I need help with the Balance Sheet and Statement of Cash Flows

Comprehensive Budget Project 2a Hillary's Handbags Manufacturing Co. Hillary's Handbags Manufacturing Co. produces nylon handbags and larger bags to sell to tourists visiting the Western United States and other tourist areas. The design of the two products is unique and represents a breakthrough in the industry. The company is completing its ninth year of operations and is preparing to build its master budget for the coming year, 2021. The budget will detail each quarter's activity and the activity for the year in total. The master budget will be based on the following information: A. Projected 2021 unit sales for each quarter and for the first two quarters of 2022 are as follows: Year 2021 | 2021 2022 2022 Produce Handbags Larger Handbags Larger Handbags Handbags First Quarter 10,395 9,240 11,550 10,395 Second Quarter 20,790 13,860 18,480 15,015 Third Quarter 16,170 6,930 Fourth Quarter 13,6291 2,310 B. The selling price for the above quarters is projected at $75.00 per smaller bags and $195.00 per larger bag. Hillary's carefully screens its customers and expects no uncollectable accounts. For budget purposes, each quarter has the following collection pattern: 50% of the total sales will be collected in the quarter of sale, 50% of the total will be collected in the quarter following the sale. D. Hillary's ended the current year (2019) with a finished goods inventory of 12,705 smaller bags and 6,930 larger bags. Because of a discouraging economic forecast, it plans to budget an ending inventory of 20% of the next quarter's unit sales. The company's ending Work-in-Process inventory is expected to be $127,050 (this number will only be used in the Cost of Goods Manufactured Statement and Balance Sheet). E. The following are the budgeted standard costs to make 1 finished product. Handbags | Larger Handbags Direct Material Nylon .330 sq. yd. @$10.396 yd. | 1.375 sq. yd. @$10.396 yd. Lining .110 sq. yd. @$2.772 yd. .55 sq. yd. @$2.772 yd. Direct Labor: Cutting 1.110 hr. @$20.79 hr. 1.165 hr. @$20.79 hr. Sewing .275 hr. @$34.65 hr. .44 hr. @$34.65 hr. Overhead: Variable Per Travel Bag @$3.58 Per larger bag @$3.58 Fixed Per travel @$2.356 Per larger bag @$2.356 bag F. The fixed overhead rate is based on a four year average and will be used only to cost the projected finished goods inventory on the Income Statement and Balance Sheet. G. Hillary's will start the budget year with 3,609.5 sq. yards of nylon and 4,344.5 Sq. yards of lining. For budgeting purposes, the plan is to always have an ending inventory of nylon equal to 30% of the next quarter's needs and lining equal to 25% of next quarter's needs. H. Hillary's buys raw material on account and plans to pay for 25% in the quarter of purchase and the remaining 75% in the next quarter. The accounts payable account consists only of the unpaid portion of the purchase of raw materials. 1. Wages and salaries are paid on the last day of the month. J. Fixed overhead is projected as follows and is paid for in the quarter incurred (except for depreciation). Depreciation $20,790 per qtr. Property tax $4,274 per qtr. Supervisory Salary $25,988 per qtr. Insurance $1,444 per qtr. K. Variable overhead is budgeted as follows and is paid for in the quarter incurred. It is based on total units produced (small backpacks + larger backpacks) Indirect Materials $0.4851 per unit produced Indirect Labor $1.9173 per unit produced Maintenance $0.3696 per unit produced Utilities $0.8085 per unit produced L. Marketing expenses are as follows and are paid for in