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*********this is the FULL CASH RECIEPTS BUDGET**********

Total Sales (First Quarter) (Second Quarter) (Third Quarter) (Fourth Quarter) (Total)

Cash Receipts from Customers:

Accounts Receivable balance, December 31, 2018

1st Qtr - Cash sales

1st Qtr - Credit sales, collection of Qtr.1 sales in Qtr.1

1st Qtr - Credit sales, collection of Qtr.1 sales in Qtr. 2

2nd Qtr - Cash sales

2nd Qtr - Credit sales, collection of Qtr. 2 sales in Qtr. 2

2nd Qtr - Credit sales, collection of Qtr. 2 sales in Qtr. 3

3rd Qtr - Cash sales

3rd Qtr - Credit sales, collection of Qtr. 3 sales in Qtr. 3

3rd Qtr - Credit sales, collection of Qtr. 3 sales in Qtr. 4

4th Qtr - Cash sales

4th Qtr - Credit sales, collection of Qtr. 4 sales in Qtr. 4

Total cash receipts from customers

Accounts Receivable balance, December 31, 2019:

4th Qtr - Credit Sales, collection of Qtr. 4 sales in Qtr. 1 of 2020

********this is the FULL CASH PAYMENTS BUDGET***********

Total Direct Materials Purchase

Cash Payments

Direct Materials:

Accounts Payable balance, December 31, 2018

1st Qtr.-----Qtr. 1 direct materials purchases paid in Qtr.1

1st Qtr.-----Qtr. 1 direct material purchases paid in Qtr. 2

2nd Qtr.-----Qtr. 2 direct material purchases paid in Qtr 2.

2nd Qtr.-----Qtr. 2 direct material purchases paid in Qtr 3.

3rd Qtr.-----Qtr. 3 direct material purchases paid in Qtr 3.

3rd Qtr.-----Qtr. 3 direct material purchases paid in Qtr 4.

4th Qtr.-----Qtr. 4 direct material purchases paid in Qtr. 4

Total payments for direct materials

Direct Labor:

Total Payments For Direct Labor

Manufacturing Overhead:

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Total Payments For Manufacturing Overhead

Selling And Administrative Expenses:

(Fill In Blank)

(Fill In Blank)

(Fill In Blank)

(Fill In Blank)

Total Payments For Selling And Admin. Expenses

Income Taxes:

Total Payments For Income Taxes

Capital Expenditures:

Total Payments For Capital Expenditures

Total Cash Payments (Before Interest)

Accounts Payable Balance, December 31, 2019

4th Qtr - Qtr. 4 direct material purchases paid in Qtr 1. of 2020

Assets Current Assets: Cash $ $ 67,000 Accounts Receivable 50,000 Raw Materials Inventory 5,000 17,000 Finished Goods Inventory Total Current Assets $ 139,000 Property, Plant, and Equipment: Equipment 139,000 (39,000) 100,000 Less: Accumulated Depreciation $ 239,000 Total Assets Liabilities Current Liabilities: Accounts Payable $ 10,000 Stockholders' Equity $ Common Stock, no par 125,000 104,000 Retained Earnings ro 229,000 Total Stockholders' Equity r $ 239,000 Total Liabilities and Stockholders' Equity ing Print Done More Info t (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,400 tires for the first quarter and expected to increase by 100 tires per quarter. Cash sales are expected to be 40% of total sales, with the remaining 60% of sales on account. b. Finished Goods Inventory on December 31, 2018 consists of 500 tires at $34 each. C. Desired ending Finished Goods Inventory is 20% of the next quarter's sales; first quarter sales for 2020 are expected be 1,800 tires. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 1,000 pounds of rubber compound used to manufacture the tires. e. Direct materials requirements are 2 pounds of a rubber compound per tire. The cost of the compound is $5.00 per pound. f. Desired ending Raw Materials Inventory is 20% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019 is 1,000 pounds; indirect materials are insignificant and not considered for budgeting purposes. g. Each tire requires 0.30 hours of direct labor; direct labor costs average $16 per hour. h. Variable manufacturing overhead is $3 per tire. i. Fixed manufacturing overhead includes $5,500 per quarter in depreciation and $12,680 per quarter for other costs, such as utilities, insurance, and property taxes. j. Fixed selling and administrative expenses include $9,500 per quarter for salaries: $5,700 per quarter for rent; $1,200 per quarter for insurance; nd $1,500 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of sales. 1. Capital expenditures include $25,000 for new manufacturing equipment, to be purchased and paid in the first quarter. m. Cash receipts for sales on account are 65% in the quarter of the sale and 35% in the quarter following the sale: December 31, 2018, Accounts Receivable is received in the first quarter of 2019, uncollectible accounts are considered insignificant and not considered for budgeting purposes. La n. Direct materials purchases are paid 60% in the quarter purchased and 40% in the following quarter, December 31, 2018, Accounts Payable is paid in the first quarter of 2019. o. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. p. Income tax expense is projected at $3,000 per quarter and is paid in the quarter incurred. q. Grayson desires to maintain a minimum cash balance of $65,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter; principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 10% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Requirement 1. Prepare Grayson's operating budget and cash budget for 2019 by quarter. Required schedules and budgets include: sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budget. Manufacturing overhead costs are allocated based on direct labor hours. Round all calculations to the nearest dollar. Begin by preparing the sales budget Grayson Tire Company Sales Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be sold Sales price per un Total sales Prepare the production budget. Review the sales budget you prepared above. Grayson Tire Company Production Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Plus: Total tires needed Less: Budgeted tires to be produced Prepare the direct materials budget. Review the production budget you prepared above. Grayson Tire Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Direct materials per tire Direct materials needed for production Plus: Total direct materials needed Less Budgeted purchases of direct materials Direct materials cost per pound Budgeted cost of direct materials Dron Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, X.XX, and round all other amounts to the nearest whole number.) Review the production budget you prepared above. Grayson Tire Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Direct labor hours needed for production Budgeted direct labor cost Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing overhead.) Review the production budget you prepared above. Review the direct labor budget you prepared above. Grayson Tire Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total VOH cost per tire Budgeted VOH Budgeted FOH Depreciation Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Grayson Tire Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total VOH cost per tiro Budgeted VOH Budgeted FOH Depreciation Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Before preparing the cost of goods sold budget, calculate the projected manufacturing cost per tire for 2019. (Round all amounts to the nearest cent.) Total projected manufacturing cost per tire for 2019 Prepare the selling and administrative expense budget. Review the sales budget you prepared above. Grayson Tire Company Selling and Administrative Expense Budget For the Year Ended December 31, 2019 Second Third First Fourth Quarter Quarter Quarter Quarter Total Total budgeted selling and administrative expense