NEEDS BALANCE SHEET. The Diesel Dynamo Company is a high-tech diesel subsystem production business that produces technology accessories for trucks and other transport. The design of Diesel Dynamo products are unique and represent a breakthrough in the industry. The units Diesel Dynamo produces claim to provide for greater dependability, quality and longevity. The company is completing its third year of operations and is preparing to create a master budget for next year, 2017. The budget will detail each quarters activities and the activity for the year in total. Create: Cash Budget and Proforma Balance Sheet

Given:

The following are the budgets I answered, based on what are given above. I'm not sure if they're correct.

CASH BUDGET IS NEEDED. I don't know if this is right either.

And the Balance Sheet!

I really have a hard time with Plant and Equipment (how much did we start with and how much did we reduce the account by?)

ASSETS
Cash
Raw Materials Inventory
Work in Process Inventory
Finished Goods Inventory $6,261,454
Accounts Receivable (net) $1,253,450
Plant and Equipment ?????
Total Assets	xxxxxxxxxx
LIABILITIES AND STOCKHOLDER'S EQUITY
Accounts Payable
Common Stock
Retained Earnings
Total Equity	xxxxxxxxxxx

A SALES 4th Quarter 2017 43.000 1st Quarter 2018 37,100 2nd Quarter 2018 34,500 3rd Quarter 2018 31,000 4th Quarter 2018 43,000 Budgeted Sales in units Budgeted Selling Price $530 per production unit (Finished Good) RECEIVABLES Receivables Collection Schedule 91.50% quarter of sale 5.50% quarter following sale 3.00% uncollectible 100.00% Entire projected uncollectible receivables are written off each quarter Policy INVENTORY COSTS Direct Labor 4.5 hours 19.50 per direct labor hour $ Raw Materials 3 direct material units per finished good production unit 85.00 per raw material unit $ Variable Overhead $ 9.50 per Direct Labor Hour Fixed Overhead Depreciation Other Fixed Overhead $ 332,000 per quarter $950,000 Iper quarter Fixed Overhead Application Rate CALCULATE FROM PRODUCTION BUDGET INVENTORY ACCOUNTS 3rd 4th Quarter Ending Finished Goods Inventory in units 1st Quarter 15,000 2nd Quarter 19,000 Quarter 20,000 4th Quarter 15,000 9,000 Raw Materials Inventory Beginning Inventory 1/1/2018 Planned Ending Inventory Policy 28,436 units 26,000 units 25% of next quarters' needs for production is in ending Raw Materials Inventory Work In Process Inventory Beginning Inventory 1/1/2018 Planned Ending Inventory 2,850 2,850 Work In Process Inventory Beginning Inventory 1/1/2018 Planned Ending Inventory 2,850 2,850 Payment for Raw Materials Payment Policy 85% quarter of purchase 15% quarter following purchase OPERATING EXPENSES Wages and Salaries Payment Payment Policy 2 times monthly on the 15th and 30th Fully paid each month Variable Selling & Administrative Exp. 3.25% of selling price Fixed Selling & Administrative Exp Depreciation Other Selling & Administrative Exp $55,000 per quarter $180,000 per quarter CAPITAL EXPENDITURES Equipment Purchases $5,450,000 end of 4th quarter TREASURY ACTIVITIES Dividends to be Declared $400,000 per quarter Minimum Cash Balance $250,000 Required at end of every quarter Interest Rate for Investing (short-term) Interest Policy 3.50% Annually All of the ending cash balance for the quarter earns interest for the entire quarter All of the ending cash balance for the quarter remains in Cash at the beginning of the next quarter Interest Rate for borrowing Interest Policy 12% Annually $10,000 increments