the quarter incurred. Advertising $25,988 per qtr. Commissions 5.0% of dollar sales Salary $31,763 per qtr. M. Fixed administrative expenses are as follows and are paid for in the quarter incurred (except for depreciation). Depreciation - $1,444 per qtr. Officers' Salaries - $25,988 per qtr Office Salaries - $18,625 per qtr Office Rent - $2,490.47 per atr Miscellaneous - $1,804.69 per atr N. The Balance Sheet (unclassified) for the year just ending (2019) is as follows: Assets: Cash $ 308,000 Accounts Receivable 407,000 Finished Goods Inventory-smaller 870,232 Finished Goods Inventory-larger 876,480 Work-in-process Inventory 235,840 Nylon Inventory 123,750 Lining Inventory 39,600 Property, plant, and equip. (net) $ 3,520,000 Total Assets $ 6,380,902 Liabilities: Accounts Payable $209,000 Income Tax Payable $ 1,210,000 Interest Payable Dividends Payable Short-term Debt Stockholders Equity: Common Stock $ 3,300,000 Retained Earnings $ 1,661,902 Total liabilities and Stockholder's Equity $ 6,380,902 0. In January Hillary's expects to declare a $240,000 dividend. It will be paid 12 in the second quarter and 2 in the fourth quarter. P. Hillary's also plans to purchase and pay for $125,000 of equipment during each quarter. Q. The income tax rate is 35% and is paid on April 15 of the next year. Required: Prepare the formal master budget schedules for each quarter of the coming year, 2020 and for the year in total. Prepare formal financial statements for the year only. The following components must be included: Part A Sales Budget: Smaller ourth First Second First Second 10,395 20,790 75 75 779,625 1,559,250 Third F 16,170 75 1,212,750 Total 13,629 60,984 Budgeted Sale in Units Budgeted Selling Price Total Sales Budget 11,550 18,480 75 1,022,175 4,573,800 866,250 1,386,000 Sales Budget: Larger First Budgeted Sale in Units Budgeted Selling Price Total Sales Budget First Second 9,240 13,860 195 195 1,801,800 2,702,700 Third 6,930 195 1,351,350 Fourth 2,310 195 450,450 Total 32,340 195 6,306,300 10,395 195 2,027,025 Second 15,015 195 2,927,925 Schedule of Cash Collection First 1,290,713 Credit Sale collected in Same Quarter Credit Sale collected in Next Quarter 50% 50% Second 2,130,975 2,130,975 Third 1,282,050 1,282,050 Fourth 736,312.50 736,312.50 Total 5,440,050 5,440,050 Production Budget Smaller First First Second 18,480 20% Budget Sale in Units Add: Desired Ending Inventory Sub-Total Less: Beginning Inventory Budgeted Production Second 10,395 20,790 4,158 3,234 14,553 24,024 -12,705 -4,148 1,848 19,876 Euth Third Fourth 16,170 13,629 2,725.50 2 ,310 18,896 15,939 -3,234 -2,726 15,662 13,213 Total 60,984 2,310 63,294 -12,705 50,589 11,550 3,696 15,246 -4,148 11,088 Production Budget Langer First Fourth First 20% Budget Sale in Units Add: Desired Ending Inventory Sub-Total Less: Beginning Inventory Budgeted Production Second 9,240 13,860 2,772 1,386 12,012 15,246 -6,930 -2,772 5,082 12,474 Third 6,930 462.00 7,392 -1,386 6,006 2,310 2,079 4,389 -462 3,927 Total 32,340 2,079 34,419 -6,930 27,489 Second 10,395 15,015 3,003 13,398 -2,772 10,626 First First Nylon Small Large 19 11,319 11,319 0.331 1.375 19,299 Raw Material Budget Bugeted Production Bugeted Production Nylon required per unit for Smaller Nylon required per unit for Larger Total Nylon required for Production Add: Desired Ending Inventory Total Needs Less: Beginning Inventory Bugeted Purchace in Units Cost per unit of Nylon Total Bugeted Purchase of Nylon Second 1,848 19,867 5,082 14,784 0.33 0.33 1.375 1.375 7,598 23,708 7,112 4,028 14,710 27,736 -3,610 7,112 11,100 20,623 10.396 10.396 