just 7-10 PLEASE.
The management of Nabar Manufacturing prepared the following estimated balance sheet for June 2017: NABAR MANUFACTURING Estimated Balance Sheet June 30, 2017 $ Assets Cash Accounts receivable ................. Raw materials inventory .............. Finished goods inventory ............. Total current assets ................ Equipment .................. . Accumulated depreciation ......... Equipment, net 40,000 249,900 35,000 241,080 565,980 720,000 (240,000) 480,000 Liabilities and Equity Accounts payable ... Income taxes payable.... Short-term notes payable .......... Total current liabilities ... Long-term note payable ........... Total liabilities Common stock .... Retained earnings ............ Total stockholders' equity .......... Total liabilities and equity $ 51,400 10,000 24,000 85,400 300,000 385,400 600,000 60,580 660,580 $1,045.980 Total assets.... $1,045,980 To prepare a master budget for July, August, and September of 2017, management gathers the following information: a. Sales were 20,000 units in June. Forecasted sales in units are as follows: July, 21.000; August, 19.000; September, 20,000; and October, 24,000. The product's selling price is $17 per unit and its total prod- uct cost is $14.35 per unit. b. Company policy calls for a given month's ending finished goods inventory to equal 70% of the next month's expected unit sales. The June 30 finished goods inventory is 16,800 units, which does not comply with the policy. c. Company policy calls for a given month's ending raw materials inventory to equal 20% of the next month's materials requirements. The June 30 raw materials inventory is 4.375 units (which also fails to meet the policy). The budgeted September 30 raw materials inventory is 1.980 units. Raw materials cost $8 per unit. Each finished unit requires 0.50 units of raw materials. d. Each finished unit requires 0.50 hours of direct labor at a rate of $16 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $2.70 per direct labor hour. Depreciation of $20,000 per month is treated as fixed factory overhead. f. Monthly general and administrative expenses include $9.000 administrative salaries and 0.9% monthly interest on the long-term note payable. g. Sales representatives' commissions are 10% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3,500. h. The company expects 30% of sales to be for cash and the remaining 70% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale). I. All raw materials purchases are on credit, and no payables arise from any other transactions. One month's raw materials purchases are fully paid in the next month. j. Dividends of $20,000 are to be declared and paid in August. k. Income taxes payable at June 30 will be paid in July, Income tax expense will be assessed at 35% in the quarter and paid in October 1. Equipment purchases of $100,000 are budgeted for the last day of September. m. The minimum ending cash balance for all months is $40,000. If necessary, the company borrows enough cash using a short-term note to reach the m o un. Short-term notes require an interest pay- ment of 1% at each month-end (before any repayment). It the ending cash balance exceeds the mini- mum, the excess will be applied to repaying the short-term roles payable balance. Required Prepare the following budgets and other financial in ons required. All budgets and other financial information should be prepared for the third calendar carte, except as otherwise noted below. Round calculations to the nearest whole dollar. 1. Sales budget. 7. General and administrative expense budget. 2. Production budget. 8. Cash budget. 3. Raw materials budget. 9. Budgeted income statement for the entire quarter (not 4. Direct labor budget. for each month separately). 5. Factory overhead budget. 10. Budgeted balance sheet as of September 30, 2017. 6. Selling expense budget. Cash Receipts from Customers July August September Total Total Sales Cash Sales (_%) Credit sales (% Cash Collections Month after sale Cash Sales Total Cash Received %) Budgeted Cash Payments for Purchases July August September Quarter Budget July August September Beginning Cash Balance Cash Receipts from Customers Total Cash Available Cash Disbursements: Payments for raw materials Payments for direct labor Payments for variable overhead Sales Commissions Sales Salaries General & Administrative Salaries Dividends Loan Interest Long Term note interest Equipment Purchases Income Taxes Total Cash Disbursements Preliminary cash balance Additional loan Repayment of loan to bank Ending Cash Balance Loan Balance, end of month Budgeted Income Statement NABAR Manufacturing Budgeted Income Statement For the Quarter ended September 30, 2017 October seted Balance Sheet NABAR Manufacturing Budgeted Balance Sheet 30-Sep-17 Note 1 Note 2 Note 3 Note 4 Note 5 ASSETS Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total current assets Equipment Less: accumulated depreciation Total Assets LIABILITIES AND EQUITY Accounts Payable Bank Loan Payable Taxes Payable Total current liabilities Long-term note payable Common stock Retained Earnings Total stockholders' equity Total Liabilities and Equity Note 6 Budgeted Statement of Retained Earnings NABAR Manufacturing Budgeted Statement of Retained Earnings For the Quarter Ended September 30, 2017 Retained earnings. Beginning Balance Add: Net Income Less: Dividends Retained earnings - Ending Balance