are used in borrowing and repayment, maintaining the minimum cash balance Borrowing occurs at the beginning of the quarter. Repayments occur at the end of the quarter. FLEXIBLE BUDGET Actual Units Produced First Quarter 43,000 units (use for Flexible Budget Tab only) Flexible Budget - Analyze at 2 Production Levels Production level 1 Production level 2 45,000 units 40,000 units FLEXIBLE BUDGET Actual Units Produced First Quarter 43,000 units (use for Flexible Budget Tab only) Flexible Budget - Analyze at 2 Production Levels Production level 1 Production level 2 45,000 units 40,000 units PRIOR YEAR RESULTS Diesel Dynamo Company Balance Sheet 12/31/2017 ASSETS Cash Inventory Accounts Receivable (net) Plant and Equipment $ $ $ $ $ 6,150,000 3,748,000 5,050,000 29,400,000 44,348,000 LIABILITIES AND EQUITY Accounts Payable Common Stock Retained Earnings $ $ $ $ 8,100,000 26,234,500 10,013,500 44,348,000 + SALES | 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Total Sales in Units Selling Price Sales Revenue 37,100 $530 $ 19,663,000 34,500 $530 $ 18,285,000 31,000 $530 $16,430,000 43,000 $530 $22.790,000 145,600 $530 $ 77,168,000 PRODUCTION Sales needs (Production Units) Ending Inventory Total Needs Beginning Inventory Total Production 1st Quarter 37,100 15,000 52,100 2nd Quarter 34,500 19,000 53,500 15,000 38,500 3rd Quarter 31,000 20,000 51,000 19,000 32,000 4th Quarter 43,000 15,000 58,000 20,000 38,000 Annual Total 145,600 15,000 160,600 52,100 160,600 1st Quarter 52,100 2nd Quarter 38,500 3rd Quarter 32,000 Annual Total 160,600 Direct Materials Purchases Budget Finished Goods Produced (units) DM needed per unit DM needed for production DM Ending Inventory Units Total DM needed DM Beginning Inventory DM Purchases in Units Purchase Cost per Unit Cost of DM Purchases DM = Direct Materials (i.e. raw materials) 156,300 28,875 185,175 28,436 156,739 $ 85.00 $ 13,322,815 115,500 24,000 139,500 28,875 110,625 $ 85.00 $9.403.125 96,000 28,500 124,500 24,000 100,500 $ 85.00 $ 8,542,500 4th Quarter 38,000 3 114,000 26,000 140,000 28,500 111,500 85.00 $ 9,477,500 481,800 26,000 507,800 28,436 479,364 $ 85.00 $ 40,745,940 Direct Labor Budget FG Units to be produced Hours Required/Unit Total Hours Required Hourly Labor Rate Direct Labor Cost 1st Quarter 52,100 4.50 234,450 $ 19.50 $4,571,775 2nd Quarter 38,500 4.50 173,250 $ 19.50 $3,378,375 3rd Quarter 32,000 4.50 144,000 $ 19.50 $2,808,000 4th Quarter 38,000 4.50 171,000 $ 19.50 $3,334,500 Annual Total 160,600 4.50 722,700 $ 19.50 $14,092,650 Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Total Budgeted Hours Variable Overhead Rate ($/hour) Budgeted Variable Overhead Budgeted Fixed Overhead without Depreciation Depreciation Total Overhead 234,450 $ 9.50 $2,227,275 $950,000 $332,000 $3,509,275 173,250 $ 9.50 $1,645,875 $950,000 $332,000 $2,927,875 144,000 $ 9.50 $1,368,000 $950,000 $332,000 $2,650,000 171,000 $ 9.50 $1,624,500 $950,000 $332,000 $2,906,500 722,700 $ 9.50 $6,865,650 $3,800,000 $1,328,000 $11,993,650 Selling & Administrative Expense Budget Planned Sales in Dollars Variable S&A rate % Per Unit Sold) Variable S&A Expense Fixed S&A Expense without depreciation Depreciation Total S&A Expense 1st Quarter 19,663,000 3.25% $639,048 $180,000 $55,000 $874,048 2nd Quarter 18,285,000 3.25% $594,263 $180,000 $55,000 $829,263 3rd Quarter 16,430,000 3.25% $533,975 $180,000 $55,000 $768,975 4th Quarter 22,790,000 3.25% $740,675 $180,000 $55,000 $975,675 Annual Total 77,168,000 