115,399 214,299 Third 15,622 17,787 0.33 1.375 13,427 2,928 16,355 -4,028 12,327 10.396 128,148 Fourth Total 13,213 50,589 14,091 51,744 0.33 0.33 1.375 1.375 9,760 54,493 5,950 5,481 15.710 59,973 -2,928 -3,610 12,313 56,363 10.396 10.396 25,105 585,952 30% First First Lining Small Large 11,088 10,626 0.11 0.55 7,064 Raw Material Budget Bugeted Production Bugeted Production Lining required per unit for Smaller Lining required per unit for Larger Total Nylon required for Production Add: Desired Ending Inventory Total Needs - Less: Beginning Inventory Bugeted Purchace in Units Cost per unit of Lining Total Bugeted Purchase of Lining Second Third Fourth Total 1,848 19,867 15,622 13,213 50,589 5,082 12,474 6,006 3,927 27,489 0.11 0.11 0.11 0.11 0.11 0.55 0.55 0.55 0.55 0.55 2,998 9,046 5,026 3,613 20,684 2,261 1,257 903 1,766 1,766 5,260 10,302 5,929 5,379 22,450 -4,345 -2,261 -1,257 -903 -4,345 915 8,041 4,673 4,476 18,105 2.772 2.772 2.772 2.772 2.772 2,537 22,290 12,953 12,407 50,188 25% First Cutting Small Large 5,082 Direct Labor Budget Bugeted Production Bugeted Production Hours required for Smaller Hours required for Larger Total Hours required for Production Per hour rate Total Direct Labor Cost - Cutting Second 1,848 19,867 14,784 0.11 0.11 0.165 0.165 1,042 4,243 20.79 20.79 21,663 88212 Third 15,622 17,787 0.11 0.165 2,714 20.79 56424 Fourth Total 13,213 50,589 14,091 51,744 0.11 0.11 0.165 0.165 2,101 10,100 20.79 20.79 43680 209979 First Sewing Small Large Direct Labor Budget Bugeted Production Bugeted Production Hours required for Smaller - Hours required for Larger Total Hours required for Production Per hour rate Total Direct Labor Cost - Sewing Second 1,848 19,867 5,082 14,784 0.275 0.275 0.44 0.44 2,744 10,952 34.65 34.65 95080 379487 Third 15,622 17,787 0.275 0.44 6,950 34.65 240818 Fourth 13,213 14,091 0.275 0.44 5,362 34.65 185793 Total 50,589 51,744 0.275 0.44 26,007 34.65 901143 First Accounts Payable Schedule of Payment for Material Budgeted Purchased Cost Second Third Fourth 117937 236689141101 140413 Total 636139 Nylon+Lining - Payment in Same Quarter Payment in Next Quarter 25% 75% 29484 209000 59172 88452 35275 177517 35103 105826 159035 580795 105309 - Total Payment/Payable 238484 147625 212792 140929 739830 105309 First Second 24809 115777 Third Fourth 77571 61362 Total 279519 3.58*Units Produced Overhead Budget Variable Overheads - Fixed Overheads: Depreciation Property Tax Supervisor Salary 20,790 4,274 25,988 20,790 4,274 25,988 20,790 4,274 25,988 20,790 4,274 25,988 83,160 17,096 103,952 Insurance Total Fixed Overheads Total Overheads Less: Non Cash Overheads Dep Cash Dispursment for Overheads 1,444 52,496 77,305 -20,790 56,515 1,444 52,496 168,273 -20,790 147,483 1,444 52,496 130,067 -20,790 109,277 1,444 52,496 113,858 -20,790 9,068 5,776 209,984 489,503 -20,790 406,343 First Second 129,071 213,098 Third 128,205 Fourth Total 73,631 544,005 5% of Dollar Sale Marketing Budget Variable Marketing Expense Fixed Marketing Expense: Advertising Salaries Total Fixed Marketing Expense Toal Marketing Expense 25,988 31,763 57,751 186,822 25,988 31,763 57,751 270,849 25,988 31,763 57,751 185,956 25,988 31,763 57,751 131,382 103,952 127,052 231,004 775,009 First Second Third Fourth Total s General & Admin Budget - Fixed Admin Expense 3 Depreciation Officeer's Salaries Office Salaries 1 Office Rent e Miscellaneous Total Fixed Admin Expense Less: Non Cash Overheads-Dep 5 Cash Dibursement for Overheads 1,444.00 25,988.00 18.625.00 2,490.47 1,804.69 50,352.16 -1,444.00 48,908.16 1,444.00 25,988.00 18.625.00 2,490.47 1,804.69 