I need someone to do the detailed CASH BUDGET for me please. The answer is posted already is wrong, I need another solution. I do have the first quarter cash balance ok but I need the Ending cash balance to be $66932. here is what I have so far: Thanks Our controller, Richard Kimmel is negotiating with potential new Clay suppliers in Kentucky. We need the Large Gnome Divisions Master Budget for the fiscal year ended June 30, 2019 for our corporate strategic planning process, and we cannot wait for Richards return from Kentucky. We would like you to prepare the Large Gnome Divisions Master Budget for the fiscal year ended June 30, 2019.

The deliverables are as follows:

1. Sales budget, including a schedule of expected cash collections.

2. Production budget.

3. Direct materials budget, including a schedule of expected cash disbursements for materials.

4. Direct labor budget.

5. Manufacturing overhead budget.

6. Ending finished goods inventory budget calculating the expected value of the finished goods inventory as of June 30, 2019.*

7. Selling and administrative expense budget.

8. Cash budget.

9. Budgeted income statement for the year ending June 30, 2019.*

10. Budgeted balance sheet for June 30, 2019.*

All the Master Budget schedules except those marked with an asterisk for the Large Gnome Division should include a column for each quarter and a total column for the fiscal year. We only need annual totals for the budgeted financial statements (schedules 9 and 10) and we only need a year-end total for the value of finished goods inventory (schedule 6).

During 2018-19fiscal year, the average selling price for large gnomes is expected to be $107 per gnome. The Large Gnome Division forecasts the following number gnome sales.

Quarter First Second Third Fourth

Gnome sales 44,000 82,000 42,000 76,000

The collection pattern for Accounts Receivable is as follows:

o 75 percent of all sales are collected within the quarter in which they are sold

o 25 percent of all sales are collected in the following quarter.

o There are no bad debts/uncollectables.

Due to higher than expected demand this year, the Large Gnome Division expects to have no finished gnomes in inventory on July 1, 2018, the beginning of the first quarter of the new fiscal year. To avoid having that problem in the coming fiscal year, the Large Gnome Division would like to have the ending inventory of Gnomes at the end of each of the first three quarters equal to 26% of the budgeted sales for the next quarter. They would like to have 23,000 finished gnomes on hand on June 30, 2019.

Quarter First Second Third Fourth

Ending FG inventory in Gnomes as a % of the next quarters budgeted sales 26% 26% 26% ?

Ending FG inventory in Gnomes ? ? ? 23,000

Each large gnome requires an average of 4 pounds of clay. The Large Gnome Division buys clay for $0.90 per pound and they expect the price to remain constant throughout the year. They expect to have 70,000 pounds of clay on hand as of July 1, 2018, the beginning of the first quarter of the fiscal year. At the end of each of the first three quarters, the Large Gnome Division would like to have their direct materials inventory quantity to equal 35 percent of the amount required for the following quarters planned production. On June 30, 2019, the end of the fiscal year, Large Gnome Division would like to have 110,000 pounds of clay on hand.

Quarter First Second Third Fourth

Ending DM inventory as a % of the next quarters production requirement 35% 35% 35% ?

Ending DM inventory in pounds ? ? ? 110,000

The Large Gnome Division buys its clay on account. It pays for 45% of its purchases of direct materials in the quarter in which they were purchased and 55% in the quarter after they were purchased.

Each large gnome requires 3.00 hours (180 minutes) of direct labor. Employees engaged in direct labor will be paid an estimated $15.00 per labor hour. Wages and salaries are paid on the 15th and 30th of each month.

Variable manufacturing overhead is estimated to be $11.00 per direct labor hour for the coming fiscal year. All variable manufacturing overhead expenses are paid for in the quarter incurred.

Fixed manufacturing overhead is estimated to total $330,000 each quarter, with $190,000 out of the total amount of $330,000 representing depreciation on machinery, equipment and the factory. All other fixed manufacturing overhead expenses are paid in cash in the quarter they occur. The fixed manufacturing overhead rate will be computed by dividing the years total fixed manufacturing overhead by the years budgeted direct labor hours. Round the fixed overhead rate to the nearest penny.

Variable selling and administrative expenses are estimated to be $14.00 per gnome sold. Fixed selling and administrative expenses are expected to total $90,000 each quarter, with $25,000 out of the total amount of $90,000 representing depreciation on the office space, furniture and equipment. Other than depreciation, all selling and administrative expenses are paid for in the quarter they occur.

On June 30, 2019 the Large Gnome Division plans to buy new machinery and equipment for $1,900,000. The new machinery and equipment will be acquired at the very end of the year, so it will not be used in production and sales during the coming year and it will not be depreciated until the following year. The Large Gnome Division expects to pay 15% down and finance the remaining 85% of the equipment cost with a loan. No interest payable will accrue on the equipment loan until after June 30, 2019.

The Division must maintain a minimum cash balance of $60,000. If after accounting for cash receipts and disbursements (including dividends) in the cash budget, the budgeted cash available cash falls below $60,000 in any quarter, the Division will need to borrow cash. They have arranged a line of credit with Liberty Bank, allowing it to borrow in $10,000 increments. Assume borrowing will take place at the beginning of any quarter in which the available cash would otherwise be below $60,000 so that at no time during the quarter will the cash balance fall below $60,000 (after payment of interest). If there is extra cash at the end of the quarter and there is borrowing outstanding, the division should pay down principal (also in increments of $10,000). Liberty Bank charges the Division interest at the rate of 1.0% per quarter, which must be paid at the end of each quarter.