3.25% $2,507,960 $720,000 $220,000 $3,447,960 | SCHEDULE OF CASH COLLECTIONS Annual Stude First Quarter 19,663,000 $ Second Quarter 18,285,000 $ Third Quarter 16,430,000 $ Fourth Quarter 22,790,000 $ Budgeted Sales in dollars $ 77,168,000 Collections in quarter of sale Collections in quarter following sale 1 Total Collections 17,991,645 $ 5,050,000 $ 23,041,645 $ 16,730,775 $ 1,081,465 $ 17,812,240 $ 15,033,450 $ 1,005,675 $ 16,039,125 $ 20,852,850 $ 70,608,720 903,650 $ 8,040,790 21,756,500 $ 78,649,510 Net Accounts Receivable Balance $ 1,081,465 $ 1,005,675 $ 903,650 $ 1,253,450 $ 1,253,450 $ 1,253,450 SCHEDULE OF CASH PAYMENTS Annual Stud First Quarter Second Quarter Third Quarter Quarter Fourth Quarter Raw Material Purchases 13,322,815 $ 9,403,125 $ 8,542,500 $ 9,477,500 $ 40,745,940 - Payments in quarter of purchase 1$ - Payments in quarter following purchase $ Total payments $ 11,324,392.75 $ 8,100,000 $ 19,424,393 $ 7,992,656.25 $ 1,998,422.25 $ 9,991,079 $ 7,261,125.00 $ 1,410,468.75 $ 8,671,594 $ 8,055,875.00$ 34,634,049 1,281,375.00 $ 12,790,266 9,337,250 $ 47,424,315 - Accounts payable balance $ 1,998,422.25 $ 1,410,468.75 $ 1,281,375.00 $ 1,421,625.00 $ 1,421,625 $ 1,421,625 - CASH BUDGET Annual First Quarter 6,150,000 $ Second Quarter 806,147 $ Third Quarter 1,491,736 $ Fourth Quarter 2,642,211 | $ 6,150,000 Beginning Cash Balance $ Cash Collections: From credit sales - Collections in quarter of sale $ Collections in quarter following sale $ Total Cash Available $ 17,991,645 $ 5,050,000 $ 29,191,645 $ 16,730,775 $ 1,081,465 $ 18,618,387 $ 15,033,450 $ 1,005,675$ 17,530,861 $ 20,852,850 $ 70,608,720 903,650 $ 8,040,790 24,398,711 $ 84,799,510 - Cash Disbursements: For Raw Materials - Payments in quarter of purchase $ Payments in quarter following purch $ Direct Labor $ Overhead Selling and Administrative Expense $ Equipment Purchases | Dividends $ Total Cash Disbursements 11,324,393 $ 8,100,000 $ 4,571,775$ 3,177,275$ 819,048 $ - $ 400,000 $ 28,392,490 $ 7,992,656 $ 1,998,422 $ 3,378,375 $ 2,595,875$ 774,263 $ 7,261,125 $ 1,410,469 $ 2,808,000 $ 2,318,000 $ 713,975 $ - $ 400,000 $ 14,911,569 $ 8,055,875 $ 34,634,049 1,281,375 $ 12,790,266 3,334,500 $ 14,092,650 2,574,500 $ 10,665,650 920,675$ 3,227,960 5,450,000 $ 5,450,000 400,000 $ 1,600,000 22,016,925 $ 82,460,575 400,000 $ 17,139,591 $ 799,155 $ 250,000 $ 549,155 $ 1,478,796 $ 250,000 $ 1,228,796 $ 2,619,292 $ 250,000 $ 2,369,292 $ 2,381,786$ 250,000 $ 2,131,786 $ 2,338,935 250,000 2,088,935 Net Cash Balance Minimum cash balance Excess (Deficiency) of Cash $ Leave Financing section empty: Financing: (should not be required) Borrowing Repayment Interest Total Financing Cash Increase (Decrease) Cash Balance before interest on balance $ Interest Earned on Cash Balance Cash Balance after interest on balance $ 799,155 $ 6,993 $ 806,147$ 1,478,796 $ 12,939 $ 1,491,736 $ 2,619,292$ 22,919 $ 2,642,211 $ 2,381,786 $ 20,841 $ 2,402,627$ 2,338,935 63,692 2,402,627 $ 2,402,627 - Grayed cells are not used. Fixed Manufacturing Overhead Rate Total Finished Goods Units Produced Total Fixed Overhead Fixed Manufacturing Overhead Rate | | 160,600 $5,128,000 $31.93 Ending Finished Goods Inventory-Absorption | Direct Material Direct Labor Variable Overhead Fixed Overhead Total product cost per unit manufactured Use Per Unit Costs 255.00 87.75 42.75 $31.93 417.43 Units in Ending Finished Goods Inventory Finished Goods Ending Inventory Value 15,000 6,261,454 Ending Finished Goods Inventory - Variable Direct Material Direct Labor Variable Overhead Variable Cost per unit manufactured Use Per Unit Costs 255.00 87.75 42.75 385.50 Units in Ending Finished Goods Inventory Finished Goods Ending Inventory Value 15,000 5,782,500 Grayed cells not used Cost of Goods Manufactured - Absorption For Year Ended 12/31/2018 Direct Materials: Beginning Inventory Direct Material Purchases Direct Materials Available Ending Inventory Direct Materials Used Direct Labor: Overhead: Total Manufacturing Costs Added Plus: Beginning Work in Process Inventory Total Manufacturing Costs Less: Ending Work in Process Inventory Cost of Goods Manufactured $ $ $ $ $ 2,419,910 40,745,940 43,165,850 2,210,000 40,955,850 40,955,850 $14,092,650 $11,993,650 67,042,150 2,850 67,045,000 2,850 67,042,150 Cost of Goods Manufactured - Variable For Year Ended 12/31/2018 $ Direct Materials Used Direct Labor Variable Overhead Total Variable Manufacturing Costs 40,955,850 $14,092,650 $6,865,650 1$ 61,914,150 Cost of Goods Sold - Absorption Finished Goods Beginning Inventory Cost of Goods Manufactured Finished Goods Ending Inventory Cost of Goods Sold 67,042,150 6,261,454 60,780,696 Cost of Goods Sold - Variable Finished Goods Beginning Inventory Cost of Goods Manufactured Finished Goods Ending Inventory Cost of Goods Sold $ 61,914,150 5,782,500 56,131,650 $ $ 77,168,000 60,780,696 16,387,304 Absorption Costing Income Statement For the Year Ended 12/31/2018 Revenue Less: Cost of Goods Sold Gross Margin Less: Operating Expenses Selling & Administrative Expense Bad Debt Expense Operating Income Plus: Interest Revenue Income Before Taxes 3,447,960 2,315,040 10,624,304 $63,692 10,687,995 $ $ 77,168,000 losos 56,131,650 2,507,960 2,315,040 Variable Costing Income Statement For the Year Ended 12/31/2018 Revenue Less: Variable Costs Variable Cost of Goods Sold Variable Selling & Administrative Bad Debt Expense Contribution Margin Less: Fixed Costs Fixed Manufacturing Cost Fixed Selling & Administrative Operating Income Plus: Interest Revenue Income Before Taxes $ $ 60,954,650 16,213,350 $ $ 5,128,000 940,000 $ $ 6,068,000 10,145,350 $63,692 10,209,042 $ Absorption Costing Statement of Retained Earnings For the Year Ended 12/31/2018 Retained Earnings 1/1/2018 10,013,500 Plus: Net Income 10,687,995 Less: Dividends 1,600,000 Retained Earnings 12/31/2018 19,101,495 A SALES 4th Quarter 2017 43.000 1st Quarter 2018 37,100 2nd Quarter 2018 34,500 3rd Quarter 2018 31,000 4th Quarter 2018 43,000 Budgeted Sales in units Budgeted Selling Price $530 per production unit (Finished Good) RECEIVABLES Receivables Collection Schedule 91.50% quarter of sale 5.50% quarter following sale 3.00% uncollectible 100.00% Entire projected uncollectible receivables are written off each quarter Policy INVENTORY COSTS Direct Labor 4.5 hours 19.50 per direct labor hour $ Raw Materials 3 direct material units per finished good production unit 85.00 per raw material unit $ Variable Overhead $ 9.50 per Direct Labor Hour Fixed Overhead Depreciation Other Fixed Overhead $ 332,000 per quarter $950,000 Iper quarter Fixed Overhead Application Rate CALCULATE FROM PRODUCTION BUDGET INVENTORY ACCOUNTS 3rd 4th Quarter Ending Finished Goods Inventory in units 1st Quarter 15,000 2nd Quarter 19,000 Quarter 20,000 4th Quarter 15,000 9,000 Raw Materials Inventory Beginning Inventory 1/1/2018 Planned Ending Inventory Policy 28,436 units 26,000 units 25% of next quarters' needs for production is in ending Raw Materials