US$) April May 3,290 5,400 0.5 0.5 1,645 2,700 $40.00 $40.00 65,800 S 108,000 S June 2.900 0.5 1,450 $40.00 58,000 $ Quarter 11,590 0.5 5,795 $40.00 231,800 S Budgeted direct labor hours Variable MOHD rate Total variable MOHD Fixed MOHD expense Total MOHD expense Less: Depreciation Cash Disbursements for MOHD S S S S S S Little Annin Flagmakers Manufacturing Overhead Budget (USS) April May Junc Quarter 1,645 2,700 1,450 5,795 $10 $10 $10 $10 16,450 S 27,000 S 14,500 $ 57.950 57,950 S 57,950 S 57,950 $ 173.850 74,400 S 84,950 S 72,450 $ 231,800 (20,000) S (20,000) $ (20,000) $ (60,000) 54,400 S 64,950 S 52,450 $ 171,800 $52,450 Check Figure for June Cash Disbursements for MOHD $29.65 /direct labor hour MOHD rate Absorption cost per unit Direct materials Direct labor Manufacturing overhead Unit Product Cost Little Annin Flagmakers Unit Product Cost (USS) Quantity Cost 5 $7.00 0.50 $40.00 0.50 $29.65 Cost/unit $35.00 $20.00 $14.82 $69.82 Cost of Goods Sold (FIFO) Beginning finished goods inventory Add: Cost of goods manufactured Good available for sale Less: Ending finished goods inventory Cost of Good Sold Little Annin Flagmakers Cost of Goods Sold Budget (USD) Units Cost/unit Total Cost 410 $75.00 $ 30,750 11,500 $75.00 $ 862,500 $ 893,250 500 $69.82 $ 34,912 $ 858,338 April Budgeted sales in units Variable S&A per unit Total variable S&A Total fixed S&A Total S&A expense Less: Depreciation Cash Disbursements for S&A Little Annin Flagmakers Selling and Administrative Expense Budget (US$) May June Quarter 2,500 6,000 3,000 11,500 $1.25 $1.25 $1.25 $1.25 $ 3,125 $ 7,500 $ 3,750 $ 14,375 $ 63,000 $ 63,000 $ 63,000 $ 189,000 $ 66,125 70,500 $ 66,750 $ 203,375 $ 10,000 $ 10,000 $ 10,000 $ 30,000 $ 56,125 $ 60,500 $ 56,750 S 173,375 $60,500 Check Figure for May Cash Disbursements for S&A Little Annin Flagmakers Cash Budget (USS) April May June Quarter $ 37,745 $ 30,000 $ 30,000 $ 37,745 $ Beginning Cash Balance Add: Receipts Cash collections Total Cash Available $252,000 $ 289,745 $ 453,000 483,000 540,000 $1,245,000 570,000 $ 1,282,745 $ $ $ $ Less disbursements Direct materials Direct labor Manufacturing overhead Selling and administrative Dividends Equipment purchases Total Disbursements $118,420 $ 65,800 $ 54,400 $ $56,125.00 15,000 $ $ 156,730 $ 108,000 $ 64,950 $ $60,500.00 15,000 47,820 453,000 $ 130,200 58,000 52,450 $56,750.00 15,000 154,600 467,000 $405,350 231,800 171,800 $173,375.00 45,000 202,420 $1,229,745 $309,745 $ Excess (deficiency) of cash available S (20,000) $ 30,000 $ 103,000 53,000 $50,000 $ Financing Borrowing Repayments Interest Total Financing $50,000 $50,000 2,000 $102,000 $50,000 2,000 $ $52,000 $ $50,000 $ Ending Cash Balance 51,000 $ 1,000 $ 30,000 $ 30,000 $ $30,000 Check Figure for April Ending Cash Balance Little Annin Flagmakers Budgeted Income Statement (US$) Quarter Ending June 30 Net sales Less: Cost of goods sold Gross margin Less: S&A expenses Net operating income Less: Interest expense Net income $ 1,311,000 $ 858,338 $ 452,662 $ 173,375 $ 279,287 $ (2,000) $ 281,287 $243,125 Check Figure for Net Income Computation of Net Sales Sales Less uncollectible amounts Net Sales $ 1,380,000 $ 69,000 $ 1,311,000 Complete Sales Budget through Budgeted Income Statement per Case Study requirements, Budgeted Balance Sheet optional for extra credit Extra Credit: Complete the Budgeted Balance Sheet Little Annin Flagmakers Budgeted Balance Sheet (US$) Ending March 31 Ending June 30 Current assets Cash Accounts receivable Raw materials inventory Finished goods inventory Plant and equipment Land Buildings and equipment Accumulated depreciation Total Assets Liabilities Accounts payable Stockholder's equity Common stock Retained earnings Equity
