Net income W21,000,000 Total assets W116,600,000 The company's cash budget shows an expected cash balance of 5,880,000 at December 31, 2020. All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2020, the company expects to purchase ad- ditional equipment costing W9,000,000 4,000,000 of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses. Kimje expects to pay w8.000.000 on the outstanding notes payable balance plus all interest due and payable to December 31 (included in interest expense W3.500.000, above). Accounts paya- ble at December 31, 2020, includes amounts due suppliers (see above) plus other accounts payable of W7.200,000. Unpaid income taxes at December 31 will be W5.000.000 Instructions Prepare a budgeted statement of cost of goods sold, budgeted multiple-step income statement and retained earnings statement for 2020, and a budgeted classified statement of financial position at December 31. 2020. Continuing Case Current Designs CD9 Diane Buswell is preparing the 2020 budget for one of Current Designs' rotomolded kayaks. Extensive meetings with members of the sales department and executive seam have resulted in the fol- lowing unit sales projections for 2020. Quarter 1 1.000 kayaks Quarter 2 1,500 kayaks Quarter 3 Quarter 4 750 kayaks 750 kayaks Current Designs' policy is to have finished goods ending inventory in a quarter equal to 20% of the next quarter's anticipated sales. Preliminary sales projections for 2021 are 1.100 units for the first quarter and 1.500 units for the second quarter. Ending inventory of finished goods at December 31, 2019, will be 200 rotomolded kayaks Production of each kayak requires 54 pounds of polyethylene powder and a finishing kit frope, seat, hardware, etc.). Company policy is that the ending inventory of polyethylene powder should be 25% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December 31, 2019, is 14.850 pounds. The finishing kits can be assembled as they are needed. As a result, Current Designs does not maintain a significant inventory of the finishing kits The polyethylene powder used in these kayaks costs $1.50 per pound, and the finishing kits cost $170 each. Production of a single kayak requires 2 hours of time by more experienced, type I employees and 3 hours of finishing time by type II employees. The type I employees are paid $15 per hour, and the type II employees are paid $12 per hour. Selling and administrative expenses for this line are expected to be 545 per unit sold plus $7.500 per quarter. Manufacturing overhead is assigned at 150% of labor costs. Instructions Prepare the production budget, direct materials budget, direct labor budget, manufacturing overhead budget, and selling and administrative budget for this product line by quarter and in total for 2020 Expand Your Critical Thinking Decision-Making Across the Organization CT9.1 Hwang Ltd. operates on a calendar-year basis. It begins the annual budgeting process in late August when the president establishes targets for the total sales and set income before taxes for the next year The sales target is given first to the marketing department. The marketing manager formulates a sales budget by product line in both units and dollars. From this budget, sales quotas by product line in