Inventory Work In Process Inventory Beginning Inventory 1/1/2018 Planned Ending Inventory 2,850 2,850 Work In Process Inventory Beginning Inventory 1/1/2018 Planned Ending Inventory 2,850 2,850 Payment for Raw Materials Payment Policy 85% quarter of purchase 15% quarter following purchase OPERATING EXPENSES Wages and Salaries Payment Payment Policy 2 times monthly on the 15th and 30th Fully paid each month Variable Selling & Administrative Exp. 3.25% of selling price Fixed Selling & Administrative Exp Depreciation Other Selling & Administrative Exp $55,000 per quarter $180,000 per quarter CAPITAL EXPENDITURES Equipment Purchases $5,450,000 end of 4th quarter TREASURY ACTIVITIES Dividends to be Declared $400,000 per quarter Minimum Cash Balance $250,000 Required at end of every quarter Interest Rate for Investing (short-term) Interest Policy 3.50% Annually All of the ending cash balance for the quarter earns interest for the entire quarter All of the ending cash balance for the quarter remains in Cash at the beginning of the next quarter Interest Rate for borrowing Interest Policy 12% Annually $10,000 increments are used in borrowing and repayment, maintaining the minimum cash balance Borrowing occurs at the beginning of the quarter. Repayments occur at the end of the quarter. FLEXIBLE BUDGET Actual Units Produced First Quarter 43,000 units (use for Flexible Budget Tab only) Flexible Budget - Analyze at 2 Production Levels Production level 1 Production level 2 45,000 units 40,000 units FLEXIBLE BUDGET Actual Units Produced First Quarter 43,000 units (use for Flexible Budget Tab only) Flexible Budget - Analyze at 2 Production Levels Production level 1 Production level 2 45,000 units 40,000 units PRIOR YEAR RESULTS Diesel Dynamo Company Balance Sheet 12/31/2017 ASSETS Cash Inventory Accounts Receivable (net) Plant and Equipment $ $ $ $ $ 6,150,000 3,748,000 5,050,000 29,400,000 44,348,000 LIABILITIES AND EQUITY Accounts Payable Common Stock Retained Earnings $ $ $ $ 8,100,000 26,234,500 10,013,500 44,348,000 + SALES | 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Total Sales in Units Selling Price Sales Revenue 37,100 $530 $ 19,663,000 34,500 $530 $ 18,285,000 31,000 $530 $16,430,000 43,000 $530 $22.790,000 145,600 $530 $ 77,168,000 PRODUCTION Sales needs (Production Units) Ending Inventory Total Needs Beginning Inventory Total Production 1st Quarter 37,100 15,000 52,100 2nd Quarter 34,500 19,000 53,500 15,000 38,500 3rd Quarter 31,000 20,000 51,000 19,000 32,000 4th Quarter 43,000 15,000 58,000 20,000 38,000 Annual Total 145,600 15,000 160,600 52,100 160,600 1st Quarter 52,100 2nd Quarter 38,500 3rd Quarter 32,000 Annual Total 160,600 Direct Materials Purchases Budget Finished Goods Produced (units) DM needed per unit DM needed for production DM Ending Inventory Units Total DM needed DM Beginning Inventory DM Purchases in Units Purchase Cost per Unit Cost of DM Purchases DM = Direct Materials (i.e. raw materials) 156,300 28,875 185,175 28,436 156,739 $ 85.00 $ 13,322,815 115,500 24,000 139,500 28,875 110,625 $ 85.00 $9.403.125 96,000 28,500 124,500 24,000 100,500 $ 85.00 $ 8,542,500 4th Quarter 38,000 3 114,000 26,000 140,000 28,500 111,500 85.00 $ 9,477,500 481,800 26,000 507,800 28,436 479,364 $ 85.00 $ 40,745,940 Direct Labor Budget FG Units to be produced Hours Required/Unit Total Hours Required Hourly Labor Rate Direct Labor Cost 1st Quarter 52,100 4.50 234,450 $ 19.50 $4,571,775 2nd Quarter 38,500 4.50 173,250 $ 19.50 $3,378,375 3rd Quarter 32,000 4.50 144,000 $ 19.50 $2,808,000 4th Quarter 38,000 4.50 171,000 $ 19.50 $3,334,500 Annual Total 160,600 4.50 722,700 $ 19.50 $14,092,650 Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual Total Budgeted Hours Variable Overhead Rate ($/hour) Budgeted Variable Overhead Budgeted Fixed Overhead without Depreciation Depreciation Total Overhead 234,450 $ 9.50 $2,227,275 $950,000 $332,000 $3,509,275 173,250 $ 9.50 $1,645,875 $950,000 $332,000 $2,927,875 144,000 $ 9.50 $1,368,000 $950,000 $332,000 $2,650,000 171,000 $ 9.50 $1,624,500 $950,000 $332,000 $2,906,500 722,700 $ 9.50 $6,865,650 $3,800,000 $1,328,000 $11,993,650 Selling & Administrative Expense Budget Planned Sales in Dollars Variable S&A rate % Per Unit Sold) Variable S&A Expense Fixed S&A Expense without depreciation Depreciation Total S&A Expense 1st Quarter 19,663,000 3.25% $639,048 $180,000 $55,000 $874,048 2nd Quarter 18,285,000 3.25% $594,263 $180,000 $55,000 $829,263 3rd Quarter 16,430,000 3.25% $533,975 $180,000 $55,000 $768,975 4th Quarter 22,790,000 3.25% $740,675 $180,000 $55,000 $975,675 Annual Total 77,168,000 3.25% $2,507,960 $720,000 $220,000 $3,447,960 | SCHEDULE OF CASH COLLECTIONS Annual Stude First Quarter 19,663,000 $ Second Quarter 18,285,000 $ Third Quarter 16,430,000 $ Fourth Quarter 22,790,000 $ Budgeted Sales in dollars $ 77,168,000 Collections in quarter of sale Collections in quarter following sale 1 Total Collections 17,991,645 $ 5,050,000 $ 23,041,645 $ 16,730,775 $ 1,081,465 $ 17,812,240 $ 15,033,450 $ 1,005,675 $ 16,039,125 $ 20,852,850 $ 70,608,720 903,650 $ 8,040,790 21,756,500 $ 78,649,510 Net Accounts Receivable Balance $ 1,081,465 $ 1,005,675 $ 903,650 $ 1,253,450 $ 1,253,450 $ 1,253,450 SCHEDULE OF CASH PAYMENTS Annual Stud First Quarter Second Quarter Third Quarter Quarter Fourth Quarter Raw Material Purchases 13,322,815 $ 9,403,125 $ 8,542,500 $ 9,477,500 $ 40,745,940 - Payments in quarter of purchase 1$ - Payments in quarter following purchase $ Total payments $ 11,324,392.75 $ 8,100,000 $ 19,424,393 $ 7,992,656.25 $ 1,998,422.25 $ 9,991,079 $ 7,261,125.00 $ 1,410,468.75 $ 8,671,594 $ 8,055,875.00$ 34,634,049 1,281,375.00 $ 12,790,266 9,337,250 $ 47,424,315 - Accounts payable balance $ 1,998,422.25 $ 1,410,468.75 $ 1,281,375.00 $ 1,421,625.00 $ 1,421,625 $ 1,421,625 - CASH BUDGET Annual First Quarter 6,150,000 $ Second Quarter 806,147 $ Third Quarter 1,491,736 $ Fourth Quarter 2,642,211 | $ 6,150,000 Beginning Cash Balance $ Cash Collections: From credit sales - Collections in quarter of sale $ Collections in quarter following sale $ Total Cash Available $ 17,991,645 $ 5,050,000 $ 29,191,645 $ 16,730,775 $ 1,081,465 $ 18,618,387 $ 15,033,450 $ 1,005,675$ 17,530,861 $ 20,852,850 $ 70,608,720 903,650 $ 8,040,790 24,398,711 $ 84,799,510 - Cash Disbursements: For Raw Materials - Payments in quarter of purchase $ Payments in quarter following purch $ Direct Labor $ Overhead Selling and Administrative Expense $ Equipment Purchases | Dividends $ Total Cash Disbursements 11,324,393 $ 8,100,000 $ 4,571,775$ 3,177,275$ 819,048 $ - $ 400,000 $ 28,392,490 $ 7,992,656 $ 1,998,422 $ 3,378,375 $ 2,595,875$ 774,263 $ 7,261,125 $ 1,410,469 $ 2,808,000 $ 2,318,000 $ 713,975 $ - $ 400,000 $ 14,911,569 $ 8,055,875 $ 34,634,049 1,281,375 $ 12,790,266 3,334,500 $ 14,092,650 2,574,500 $ 10,665,650 920,675$ 3,227,960 5,450,000 $ 5,450,000 400,000 $ 1,600,000 22,016,925 $ 82,460,575 400,000 $ 17,139,591 $ 799,155 $ 250,000 $ 