IN THE ATTACHED PICTURES HAS MILESTONE 1 AND MILESTONE 2. I ONLY NEED HELP WITH STARTING THE BUDGET BALANCE SHEET.

(Master Budget Preparation) You have been hired by the McClosky Corporation and they manufacture industrial dye. The company is preparing its 20X9 master budget and has presented you with the following information: A. The projected December 31, 20X8, balance sheet for the company is as follows: Assets Cash $ 6,080 Accounts Receivable 29,500 Raw Materials Inventory 1,000 Finished Goods Inventory 3,200 Prepaid Insurance 1,800 Building $ 350,000 Accum Depreciation (25,000) 325,000 Total Assets $ 366,580 Liabilities and Equity Notes Payable $ 25,000 Accounts Payable 2,650 Dividends Payable 12,000 Total Liabilities $ 39,650 Common Stock $ 200,000 Paid-In Capital 40,000 Retained Earnings 86,930 326,930 Total Liabilities and Stockholders Equity $ 366,580 Other Information that is being provided to you: B. The Accounts Receivable balance at 12/31/20X8 represents the balances of November and December credit sales. Sales were $90,000 and $85,000 respectively. C. Estimated sales in gallons of dye for January through May 20X9 are as follows: January 9,000 February 11,000 March 16,000 April 14,000 May 13,000 June 12,000 Each gallon of dye sells for $ 15 D. The collection pattern for accounts receivable is as follows: 70 percent in the month of sale, 20 percent in the first month after the sale, and 10 percent in the second month after the sale. McClosky does not provide cash discounts and they are not expecting any bad debts. E. Each gallon of dye has the following standard quantities and costs for direct material and direct labor: 1.4 gallons of direct material (some evaporation takes place during processing) X $.90 per gallon $ 1.26 0.5 direct labor X $ 8 per hour 4.00 F. Variable overhead is applied to the product on a machine-hour basis. Processing one gallon of dye takes five hours of machine time. The variable overhead is $0.08 per machine hour. Variable overhead consists of utility costs. Total annual fixed overhead is $150,000; it is applied at $ 1 per gallon based on expected annual capacity of 150,000 gallons. Fixed overhead per year is made up of the following costs: Salaries $ 110,000 Utilities 15,000 Insurance 1,800 Depreciation-factory 23,200 Fixed overhead is incurred evenly throughout the year. G. There is no beginning Work-in-Process Inventory. All work is completed in the period in which it is started. Raw Material Inventory at the beginning of the year consists of 1,100 gallons of direct material at a standard cost of $.90 per gallon. There are 500 gallons of dye in Finished Goods Inventory at the beginning of the year carried at a standard cost of $6.28 per gallon; direct material, $.98, direct labor, $4.00; variable overhead $ .30; fixed overhead , $1,00 H. Accounts Payable relates to raw material and is paid 60 percent in the month of purchase and 40 percent in the month after purchase. No discounts are received for prompt payment. I. The dividend will be paid in January 20X9. J. A new piece of equipment will be purchased in March 20X9 and the cost is $12,000. Payment of 80 percent will be made in March and 20 percent in April. The equipment has a useful life of three years and will be placed in service on March 1. K. The note payable has a 12 percent interest rate; interest is paid at the end of each month. The principle of the note is repaid as cash is available to do so. L. The McClosky management team wishes to maintain a minimum cash balance of $5,500. Investments and borrowing are made in $100 amounts. (Even $100 amounts). Interest on any borrowings are expected to be 12 percent per year, and investments will earn 4 percent per year. M. The ending finished goods inventory should include 5 percent of next months sales. This will not be true at the beginning of 20X9 due to a miscalculation in sales for the month of December. The ending inventory of raw materials should be 5 percent of next months needs. N. Selling and administration costs per month are as follows: salaries $25,000; rent, $7,000 and utilities, $800. These costs are paid in cash as they are incurred. O. The companys tax rate is 20 percent. Please note: You will be preparing a master budget for the first of 20X9 and the supporting schedules listed below: Milestone 1: Please prepare the following budgets: A. Sales Budget(already completed) B. Production Budget(already completed) C. Purchases Budget(already completed) Milestone 2: Please prepare the following budgets: D. Labor Budget(already completed) E. Variable Overhead Budget(already completed) F. Fixed Overhead Budget(already completed) G. Budgeted Cost of Goods Manufactured(already completed) H. Budgeted Income Statement(already completed)

JUST NEED HELP WITH THE BELOW ITEMS Milestone 3: I. Budgeted Balance Sheet J. Cash Budget K. Budget Presentation and please address the following questions: (1) The sales manager would like to increase the sales price by 10 next quarter, what will be the projected revenues be for the 2nd quarter. (2) The production manager would like to purchase new equipment for next quarter due to the fact that their competitor has purchased equipment which cost $50,000. Will the company be able to make the purchase or will you need more information? (3) The CEO feels that the cash budget is not necessary, please explain to the CEO why cash budgeting is important to the organization. (4) Please explain the to the management team how a competitors actions can affect business planning.

