Master Budget......

Subject: Cost Accounting 430

Air Boat Inc.

Prepare the quarterly sales and production-related budgets using the exhibit formats referenced below: Sales budget (Exhibit 9 .1) Production budget (Exhibit 9.2) Direct materials purchases budget (Exhibit 9.3) Direct labor budget (Exhibit 9.4) Manufacturing overhead budget (Exhibit 9.5) b. Prepare a quarterly selling and administrative budget. c. Prepare a quarterly budgeted income statement. d. Prepare a quarterly capital expenditures budget. e. Prepare a quarterly cash budget using the format shown in Exhibit 9.9. f. Prepare a budgeted balance sheet at December 31. (Hint: Cash will have a negative balance.) g. Review the cash budget for Air Boats Inc. What issue is facing the treasurer, and how might this issue be resolved?