As a fully owned subsidiary, the Large Gnome Division does not pay income taxes. All income taxes are charged to Kimmel Gnomes, the parent company. Large Gnome Division will pay dividends of $25,000 each quarter to its corporate parent, Kimmel Gnomes. The dividends must be paid, even if the Large Gnome Division has to borrow on its line of credit to make the payment

The budgeted balance sheet for the Large Gnome Division on June 30, 2018 (which is the same as the budgeted balance sheet at the beginning of business July 1, 2018) is presented below. Kimmel Gnomes owns 100% of the Capital Stock of the Large Gnome Division.

LARGE GNOME DIVISION KIMMEL GNOMES BUDGETED BALANCE SHEET JUNE 30, 2018

ASSETS LIABILITIES & EQUITY

Cash $208,000 Accounts Payable $96,000

Accounts Receivable 1,230,000 Notes Payable 0

Raw Material Inventory 63,000 Capital Stock 4,000,000

Plant and Equipment 14,500,000 Retained Earnings 11,905,000

TOTAL ASSETS $16,001,000 TTL LIAB. & SE $16,001,000

Home Insert Draw Page Layout Formulas Data Review View Tell me Share Calibri (Body) AutoSum 12 A 19. Wrap Text Custom 2.0 Fill Paste B I U Insert A. Format y 98 Merge & Center $ % % Delete Conditional Format Formatting as Table Cell Styles X Clear Sort & Filter Find & Select F19 x fx =SUM(F12:F18) A B D E F G H Cash Budget Schedule Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year $ 208,000 $ 61,374 $ 64,951 $ 62,286 $ 208,000 1 4,761,000 4,969,000 7,757,500 7,818,874 5,564,000 5,628,951 7,222,500 7,284,786 25,305,000 25,513,000 2 3 4 5 6 7 Beginning cash balance 8 Add cash receipts 9 Collection from customers 10 Total cash available 11 Total cash disbursements: 12 Direct materials 13 Direct labor 14 Manufacturing overhead 15 Selling and administrative 16 Equipment purchases 17 Dividends 18 Interest 19 Total cash disbursements for materials at 20 Excess (deficiency) of cash available over disbursements Ju 21 Financing - 22 Borrowings (at the beginnings of quarters) 23 Repayments (at end of the year) 24 Total financing 25 Ending cash balance 3 4 214,066 248,523 225,845 2,939,400 3,222,000 2,287,800 2,295,560 2,502,800 1,817,720 681,000 $ 1,213,000 $ 653,000 $ 5 7 248,334 936,768 3,565,800 12,015,000 2,754,920 9,371,000 1,129,000 3,676,000 1,615,000 1,615,000 25,000 100,000 1,800 34,300 9,339,854 27,748,068 (2,055,068) $ (2,235,068) 25,000 12,600 6,167,626 (1,198,626) 25,000 12,600 7,223,923 594,951 25,000 7,300 5,016,665 612,286 $ 1,260,000 2,120,000 3,380,000 (1,080,000) 1,260,000 61,374 $ (530,000) (530,000) 64,951 $ (550,000) (550,000) 62,286 $ $ 2,120,000 64,932 $ 64,932 Sheet1 Schedule 1 Schedule 2 Schedule 3 Schedule 4 Schedule 5 Schedule 6 Schedule 7 Schedule 8 Schedules + Circular Heferences HE C 176 TUTORS CHAT by Ches 18 N A W Home Insert Draw Page Layout Formulas Data Review View Tell me Share Calibri (Body) AutoSum 12 A 19. Wrap Text Custom 2.0 Fill Paste B I U Insert A. Format y 98 Merge & Center $ % % Delete Conditional Format Formatting as Table Cell Styles X Clear Sort & Filter Find & Select F19 x fx =SUM(F12:F18) A B D E F G H Cash Budget Schedule Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year $ 208,000 $ 61,374 $ 64,951 $ 62,286 $ 208,000 1 4,761,000 4,969,000 7,757,500 7,818,874 5,564,000 5,628,951 7,222,500 7,284,786 25,305,000 25,513,000 2 3 4 5 6 7 Beginning cash balance 8 Add cash receipts 9 Collection from customers 10 Total cash available 11 Total cash disbursements: 12 Direct materials 13 Direct labor 14 Manufacturing overhead 15 Selling and administrative 16 Equipment purchases 17 Dividends 18 Interest 19 Total cash disbursements for materials at 20 Excess (deficiency) of cash available over disbursements Ju 21 Financing - 22 Borrowings (at the beginnings of quarters) 23 Repayments (at end of the year) 24 Total financing 25 Ending cash balance 3 4 214,066 248,523 225,845 2,939,400 3,222,000 2,287,800 2,295,560 2,502,800 1,817,720 681,000 $ 1,213,000 $ 653,000 $ 5 7 248,334 936,768 3,565,800 12,015,000 2,754,920 9,371,000 1,129,000 3,676,000 1,615,000 1,615,000 25,000 100,000 1,800 34,300 9,339,854 27,748,068 (2,055,068) $ (2,235,068) 25,000 12,600 6,167,626 (1,198,626) 25,000 12,600 7,223,923 594,951 25,000 7,300 5,016,665 612,286 $ 1,260,000 2,120,000 3,380,000 (1,080,000) 1,260,000 61,374 $ (530,000) (530,000) 64,951 $ (550,000) (550,000) 62,286 $ $ 2,120,000 64,932 $ 64,932 Sheet1 Schedule 1 Schedule 2 Schedule 3 Schedule 4 Schedule 5 Schedule 6 Schedule 7 Schedule 8 Schedules + Circular Heferences HE C 176 TUTORS CHAT by Ches 18 N A W