50,352.16 -1,444.00 48,908.16 1,444.00 25,988.00 18,625.00 2,490.47 1,804.69 50,352.16 -1,444.00 48,908.16 1,444.00 5,776.00 25,988.00 103,952.00 18,625.00 74,500.00 2,490.47 9,961.88 1,804.69 7,218.76 50,352.16 201,408.64 -1,444.00 -5,776.00 48,908.16 195,632.64 -Cash Budget 3 Beginning Balance Add: Collection from Customer First Second 308000 1254893 1697713 3421688 Third 2227239 3413025 Fourth Total 4 717527 308000 2018363 10550788 2005713 4676581 5640264 6735889 10858788 1 Total Cash Available Cash Disbrusment for: Direct Material Direct Labor - Overheads - Marketing Expense - Admin Expense 3 Dividend Purchase of Equipment Income Tax Payable 238484 95089 56515 186822 48908 147625 379477 147483 270849 48908 120000 125000 1210000 212792 240805 109477 185956 48908 140929 185776 93068 131382 48908 120000 125000 739830 901147 406343 775009 48908 240000 500000 1210000 125000 125000 Total Cash Disbursment Ending Cash Balance 750819 1254893 2449341 2227239 922738 4717527 845064 5890825 4967962 5890825 Hillarys Handbags Manufacturing Co Balance Sheet Assets: Cash: Accounts Receivable: Finshed Goods Inventory -smaller: Finshed Goods Inventory -larger: Work in Process Inventory: Nylon Inventory: Lining Inventory: PP&E: Total Assets: 10674764 Liabilities: Accounts Payable: Income Tax Payable: Interest Payable: Dividends Payable: Short-term Debt: Stockholders Equity: Common Stock: Retained Earnings: Total Liabilities and Equity: Hillarys Handbags Manufacturing Co Statement of Cash Flows Cash Flows from Operating Activities: Net Income: 3798335 Net cash provided by operating activities: Depreciation: Increase in Current Assets: Accounts Receivable: Inventory: Prepaid Expenses: Increase in Current Liabilities: Accounts Payable: Accure Expenses and Unearned Revenues: Net Cash Provided by Operating Activities: 6111490 Comprehensive Budget Project 2a Hillary's Handbags Manufacturing Co. Hillary's Handbags Manufacturing Co. produces nylon handbags and larger bags to sell to tourists visiting the Western United States and other tourist areas. The design of the two products is unique and represents a breakthrough in the industry. The company is completing its ninth year of operations and is preparing to build its master budget for the coming year, 2021. The budget will detail each quarter's activity and the activity for the year in total. The master budget will be based on the following information: A. Projected 2021 unit sales for each quarter and for the first two quarters of 2022 are as follows: Year 2021 | 2021 2022 2022 Produce Handbags Larger Handbags Larger Handbags Handbags First Quarter 10,395 9,240 11,550 10,395 Second Quarter 20,790 13,860 18,480 15,015 Third Quarter 16,170 6,930 Fourth Quarter 13,6291 2,310 B. The selling price for the above quarters is projected at $75.00 per smaller bags and $195.00 per larger bag. Hillary's carefully screens its customers and expects no uncollectable accounts. For budget purposes, each quarter has the following collection pattern: 50% of the total sales will be collected in the quarter of sale, 50% of the total will be collected in the quarter following the sale. D. Hillary's ended the current year (2019) with a finished goods inventory of 12,705 smaller bags and 6,930 larger bags. Because of a discouraging economic forecast, it plans to budget an ending inventory of 20% of the next quarter's unit sales. The company's ending Work-in-Process inventory is expected to be $127,050 (this number will only be used in the Cost of Goods Manufactured Statement and Balance Sheet). E. The following are the budgeted standard