Jamaica Portraits Ltd Budgeting Project Lionel Messi, president of Jamaica Portraits Ltd, was just concluding a budget meeting with his senior staff. It was October of 2022, and the group was discussing the preparation of the firm's master budget for 2023 . "I've decided to go ahead and purchase the industrial robot we've been talking about. We'll make the acquisition on January 3 of next year, and 1 expect it will take most of the year to train the personnel and reorganize the production process to take full advantage of the new equipment." In response to a question about financing the acquisition, Messi replied as follows: "The robot will cost $250,000. There will also be an additional $50,000 in ancillary equipment to be purchased. We'll finance these purchases with a one-year $300,000 loan from CR7 Bank and Trust Company on January 2. I've negotiated a repayment schedule of four equal installments on the last day of each quarter. The interest rate will be 10 percent per annum on the reducing balance basis, and interest payments will be quarterly as well." With that, the meeting broke up. and the budget process was on. The following information was gathered: 1. Sales in the fourth guarter of 2022 and for all of 2023 by quarter is as follows: 2. Jamaica Portraits Ltd sales history indicates that 60 percent of all sales are on credit, with the remainder of the sales in cash. The compuny's collection experience shows that 80 percent of the credit sales are collected during the quarter in which the sale is made, while the remaining 20 percent is collected in the following quarter. 3. The company's direct material costs for the fourth quarter of 2022 and for each quarter in 2023 is projected to be as follows: 4. All direct-material purchases are made on account, and 80 percent of each quarter's purchases are paid in cash during the same quarter as the purchase. The other 20 percent is paid in the next quarter. 5. Indirect materials are purchased with cash as needed. Work-in-process is negligible. 2 6. The direct labour costs for each quarter of 2023 are projected to be as follows: 7. The following manufacturing overhead costs are budgeted for 2023 : 8. It is anticipated that a dividend of $50,000 will be declared and paid in cash each quarter. 9. The following relates to past selling and administrative expenses. This will be paid in cash. Use regression analysis to derive a cost function and use this cost function to estimate the selling and administrative cost. The expected sales in units for 2023 are as follows: Required: Prepare Jamaica Portraits Ltd cash budget for 2023 by quarter and in total for the year. The following are schedules and budgets you will need to provide, and the marks are indicated in parentheses. (a) Schedule of cash collected from customers. (12 1/2 marks) (b) Schedule of cash disbursement to suppliers for direct material. (10 marks) (c) Selling and administrative costs. (Round off variable cost to 2 decimal places and fixed cost to the nearest whole number). Show regression computation. (5 marks) (d) Cash budget (22 1/2 marks) [TOTAL 50 MARKS] NOTE: Ensure your presentation has cell referencing and formulas. Marks are awarded for these. Jamaica Portraits Ltd Budgeting Project Lionel Messi, president of Jamaica Portraits Ltd, was just concluding a budget meeting with his senior staff. It was October of 2022, and the group was discussing the preparation of the firm's master budget for 2023 . "I've decided to go ahead and purchase the industrial robot we've been talking about. We'll make the acquisition on January 3 of next year, and 1 expect it will take most of the year to train the personnel and reorganize the production process to take full advantage of the new equipment." In response to a question about financing the acquisition, Messi replied as follows: "The robot will cost $250,000. There will also be an additional $50,000 in ancillary equipment to be purchased. We'll finance these purchases with a one-year $300,000 loan from CR7 Bank and Trust Company on January 2. I've negotiated a repayment schedule of four equal installments on the last day of each quarter. The interest rate will be 10 percent per annum on the reducing balance basis, and interest payments will be quarterly as well." With that, the meeting broke up. and the budget process was on. The following information was gathered: 1. Sales in the fourth guarter of 2022 and for all of 2023 by quarter is as follows: 2. Jamaica Portraits Ltd sales history indicates that 60 percent of all sales are on credit, with the remainder of the sales in cash. The compuny's collection experience shows that 80 percent of the credit sales are collected during the quarter in which the sale is made, while the remaining 20 percent is collected in the following quarter. 3. The company's direct material costs for the fourth quarter of 2022 and for each quarter in 2023 is projected to be as follows: 4. All direct-material purchases are made on account, and 80 percent of each quarter's purchases are paid in cash during the same quarter as the purchase. The other 20 percent is paid in the next quarter. 5. Indirect materials are purchased with cash as needed. Work-in-process is negligible. 2 6. The direct labour costs for each quarter of 2023 are projected to be as follows: 7. The following manufacturing overhead costs are budgeted for 2023 : 8. It is anticipated that a dividend of $50,000 will be declared and paid in cash each quarter. 9. The following relates to past selling and administrative expenses. This will be paid in cash. Use regression analysis to derive a cost function and use this cost function to estimate the selling and administrative cost. The expected sales in units for 2023 are as follows: Required: Prepare Jamaica Portraits Ltd cash budget for 2023 by quarter and in total for the year. The following are schedules and budgets you will need to provide, and the marks are indicated in parentheses. (a) Schedule of cash collected from customers. (12 1/2 marks) (b) Schedule of cash disbursement to suppliers for direct material. (10 marks) (c) Selling and administrative costs. (Round off variable cost to 2 decimal places and fixed cost to the nearest whole number). Show regression computation. (5 marks) (d) Cash budget (22 1/2 marks) [TOTAL 50 MARKS] NOTE: Ensure your presentation has cell referencing and formulas. Marks are awarded for these