B C D E F A a. sales budget 1 March Total 16000 36000 LOWN Sales units Sales price per unit Sales amount January 9000 $ $ 1,35,000 February 11000 $ 15.00 $ 1,65,000 $ $ 2,40,000 $5,40,000 2 Production Budget 10 11 12 Sales units Add: Closing Stock Required Total Goods Required Less : Opening Stock Production Required 2 January February 9000 11000 550 8 00 1 9550 11800 500 550 9 050 1 1250 March 16000 700 1 6700 800 15900 Total 36000 700 3 6700 500 36200 April 14000 650 14650 700 13950 19 20 Direct Material Budget | | | January February March Total Production Required 9050 11250 1 5900 36200 Raw Material Per unit 1.4 1.4 I 1.4 Raw Material for Production 12670 15750 2226050680 Add : Closing Stock Required 787.5| 1113 1 976.5 976.5 Total Material Required 13457.5 16863 23236. 5 51656.5 Less: Opening Stock 1100 787. 5 1 1131 1 100 Material to be purchased 1 12357.5| 16075.5 22123.5 50556.5 Rate per gallon $ $ $ Purchase cost $11,121.75 $14,467.95 $ 19,911.15 $45,500.85 $ 4 Direct Labor Budget January Production Required 9050 Labor hours per unit 0.5 Total Labor Hours Require) 4525 Labor Rate per hour $ 8.00 Labor Amount_ $ 36,200 February 1 1250 0.5 5 625 $ 8.00 $ 45,000 March Total 1 5900 36200 0.5 0.5 7 950 1 8100 $ 8,00 $ 8.00 S 63,600 TS 144800 VARIABLE OVERHEAD BUDGET January Production (Units) 1 9 050 machine hours 45250 variable overhead rate/m $ 0.08 Budgeted variable overhel$ 3,620.00 February march total 1 12501 15900 36200 56250 7 9500 181000 $ 0.00 $ $ 4,500.00 $ 6,360.00 $ 14,480.00 NNNNDD FIXED OVERHEAD January Total 36200 Production (Units) Fixed overhead rate/ Budgeted Fixed 9050 $1.00 $9,050 February 1 1250 $1.00 _ $11,250 March 15900 $1.00 $15,900 $36,200 T February 1 1250 $14,175 $45,000 29 30 March 15900 $20,034 $63,600 Total 3 6200 $45,612 $144,800 BUDGETED COST OF GOODS January Production (Units) 9050 Direct materials Cost $11,403 Direct labor Cost $36,200 Variable Overhead costs Ifrom Variable Overhead Budget) $3,620 Fixed overhead costs(From Fixed Overhead budget) $9,050 Budgeted cost of goods manufactured $69,323 Budgeted Cost per $7.66 $4,500 $6,360 $14,480 $11,250 $15,900 $36,200 $86,175 $7.66 $121,794 $7.66 $277,292 $7.66 $3,200 T L (9000-500)*7.66 (11000*7.66) BUDGETED INCOME STATEMENT Assuming FIFO system of Inventory Cost of 500 gallons in finished goods Cost of balance units in January sales $65,110 Total Cost of goods sold in January $68,310 Total Cost of goods sold In February $84,260 Total Cost of goods sold in March $122,560 January Sales in units 9000 Sales Revenue | $135,000 Cost of goods sold $68.310 Gross Profit $66.690 Selling and administration expenses: Salaries $25,000 $7,000 Utilities $800 Total Selling and admin expenses $32,800 Pretax income $33,890 Tax expenses(20%) $6,778 Net Income $27,112 (16000*7.66) February 11000 $165,000 $84,260 $80,740 March 16000 $240,000 $122,560 $117,440 Total 36000 $540,000 $275,130 $264,870 $25,000 $7,000 S800 Rent $0 $75,000 $21,000 $2,400 $25,000 $7,000 800 $32,800 $47,940 $9.588 $38,352 $32,800 $84,640 $16,928 $67,712 $98,400 $166,470 $33,294 $133,176 