costs to make 1 finished product. Handbags | Larger Handbags Direct Material Nylon .330 sq. yd. @$10.396 yd. | 1.375 sq. yd. @$10.396 yd. Lining .110 sq. yd. @$2.772 yd. .55 sq. yd. @$2.772 yd. Direct Labor: Cutting 1.110 hr. @$20.79 hr. 1.165 hr. @$20.79 hr. Sewing .275 hr. @$34.65 hr. .44 hr. @$34.65 hr. Overhead: Variable Per Travel Bag @$3.58 Per larger bag @$3.58 Fixed Per travel @$2.356 Per larger bag @$2.356 bag F. The fixed overhead rate is based on a four year average and will be used only to cost the projected finished goods inventory on the Income Statement and Balance Sheet. G. Hillary's will start the budget year with 3,609.5 sq. yards of nylon and 4,344.5 Sq. yards of lining. For budgeting purposes, the plan is to always have an ending inventory of nylon equal to 30% of the next quarter's needs and lining equal to 25% of next quarter's needs. H. Hillary's buys raw material on account and plans to pay for 25% in the quarter of purchase and the remaining 75% in the next quarter. The accounts payable account consists only of the unpaid portion of the purchase of raw materials. 1. Wages and salaries are paid on the last day of the month. J. Fixed overhead is projected as follows and is paid for in the quarter incurred (except for depreciation). Depreciation $20,790 per qtr. Property tax $4,274 per qtr. Supervisory Salary $25,988 per qtr. Insurance $1,444 per qtr. K. Variable overhead is budgeted as follows and is paid for in the quarter incurred. It is based on total units produced (small backpacks + larger backpacks) Indirect Materials $0.4851 per unit produced Indirect Labor $1.9173 per unit produced Maintenance $0.3696 per unit produced Utilities $0.8085 per unit produced L. Marketing expenses are as follows and are paid for in the quarter incurred. Advertising $25,988 per qtr. Commissions 5.0% of dollar sales Salary $31,763 per qtr. M. Fixed administrative expenses are as follows and are paid for in the quarter incurred (except for depreciation). Depreciation - $1,444 per qtr. Officers' Salaries - $25,988 per qtr Office Salaries - $18,625 per qtr Office Rent - $2,490.47 per atr Miscellaneous - $1,804.69 per atr N. The Balance Sheet (unclassified) for the year just ending (2019) is as follows: Assets: Cash $ 308,000 Accounts Receivable 407,000 Finished Goods Inventory-smaller 870,232 Finished Goods Inventory-larger 876,480 Work-in-process Inventory 235,840 Nylon Inventory 123,750 Lining Inventory 39,600 Property, plant, and equip. (net) $ 3,520,000 Total Assets $ 6,380,902 Liabilities: Accounts Payable $209,000 Income Tax Payable $ 1,210,000 Interest Payable Dividends Payable Short-term Debt Stockholders Equity: Common Stock $ 3,300,000 Retained Earnings $ 1,661,902 Total liabilities and Stockholder's Equity $ 6,380,902 0. In January Hillary's expects to declare a $240,000 dividend. It will be paid 12 in the second quarter and 2 in the fourth quarter. P. Hillary's also plans to purchase and pay for $125,000 of equipment during each quarter. Q. The income tax rate is 35% and is paid on April 15 of the next year. Required: Prepare the formal master budget schedules for each quarter of the coming year, 2020 and for the year in total. Prepare formal financial statements for the year only. The following components must be included: Part A Sales Budget: Smaller ourth First Second First Second 10,395 20,790 75 75 779,625 1,559,250 Third F 16,170 75 1,212,750 Total 13,629 60,984 Budgeted Sale in Units Budgeted Selling Price Total Sales Budget 11,550 18,480 75 1,022,175 4,573,800 866,250 1,386,000 Sales Budget: Larger First Budgeted