549,155 $ 1,478,796 $ 250,000 $ 1,228,796 $ 2,619,292 $ 250,000 $ 2,369,292 $ 2,381,786$ 250,000 $ 2,131,786 $ 2,338,935 250,000 2,088,935 Net Cash Balance Minimum cash balance Excess (Deficiency) of Cash $ Leave Financing section empty: Financing: (should not be required) Borrowing Repayment Interest Total Financing Cash Increase (Decrease) Cash Balance before interest on balance $ Interest Earned on Cash Balance Cash Balance after interest on balance $ 799,155 $ 6,993 $ 806,147$ 1,478,796 $ 12,939 $ 1,491,736 $ 2,619,292$ 22,919 $ 2,642,211 $ 2,381,786 $ 20,841 $ 2,402,627$ 2,338,935 63,692 2,402,627 $ 2,402,627 - Grayed cells are not used. Fixed Manufacturing Overhead Rate Total Finished Goods Units Produced Total Fixed Overhead Fixed Manufacturing Overhead Rate | | 160,600 $5,128,000 $31.93 Ending Finished Goods Inventory-Absorption | Direct Material Direct Labor Variable Overhead Fixed Overhead Total product cost per unit manufactured Use Per Unit Costs 255.00 87.75 42.75 $31.93 417.43 Units in Ending Finished Goods Inventory Finished Goods Ending Inventory Value 15,000 6,261,454 Ending Finished Goods Inventory - Variable Direct Material Direct Labor Variable Overhead Variable Cost per unit manufactured Use Per Unit Costs 255.00 87.75 42.75 385.50 Units in Ending Finished Goods Inventory Finished Goods Ending Inventory Value 15,000 5,782,500 Grayed cells not used Cost of Goods Manufactured - Absorption For Year Ended 12/31/2018 Direct Materials: Beginning Inventory Direct Material Purchases Direct Materials Available Ending Inventory Direct Materials Used Direct Labor: Overhead: Total Manufacturing Costs Added Plus: Beginning Work in Process Inventory Total Manufacturing Costs Less: Ending Work in Process Inventory Cost of Goods Manufactured $ $ $ $ $ 2,419,910 40,745,940 43,165,850 2,210,000 40,955,850 40,955,850 $14,092,650 $11,993,650 67,042,150 2,850 67,045,000 2,850 67,042,150 Cost of Goods Manufactured - Variable For Year Ended 12/31/2018 $ Direct Materials Used Direct Labor Variable Overhead Total Variable Manufacturing Costs 40,955,850 $14,092,650 $6,865,650 1$ 61,914,150 Cost of Goods Sold - Absorption Finished Goods Beginning Inventory Cost of Goods Manufactured Finished Goods Ending Inventory Cost of Goods Sold 67,042,150 6,261,454 60,780,696 Cost of Goods Sold - Variable Finished Goods Beginning Inventory Cost of Goods Manufactured Finished Goods Ending Inventory Cost of Goods Sold $ 61,914,150 5,782,500 56,131,650 $ $ 77,168,000 60,780,696 16,387,304 Absorption Costing Income Statement For the Year Ended 12/31/2018 Revenue Less: Cost of Goods Sold Gross Margin Less: Operating Expenses Selling & Administrative Expense Bad Debt Expense Operating Income Plus: Interest Revenue Income Before Taxes 3,447,960 2,315,040 10,624,304 $63,692 10,687,995 $ $ 77,168,000 losos 56,131,650 2,507,960 2,315,040 Variable Costing Income Statement For the Year Ended 12/31/2018 Revenue Less: Variable Costs Variable Cost of Goods Sold Variable Selling & Administrative Bad Debt Expense Contribution Margin Less: Fixed Costs Fixed Manufacturing Cost Fixed Selling & Administrative Operating Income Plus: Interest Revenue Income Before Taxes $ $ 60,954,650 16,213,350 $ $ 5,128,000 940,000 $ $ 6,068,000 10,145,350 $63,692 10,209,042 $ Absorption Costing Statement of Retained Earnings For the Year Ended 12/31/2018 Retained Earnings 1/1/2018 10,013,500 Plus: Net Income 10,687,995 Less: Dividends 1,600,000 Retained Earnings 12/31/2018 19,101,495