I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1,125,000.00 750,000.00 $375,000.00 Sales 25,000 lamps @ $45,00 Cost of Goods Sold $30.00 Gross Profit Selling Expenses: Fixed Variable (Commission per unit) $3.00 Administrative Expenses: Fixed Variable 52.00 Total Selling and Administrative Expenses: Net Profit Division N has decided to develop its budget based upon projected sales of 25,000 lamps at Division N has decided $49.00 per lamp. The company has requested that you prepare a master budget for the year. This budget is to be used for planning and control of operations and should be composed of: $ 23,000.00 75,000.00 $ 98,000.00 $ 42,000.00 50,000.00 92,000.00 1. Production Budget $ 190.000.00 135,000.00 2. Materials Budget 3. Direct Labor Budget 4. Factory Overhead Budget 5. Selling and Administrative Budget I See The Light Projected Balance Sheet As of December 31, 20x1 6. Cost of Goods Sold Budget 7. Budgeted Income Statement $ 34,710.00 67,500.00 8. Cash Budget Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 500 @ $16.00 3000 @ $30.00 Notes for Budgeting: 8,000.00 90,000.00 200,210.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets $ 20,000.00 6,800.00 The company wants to maintain the same number of units in the beginning and ending inventories of work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 700 pieces and decreasing the finished goods by 20%. 13,200.00 $ 213.410.00 $ $4,000.00 $ 34,000.00 Cument Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Famings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147.410.00 159.410.00 $213.410.00 8 Cash Budget Assume actual cash receipts and disbursements will follow the pattern below. (Note: Receivables and Payables of 12/31/x1 will have a cash impact in 20x2.) 1. 17.00% of sales for the year are made in November and December. Since our customers have 60 day terms those funds will be collected be collected in January and February. 2. 89.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February. 3. All other manufacturing and operating costs are paid for when incurred. 4. The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses. 5. Minimum Cash Balance needed for 20x2, $165,000. See The Light Projected Cash Budget For the Year Ending December 31, 20x2 Round dollars to two places, $##.## Beginning Cash Balance Cash Inflows: Sales Collections: Account Receivable (Sales last year not collected) Sales made and collected in 20x2 Cash Available {10.02) {10.03 {10.04 {10.05 Cash Outflows: Purchases Accounts Payable (Purchases last year) Purchases made and paid for in 20x2 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Selling and Administrative Less: Depreciation Total Cash Outflows {10.06) {10.07) {10.08) Budgeted Cash Balance before financing Needed Minimum Balance Amount to be borrowed (if any) {10.09) Budgeted Cash Balance {10.10} I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1,125,000.00 750,000.00 $375,000.00 Sales 25,000 lamps @ $45,00 Cost of Goods Sold $30.00 Gross Profit Selling Expenses: Fixed Variable (Commission per unit) $3.00 Administrative Expenses: Fixed Variable 52.00 Total Selling and Administrative Expenses: Net Profit Division N has decided to develop its budget based upon projected sales of 25,000 lamps at Division N has decided $49.00 per lamp. The company has requested that you prepare a master budget for the year. This budget is to be used for planning and control of operations and should be composed of: $ 23,000.00 75,000.00 $ 98,000.00 $ 42,000.00 50,000.00 92,000.00 1. Production Budget $ 190.000.00 135,000.00 2. Materials Budget 3. Direct Labor Budget 4. Factory Overhead Budget 5. Selling and Administrative Budget I See The Light Projected Balance Sheet As of December 31, 20x1 6. Cost of Goods Sold Budget 7. Budgeted Income Statement $ 34,710.00 67,500.00 8. Cash Budget Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 500 @ $16.00 3000 @ $30.00 Notes for Budgeting: 8,000.00 90,000.00 200,210.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets $ 20,000.00 6,800.00 The company wants to maintain the same number of units in the beginning and ending inventories of work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 700 pieces and decreasing the finished goods by 20%. 13,200.00 $ 213.410.00 $ $4,000.00 $ 34,000.00 Cument Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Famings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147.410.00 159.410.00 $213.410.00 8 Cash Budget Assume actual cash receipts and disbursements will follow the pattern below. (Note: Receivables and Payables of 12/31/x1 will have a cash impact in 20x2.) 1. 17.00% of sales for the year are made in November and December. Since our customers have 60 day terms those funds will be collected be collected in January and February. 2. 89.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February. 3. All other manufacturing and operating costs are paid for when incurred. 4. The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses. 5. Minimum Cash Balance needed for 20x2, $165,000. See The Light Projected Cash Budget For the Year Ending December 31, 20x2 Round dollars to two places, $##.## Beginning Cash Balance Cash Inflows: Sales Collections: Account Receivable (Sales last year not collected) Sales made and collected in 20x2 Cash Available {10.02) {10.03 {10.04 {10.05 Cash Outflows: Purchases Accounts Payable (Purchases last year) Purchases made and paid for in 20x2 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Selling and Administrative Less: Depreciation Total Cash Outflows {10.06) {10.07) {10.08) Budgeted Cash Balance before financing Needed Minimum Balance Amount to be borrowed (if any) {10.09) Budgeted Cash Balance {10.10}