Sale in Units Budgeted Selling Price Total Sales Budget First Second 9,240 13,860 195 195 1,801,800 2,702,700 Third 6,930 195 1,351,350 Fourth 2,310 195 450,450 Total 32,340 195 6,306,300 10,395 195 2,027,025 Second 15,015 195 2,927,925 Schedule of Cash Collection First 1,290,713 Credit Sale collected in Same Quarter Credit Sale collected in Next Quarter 50% 50% Second 2,130,975 2,130,975 Third 1,282,050 1,282,050 Fourth 736,312.50 736,312.50 Total 5,440,050 5,440,050 Production Budget Smaller First First Second 18,480 20% Budget Sale in Units Add: Desired Ending Inventory Sub-Total Less: Beginning Inventory Budgeted Production Second 10,395 20,790 4,158 3,234 14,553 24,024 -12,705 -4,148 1,848 19,876 Euth Third Fourth 16,170 13,629 2,725.50 2 ,310 18,896 15,939 -3,234 -2,726 15,662 13,213 Total 60,984 2,310 63,294 -12,705 50,589 11,550 3,696 15,246 -4,148 11,088 Production Budget Langer First Fourth First 20% Budget Sale in Units Add: Desired Ending Inventory Sub-Total Less: Beginning Inventory Budgeted Production Second 9,240 13,860 2,772 1,386 12,012 15,246 -6,930 -2,772 5,082 12,474 Third 6,930 462.00 7,392 -1,386 6,006 2,310 2,079 4,389 -462 3,927 Total 32,340 2,079 34,419 -6,930 27,489 Second 10,395 15,015 3,003 13,398 -2,772 10,626 First First Nylon Small Large 19 11,319 11,319 0.331 1.375 19,299 Raw Material Budget Bugeted Production Bugeted Production Nylon required per unit for Smaller Nylon required per unit for Larger Total Nylon required for Production Add: Desired Ending Inventory Total Needs Less: Beginning Inventory Bugeted Purchace in Units Cost per unit of Nylon Total Bugeted Purchase of Nylon Second 1,848 19,867 5,082 14,784 0.33 0.33 1.375 1.375 7,598 23,708 7,112 4,028 14,710 27,736 -3,610 7,112 11,100 20,623 10.396 10.396 115,399 214,299 Third 15,622 17,787 0.33 1.375 13,427 2,928 16,355 -4,028 12,327 10.396 128,148 Fourth Total 13,213 50,589 14,091 51,744 0.33 0.33 1.375 1.375 9,760 54,493 5,950 5,481 15.710 59,973 -2,928 -3,610 12,313 56,363 10.396 10.396 25,105 585,952 30% First First Lining Small Large 11,088 10,626 0.11 0.55 7,064 Raw Material Budget Bugeted Production Bugeted Production Lining required per unit for Smaller Lining required per unit for Larger Total Nylon required for Production Add: Desired Ending Inventory Total Needs - Less: Beginning Inventory Bugeted Purchace in Units Cost per unit of Lining Total Bugeted Purchase of Lining Second Third Fourth Total 1,848 19,867 15,622 13,213 50,589 5,082 12,474 6,006 3,927 27,489 0.11 0.11 0.11 0.11 0.11 0.55 0.55 0.55 0.55 0.55 2,998 9,046 5,026 3,613 20,684 2,261 1,257 903 1,766 1,766 5,260 10,302 5,929 5,379 22,450 -4,345 -2,261 -1,257 -903 -4,345 915 8,041 4,673 4,476 18,105 2.772 2.772 2.772 2.772 2.772 2,537 22,290 12,953 12,407 50,188 25% First Cutting Small Large 5,082 Direct Labor Budget Bugeted Production Bugeted Production Hours required for Smaller Hours required for Larger Total Hours required for Production Per hour rate Total Direct Labor Cost - Cutting Second 1,848 19,867 14,784 0.11 0.11 0.165 0.165 1,042 4,243 20.79 20.79 21,663 88212 Third 15,622 17,787 0.11 0.165 2,714 20.79 56424 Fourth Total 13,213 50,589 14,091 51,744 0.11 0.11 0.165 0.165 2,101 10,100 20.79 20.79 43680 209979 First Sewing Small Large Direct Labor Budget Bugeted Production Bugeted Production Hours required for Smaller - Hours required for Larger Total Hours required for Production Per hour rate Total Direct Labor Cost - Sewing Second 1,848 19,867 5,082 14,784 0.275 0.275 0.44 0.44 2,744 10,952 34.65 34.65 95080 379487 Third 15,622 17,787 0.275 0.44 6,950 34.65 240818 Fourth 