only #8-10
#8 please show how borrowings is calculated.
#9 template
#10 template
The company's chief financial officer (CFO), in consultation with various managers across the organization has developed the following set of assumptions to help create the 2020 budget 1. The budgeted unit sales are 12,000 units, 37,000 units, 15,000 units, and 25,000 units for quarters 1-4, respectively. Notice that the company experiences peak sales in the second and fourth quarters. The budgeted selling price for the year is $32 per unit. The budgeted unit sales for the first quarter of 2021 is 13,000 units. 2. All sales are on credit. Uncollectible accounts are negligible and can be ignored. Seventy-five percent of all credit sales are collected in the quarter of the sale and 25% are collected in the subsequent quarter. 3. Each quarter's ending finished goods inventory should equal 15% of the next quarter's unit sales. 4. Each unit of finished goods requires 3.5 yards of raw material that costs $3.00 per yard. Each quarter's ending raw materials inventory should equal 10% of the next quarter's production needs. The estimated ending raw materials inventory on December 31, 2020 is 5,000 yards. 5. Seventy percent of each quarter's purchases are paid for in the quarter of purchase. The remaining 30% of each quarter's purchases are paid in the following quarter 6. Direct laborers are paid $18 an hour and each unit of finished goods requires 0.25 direct labor hours to complete. All direct labor costs are paid in the quarter incurred. 7. The budgeted variable manufacturing overhead per direct labor-hour is $3.00. The quarterly fixed manufacturing overhead is $150,000 including $20,000 of depreciation on equipment. The number of direct labor-hours is used as the allocation base for the budgeted plantwide overhead rate. All overhead costs (excluding depreciation) are paid in the quarter incurred. The budgeted variable selling and administrative expense is $1.25 per unit sold. The fixed selling and administrative expenses per quarter include advertising ($25,000), executive salaries (564,000), insurance (512,000), property tax ($8,000), and depreciation expense (58,000). All selling and administrative expenses (excluding depreciation) are paid in the quarter incurred The company plans to maintain a minimum cash balance at the end of each quarter of $30,000 Assume that any borrowings take place on the first day of the quarter. To the extent possible, the company will repay principal and interest on any borrowings on the last day of the fourth quarter The company's lender imposes a simple interest rate of 3% per quarter on any borrowings. 10. Dividends of $15,000 will be declared and paid in each quarter 11. The company uses a last-in, first out (LIFO) inventory Now assumption. This means that the most recently purchased raw materials are the first out to production and the most recently completed finished goods are the first-out' to customers. Required: The company's CFO has asked you to prepare the 2020 master budget. To fulfill this request, prepare the following budget schedules and financial statements. Your leader mandates that all data be linked to only budget assumptions and related schedules. All of the schedules must be formula driven. NO HARD CELLS. The schedules must be created in Excel. A template is provided in Moodle. Each schedule will be on a different tab as indicated by name. DO NOT move the tabs, reorganize the tabs, or rename the tabs Submit the file upon completion using the Moodle link. Refer to Ch. 8 in the textbook for formatting the schedules for each requirement. 1. Quarterly sales budget including a schedule of expected cash collections 2. Quarterly production budget. 3. Quarterly direct materials budget including a schedule of expected cash disbursements for purchases of materials. 4. Quarterly direct labor budget. 5. Quarterly manufacturing overhead budget. 6. Ending finished goods inventory budget at December 31, 2020. (LIFO inventory assumption) 7. Quarterly selling and administrative expense budget 8. Quarterly cash budget. Determine any borrowing that would be needed to maintain the minimum cash balance as indicated in your data set. (This will require the use of an 'Ir statement in Excel.) 9. Income statement for the year ended December 31, 2020. 10. Balance sheet at December 31, 2020. MIT In 3 4 Year 46200 548.000 594,200 291,287 72,225 142,038 124,000 5 Beginning cash balance 6 add cash receipts: 7 Collections from customers 8 Total cash available 9 Less cash disbursements: 10 Direct materials 11 Direct Labor 12 Manufactoring overhead 13 Selling and administrative 14 Equipment purhchases 15 Dividens 16 Total cash disbursements 17 Excess (deficency) of cash available over disbursements 18 Financing 19 Borrowings (at the beginning of quarters) 20 Repayments ( at the end of the year) 21 Interest 22 Total financing 23 Ending cash balance 24 15.000 644550 (50,350) . Hampton Freeze, Inc. Budgeted Income Statement For the Year Ended December 31, 2017 Schedules 1,6 6 Sales Cost of goods sold Gross margin 9 Selling and administrative expenses 10 Net operating Income 11 Interest expense 12 Net Income $ 2,000,000 1 300.000 700,000 576.000 124,000 21.900 $ 102, 100 Schedule 7 Schedule 8 Schedule 9 s BC DE Hampton Freeze, Inc. Budgeted Balance Sheet December 31, 2017 on WN- $ 204,900 Assets 8 Current assets: 7 Cash $ 41,400 (a) Accounts receivable 120.000 (b) 9 Raw materials inventory 4.500 (0) 10 Finished goods inventory 39.000 (d) 11 Total current assets 12 Plant and equipment: 13 Land 80,000 (e) 14 Buildings and equipment 830,000 (0) 15 Accumulated depreciation (392.000 (9) 16 Plant and equipment, net 17 Total assets 18 19 Liabilities and Stockholders' Equity 20 Current liabilities: 21 Accounts payable (raw materials) 22 Stockholders' equity 23 Common stock, no par $ 175,000 (0) 24 Retained earnings 520,000 (0) 25 Total stockholders' equity 26 Total liabilities and stockholders' equity 518,000 $ 722.900 $ 27,900 (h) 695.000 $ 722.900 27 H M Schedule 8 Schedule 9 Schedule 1000 The company's chief financial officer (CFO), in consultation with various managers across the organization has developed the following set of assumptions to help create the 2020 budget 1. The budgeted unit sales are 12,000 units, 37,000 units, 15,000 units, and 25,000 units for quarters 1-4, respectively. Notice that the company experiences peak sales in the second and fourth quarters. The budgeted selling price for the year is $32 per unit. The budgeted unit sales for the first quarter of 2021 is 13,000 units. 