I was instructed to the a master budget. I am confused regarding number 7-13. Do I have to set up budgets for these questions like i did for the production budget and labor budget or is this just part of a pro-forma income statement and balance sheet?

Dye-Aspora, Inc manufactures a red industrial dye. The company is preparing its master budget for the first quarter and has presented you with the following information. 1. The December 31, 20XX, balance sheet for the company follows. Fixed overhead is incurred evenly throughout the year, Fixed overhead per year is DYE-ASPORA, Incorporated composed of the following costs: Balance Sheet December 31, 20XX Salaries $78,000 Utilities 12,000 Assets Liabilities and Stockholder Equity Insurance-factory 2,400 Cash $5.080 Notes Payable $25.000 Depreciation-factory 27,600 Accounts Receivable 26,500 Accounts Payable 2,148 Raw Materials Inventory 2000 Dividends Payable 10.000 6. There is no beginning work in process inventory. All work in process is completed in the Finished Goods Inventory 2,680 Total Liabilities 37,148 period in which it is started. Raw materials inventory at the beginning of the year consists Prepaid Insurance 1,200 Common Stock 100,000 of 1,000 gallons of Mordant. There are 400 gallons of dye in finished goods inventory at the Building 300,000 Paid-in Capital 50.000 beginning of the year carried at standard cost. Aco Depreciation (20,000) 280,000 Retained Earnings 180,312 280,312 Total Assets $317.460 Total Liabilities and Equity $317460 7. Accounts Payable relates solely to raw material and is paid 60 percent in the month of purchase and 40 percent in the month after purchase. No discounts are given for prompt 2. The Accounts Receivable balance at December 31 st represents the remaining balances of payment. November and December credit sales: $70,000 and $65,000, respectively. 8. The dividend will be paid in January. C 3. Estimated sales in gallons of dye for January through May follow: January 8,000 9. A new piece of equipment costing $9,000 will be purchased on March 1. Payment of 80 February 10,000 percent will be made in March and 20 percent in April. The equipment has a useful life of March 15.000 three years and will have no salvage value. April 12,000 May 11,000 10. The note payable has a 6% interest rate; interest is paid at the end of each month. The Each gallon of dye sells for $12.75. principal of the note is repaid as cash is available to do so. 4. The collection pattern for accounts receivable is as follows: 1 1. Dye-Aspora's management has set a minimum cash balance at $5,000. Investments and 70% in the month of sale, borrowings are made in $100 increments. Investments are expected to earn 9% per year. . 20% the month after sale, and . 10% the second month after sale. 12. The ending finished goods inventory should include 15 percent of the next month's needs. Dyc-Aspora expects no bad debts and gives no cash discounts. This is not true at the beginning of January due to a miscalculation in sales for December. 5. Each gallon of dye has the following standard quantities and costs for direct materials and The ending inventory of raw materials also should be 25 percent of the next month's needs. direct labor. 13. Monthly selling and administrative costs are paid in cash. Per month costs are as follows: Quantity Cost/rate Std Cost Mordant (DM) 1.20 Gal $2.00 $2.40 Salaries $18,000 Direct labor 0.25 Hr $12.00 $3.00 Utilities 800 Some evaporation loss occurs during processing. Variable overhead (VOH) is applied basis Office Rent 7,000 machine-hours. The processing of I gallon of dye takes 5 MH. The variable overhead rate is $0.06 per MH. VOH is entirely of utility costs, FOH is applied per gallon based on an expected annual capacity of 120,000 gallons. Required: Prepare a master budget, by month, for the first quarter including quarterly totals and the pro- forma income statement and balance sheet as of March 3Ist