13,213 14,091 0.275 0.44 5,362 34.65 185793 Total 50,589 51,744 0.275 0.44 26,007 34.65 901143 First Accounts Payable Schedule of Payment for Material Budgeted Purchased Cost Second Third Fourth 117937 236689141101 140413 Total 636139 Nylon+Lining - Payment in Same Quarter Payment in Next Quarter 25% 75% 29484 209000 59172 88452 35275 177517 35103 105826 159035 580795 105309 - Total Payment/Payable 238484 147625 212792 140929 739830 105309 First Second 24809 115777 Third Fourth 77571 61362 Total 279519 3.58*Units Produced Overhead Budget Variable Overheads - Fixed Overheads: Depreciation Property Tax Supervisor Salary 20,790 4,274 25,988 20,790 4,274 25,988 20,790 4,274 25,988 20,790 4,274 25,988 83,160 17,096 103,952 Insurance Total Fixed Overheads Total Overheads Less: Non Cash Overheads Dep Cash Dispursment for Overheads 1,444 52,496 77,305 -20,790 56,515 1,444 52,496 168,273 -20,790 147,483 1,444 52,496 130,067 -20,790 109,277 1,444 52,496 113,858 -20,790 9,068 5,776 209,984 489,503 -20,790 406,343 First Second 129,071 213,098 Third 128,205 Fourth Total 73,631 544,005 5% of Dollar Sale Marketing Budget Variable Marketing Expense Fixed Marketing Expense: Advertising Salaries Total Fixed Marketing Expense Toal Marketing Expense 25,988 31,763 57,751 186,822 25,988 31,763 57,751 270,849 25,988 31,763 57,751 185,956 25,988 31,763 57,751 131,382 103,952 127,052 231,004 775,009 First Second Third Fourth Total s General & Admin Budget - Fixed Admin Expense 3 Depreciation Officeer's Salaries Office Salaries 1 Office Rent e Miscellaneous Total Fixed Admin Expense Less: Non Cash Overheads-Dep 5 Cash Dibursement for Overheads 1,444.00 25,988.00 18.625.00 2,490.47 1,804.69 50,352.16 -1,444.00 48,908.16 1,444.00 25,988.00 18.625.00 2,490.47 1,804.69 50,352.16 -1,444.00 48,908.16 1,444.00 25,988.00 18,625.00 2,490.47 1,804.69 50,352.16 -1,444.00 48,908.16 1,444.00 5,776.00 25,988.00 103,952.00 18,625.00 74,500.00 2,490.47 9,961.88 1,804.69 7,218.76 50,352.16 201,408.64 -1,444.00 -5,776.00 48,908.16 195,632.64 -Cash Budget 3 Beginning Balance Add: Collection from Customer First Second 308000 1254893 1697713 3421688 Third 2227239 3413025 Fourth Total 4 717527 308000 2018363 10550788 2005713 4676581 5640264 6735889 10858788 1 Total Cash Available Cash Disbrusment for: Direct Material Direct Labor - Overheads - Marketing Expense - Admin Expense 3 Dividend Purchase of Equipment Income Tax Payable 238484 95089 56515 186822 48908 147625 379477 147483 270849 48908 120000 125000 1210000 212792 240805 109477 185956 48908 140929 185776 93068 131382 48908 120000 125000 739830 901147 406343 775009 48908 240000 500000 1210000 125000 125000 Total Cash Disbursment Ending Cash Balance 750819 1254893 2449341 2227239 922738 4717527 845064 5890825 4967962 5890825 Hillarys Handbags Manufacturing Co Balance Sheet Assets: Cash: Accounts Receivable: Finshed Goods Inventory -smaller: Finshed Goods Inventory -larger: Work in Process Inventory: Nylon Inventory: Lining Inventory: PP&E: Total Assets: 10674764 Liabilities: Accounts Payable: Income Tax Payable: Interest Payable: Dividends Payable: Short-term Debt: Stockholders Equity: Common Stock: Retained Earnings: Total Liabilities and Equity: Hillarys Handbags Manufacturing Co Statement of Cash Flows Cash Flows from Operating Activities: Net Income: 3798335 Net cash provided by operating activities: Depreciation: Increase in Current Assets: Accounts Receivable: Inventory: Prepaid Expenses: Increase in Current Liabilities: Accounts Payable: Accure Expenses and Unearned Revenues: Net Cash Provided by Operating Activities: 6111490