B C D E F A a. sales budget 1 March Total 16000 36000 LOWN Sales units Sales price per unit Sales amount January 9000 $ $ 1,35,000 February 11000 $ 15.00 $ 1,65,000 $ $ 2,40,000 $5,40,000 2 Production Budget 10 11 12 Sales units Add: Closing Stock Required Total Goods Required Less : Opening Stock Production Required 2 January February 9000 11000 550 8 00 1 9550 11800 500 550 9 050 1 1250 March 16000 700 1 6700 800 15900 Total 36000 700 3 6700 500 36200 April 14000 650 14650 700 13950 19 20 Direct Material Budget | | | January February March Total Production Required 9050 11250 1 5900 36200 Raw Material Per unit 1.4 1.4 I 1.4 Raw Material for Production 12670 15750 2226050680 Add : Closing Stock Required 787.5| 1113 1 976.5 976.5 Total Material Required 13457.5 16863 23236. 5 51656.5 Less: Opening Stock 1100 787. 5 1 1131 1 100 Material to be purchased 1 12357.5| 16075.5 22123.5 50556.5 Rate per gallon $ $ $ Purchase cost $11,121.75 $14,467.95 $ 19,911.15 $45,500.85 $ 4 Direct Labor Budget January Production Required 9050 Labor hours per unit 0.5 Total Labor Hours Require) 4525 Labor Rate per hour $ 8.00 Labor Amount_ $ 36,200 February 1 1250 0.5 5 625 $ 8.00 $ 45,000 March Total 1 5900 36200 0.5 0.5 7 950 1 8100 $ 8,00 $ 8.00 S 63,600 TS 144800 VARIABLE OVERHEAD BUDGET January Production (Units) 1 9 050 machine hours 45250 variable overhead rate/m $ 0.08 Budgeted variable overhel$ 3,620.00 February march total 1 12501 15900 36200 56250 7 9500 181000 $ 0.00 $ $ 4,500.00 $ 6,360.00 $ 14,480.00 NNNNDD FIXED OVERHEAD January Total 36200 Production (Units) Fixed overhead rate/ Budgeted Fixed 9050 $1.00 $9,050 February 1 1250 $1.00 _ $11,250 March 15900 $1.00 $15,900 $36,200 T February 1 1250 $14,175 $45,000 29 30 March 15900 $20,034 $63,600 Total 3 6200 $45,612 $144,800 BUDGETED COST OF GOODS January Production (Units) 9050 Direct materials Cost $11,403 Direct labor Cost $36,200 Variable Overhead costs Ifrom Variable Overhead Budget) $3,620 Fixed overhead costs(From Fixed Overhead budget) $9,050 Budgeted cost of goods manufactured $69,323 Budgeted Cost per $7.66 $4,500 $6,360 $14,480 $11,250 $15,900 $36,200 $86,175 $7.66 $121,794 $7.66 $277,292 $7.66 $3,200 T L (9000-500)*7.66 (11000*7.66) BUDGETED INCOME STATEMENT Assuming FIFO system of Inventory Cost of 500 gallons in finished goods Cost of balance units in January sales $65,110 Total Cost of goods sold in January $68,310 Total Cost of goods sold In February $84,260 Total Cost of goods sold in March $122,560 January Sales in units 9000 Sales Revenue | $135,000 Cost of goods sold $68.310 Gross Profit $66.690 Selling and administration expenses: Salaries $25,000 $7,000 Utilities $800 Total Selling and admin expenses $32,800 Pretax income $33,890 Tax expenses(20%) $6,778 Net Income $27,112 (16000*7.66) February 11000 $165,000 $84,260 $80,740 March 16000 $240,000 $122,560 $117,440 Total 36000 $540,000 $275,130 $264,870 $25,000 $7,000 S800 Rent $0 $75,000 $21,000 $2,400 $25,000 $7,000 800 $32,800 $47,940 $9.588 $38,352 $32,800 $84,640 $16,928 $67,712 $98,400 $166,470 $33,294 $133,176