Instructions: Frontier Airlines Assembly manufactures seats for private planes. They need to budget for the month of October, 2020. They want to know if they will have enough funds for a $5,000,000 planned expansion. Your job is to complete the budgets indicated and answer the questions below. The CEO has said she wants to build & sell 3000 seats in October, 4000 seats in November, and 2500 seats in December. Each seat will sell for $4500 each. The cost of the materials for each seat has been broken down: Leather $400, Frame & Cushion $600, Misc. Bolts $40. The production manager says it takes about 15 hours to build and average labor cost is $35/hour per seat. Other costs you may want to consider include utilities for the factory $20/seat, factory salaries for janitor & supervisor $10,000/month, Depreciation on factory equipment $15,000/month, CEO Salary is $150,000/year, CFO Salary is $120,000/year, Admin Assistant is $35,000/year. Selling expenses are $25,000/month. Misc. office expenses are $1000/month, Office Equipment depreciation $2,500/month. Everything is paid in the month of, as the CEO doesn't like to owe anyone. The CEO would like 30% of next month's production ready to sell so there is no shortage. Cash is collected 60% in the month of sale, and the remainder in the month following. Beginning Balances are listed below: Accounts Receivable on 10/1 is $50,000 Accounts Payable on 10/1 is $0 Retained Earnings on 10/1 is $1,900,000 Cash 10/1 is $200,000 Required Profit Margin 40% Income Tax Rate is 20% Finished Goods, 10/1 is $20,000 Finished Goods, 10/31 is $40,000 WIP, 10/1 is $10,000 WIP, 10/31 is $15,000 Materials desired beginning, 10/1 is $50,000 (Leather $4,000; Frames $8,000; Misc. Supplies $2,000) Materials desired ending, 10/31 is $8,000 (Leather $7,000; Frames $10,000; Misc. Supplies $4,000) Answer the following questions in a text box: What was the 10/31 balance in Accounts Receivable? Is there enough cash on October 31 to move forward with a $5,000,000 expansion, if $1,000,000 must be set aside for operational liquidity? Why or why not? What is the profit margin? Does it meet the CEO's minimum requirement? Instructions: Frontier Airlines Assembly manufactures seats for private planes. They need to budget for the month of October, 2020. They want to know if they will have enough funds for a $5,000,000 planned expansion. Your job is to complete the budgets indicated and answer the questions below. The CEO has said she wants to build & sell 3000 seats in October, 4000 seats in November, and 2500 seats in December. Each seat will sell for $4500 each. The cost of the materials for each seat has been broken down: Leather $400, Frame & Cushion $600, Misc. Bolts $40. The production manager says it takes about 15 hours to build and average labor cost is $35/hour per seat. Other costs you may want to consider include utilities for the factory $20/seat, factory salaries for janitor & supervisor $10,000/month, Depreciation on factory equipment $15,000/month, CEO Salary is $150,000/year, CFO Salary is $120,000/year, Admin Assistant is $35,000/year. Selling expenses are $25,000/month. Misc. office expenses are $1000/month, Office Equipment depreciation $2,500/month. Everything is paid in the month of, as the CEO doesn't like to owe anyone. The CEO would like 30% of next month's production ready to sell so there is no shortage. Cash is collected 60% in the month of sale, and the remainder in the month following. Beginning Balances are listed below: Accounts Receivable on 10/1 is $50,000 Accounts Payable on 10/1 is $0 Retained Earnings on 10/1 is $1,900,000 Cash 10/1 is $200,000 Required Profit Margin 40% Income Tax Rate is 20% Finished Goods, 10/1 is $20,000 Finished Goods, 10/31 is $40,000 WIP, 10/1 is $10,000 WIP, 10/31 is $15,000 Materials desired beginning, 10/1 is $50,000 (Leather $4,000; Frames $8,000; Misc. Supplies $2,000) Materials desired ending, 10/31 is $8,000 (Leather $7,000; Frames $10,000; Misc. Supplies $4,000) Answer the following questions in a text box: What was the 10/31 balance in Accounts Receivable? Is there enough cash on October 31 to move forward with a $5,000,000 expansion, if $1,000,000 must be set aside for operational liquidity? Why or why not? What is the profit margin? Does it meet the CEO's minimum requirement