2. All sales are on credit. Uncollectible accounts are negligible and can be ignored. Seventy-five percent of all credit sales are collected in the quarter of the sale and 25% are collected in the subsequent quarter. 3. Each quarter's ending finished goods inventory should equal 15% of the next quarter's unit sales. 4. Each unit of finished goods requires 3.5 yards of raw material that costs $3.00 per yard. Each quarter's ending raw materials inventory should equal 10% of the next quarter's production needs. The estimated ending raw materials inventory on December 31, 2020 is 5,000 yards. 5. Seventy percent of each quarter's purchases are paid for in the quarter of purchase. The remaining 30% of each quarter's purchases are paid in the following quarter 6. Direct laborers are paid $18 an hour and each unit of finished goods requires 0.25 direct labor hours to complete. All direct labor costs are paid in the quarter incurred. 7. The budgeted variable manufacturing overhead per direct labor-hour is $3.00. The quarterly fixed manufacturing overhead is $150,000 including $20,000 of depreciation on equipment. The number of direct labor-hours is used as the allocation base for the budgeted plantwide overhead rate. All overhead costs (excluding depreciation) are paid in the quarter incurred. The budgeted variable selling and administrative expense is $1.25 per unit sold. The fixed selling and administrative expenses per quarter include advertising ($25,000), executive salaries (564,000), insurance (512,000), property tax ($8,000), and depreciation expense (58,000). All selling and administrative expenses (excluding depreciation) are paid in the quarter incurred The company plans to maintain a minimum cash balance at the end of each quarter of $30,000 Assume that any borrowings take place on the first day of the quarter. To the extent possible, the company will repay principal and interest on any borrowings on the last day of the fourth quarter The company's lender imposes a simple interest rate of 3% per quarter on any borrowings. 10. Dividends of $15,000 will be declared and paid in each quarter 11. The company uses a last-in, first out (LIFO) inventory Now assumption. This means that the most recently purchased raw materials are the first out to production and the most recently completed finished goods are the first-out' to customers. Required: The company's CFO has asked you to prepare the 2020 master budget. To fulfill this request, prepare the following budget schedules and financial statements. Your leader mandates that all data be linked to only budget assumptions and related schedules. All of the schedules must be formula driven. NO HARD CELLS. The schedules must be created in Excel. A template is provided in Moodle. Each schedule will be on a different tab as indicated by name. DO NOT move the tabs, reorganize the tabs, or rename the tabs Submit the file upon completion using the Moodle link. Refer to Ch. 8 in the textbook for formatting the schedules for each requirement. 1. Quarterly sales budget including a schedule of expected cash collections 2. Quarterly production budget. 3. Quarterly direct materials budget including a schedule of expected cash disbursements for purchases of materials. 4. Quarterly direct labor budget. 5. Quarterly manufacturing overhead budget. 6. Ending finished goods inventory budget at December 31, 2020. (LIFO inventory assumption) 7. Quarterly selling and administrative expense budget 8. Quarterly cash budget. Determine any borrowing that would be needed to maintain the minimum cash balance as indicated in your data set. (This will require the use of an 'Ir statement in Excel.) 9. Income statement for the year ended December 31, 2020. 10. Balance sheet at December 31, 2020. MIT In 3 4 Year 46200 548.000 594,200 291,287 72,225 142,038 124,000 5 Beginning cash balance 6 add cash receipts: 7 Collections from customers 8 Total cash available 9 Less cash disbursements: 10 Direct materials 11 Direct Labor 12 Manufactoring overhead 13 Selling and administrative 14 Equipment purhchases 15 Dividens 16 Total cash disbursements 17 Excess (deficency) of cash available over disbursements 18 Financing 19 Borrowings (at the beginning of quarters) 20 Repayments ( at the end of the year) 21 Interest 22 Total financing 23 Ending cash balance 24 15.000 644550 (50,350) . Hampton Freeze, Inc. Budgeted Income Statement For the Year Ended December 31, 2017 Schedules 1,6 6 Sales Cost of goods sold Gross margin 9 Selling and administrative expenses 10 Net operating Income 11 Interest expense 12 Net Income $ 2,000,000 1 300.000 700,000 576.000 124,000 21.900 $ 102, 100 Schedule 7 Schedule 8 Schedule 9 s BC DE Hampton Freeze, Inc. Budgeted Balance Sheet December 31, 2017 on WN- $ 204,900 Assets 8 Current assets: 7 Cash $ 41,400 (a) Accounts receivable 120.000 (b) 9 Raw materials inventory 4.500 (0) 10 Finished goods inventory 39.000 (d) 11 Total current assets 12 Plant and equipment: 13 Land 80,000 (e) 14 Buildings and equipment 830,000 (0) 15 Accumulated depreciation (392.000 (9) 16 Plant and equipment, net 17 Total assets 18 19 Liabilities and Stockholders' Equity 20 Current liabilities: 21 Accounts payable (raw materials) 22 Stockholders' equity 23 Common stock, no par $ 175,000 (0) 24 Retained earnings 520,000 (0) 25 Total stockholders' equity 26 Total liabilities and stockholders' equity 518,000 $ 722.900 $ 27,900 (h) 695.000 $ 722.900 27 H M Schedule 8 Schedule 9 Schedule 1000
