or requirement six - you need to list the months at the top like you did plus list the months on the side. If you do not list the months out in the manner you will not account for the timing of November sales (on credit) that the cash was actually received in January.

Since the case study only asks for you to look at the cash inflows (receipts) and cash outflows (disbursements) for the first quarter - you only need to enter January, February and March at the top of your columns on requirement 6.

On the sides (rows) - this is were you will list the months

So across the top you will list January February and March

on the side (in the rows) you should list November December January February and March

So redo - both your cash receipts and your cash disbursements in this manner - and then submit this part to me.

So for example in January - you will receive the effects of cash inflow from the following months: November times 15% to be received in cash during the month of January. December sales times 35% to be received in cash during the month of January, and the January sales times 50% to be received in cash during the month of January.

So your excel spreadsheet should look like

January

Cash from November then enter the dollar figure

Cash from December then enter the dollar figure

Cash from January then enter the dollar figure

Budgeting Problem (Case Study #3): Global Requirements for Budgeting: 1. Each budget needs to be prepared on a separate excel spreadsheet or spreadsheet page. (ie. You can include all of this information within one spreadsheet - just make sure that you label your budgets as follows (at least at the top of your budget spreadsheets): Sales, Production, Purchases, Direct Labor, Overhead, Cash Receipts and Cash Disbursements. As sample title of a budget would be: Sample Company Sales Budget for the First Quarter 2016 If you have supporting documentation that you would like to include to support your budgetary calculations, please refer to the support calculations - by either including the information at the bottom of your budget spreadsheet or in a separate spreadsheet properly labeled. 1. 2. 3. 4. 5. 6. Requirements for Budgeting Problem: Prepare a sales budget for the first quarter of 2016. Prepare a production budget for the first quarter of 2016. Prepare a purchases budget for the first quarter of 2016. Prepare a direct labor budget for the first quarter of 2016. Prepare an overhead budget for the first quarter of 2016. Prepare a cash receipts and disbursements budgets for the first quarter of 2016. Budgeting Problem: Tina's Fine Juices is a bottler of orange juice located in the Northeast. The company produces bottled orange juice from fruit concentrate purchased from suppliers in Florida, Arizona, and California. The only ingredients in the juice are water and concentrate. The juice is blended, pasteurized, and bottled for sales in 12-ounce plastic bottles. The process is heavily automated and is centered on five machines that control the mixing and bottling of the juice. The amounts of labor requires is very small per bottle of juice. The average workers can process 10 bottles of juice per minute, or 600 bottles per hour. The juice is sold by a number of grocery stores under their store brand name and in smaller restaurants, delis, and bagel shops under the name of Tina's Fine Juices. Tina's has been in business for several years and uses a sophisticated sales forecasting models based on prior sales, expected changes in demand, and economic factors affecting the industry. Sales of juice are highly seasonal, peaking in the first quarter of the calendar year. Forecasted sales for the last two months of 2015 and all of 2016 are as follows: 2015 November December Bottles 375,000 370,000 2016 January February March April May June July August September October November December Bottles 350,000 425,000 400,000 395,000 375,000 350,000 375,000 385,000 395,000 405,000 400,000 365,000 Other information that relates to Tina's Fine Juices: A. Juice is sold for $1.05 per 12-ounce bottle, in cartons that each hold 50 bottles. B. Tina's Fine Juices tries to maintain at least 10 percentage of the next month's estimates sales in inventory at the end of each month. C. The company needs to prepare two purchases budgets - one for the concentrate used in its orange juice and one for the bottles that are purchases from an outside supplier. Tina' has determined that its takes 1 gallon of orange concentrate for every 32 bottles of finished product. Each gallon of concentrates costs $4.80. Tina's also requires 20 percent of next month's direct material needs to be on hand at the end of the budget period. Bottles can be purchase from an outside supplies for $0.10 each. D. Factory workers are paid an average of $15.00 per hour, including fringe benefits and payroll taxes. If the production schedule does not allow for full utilization of the workers and machine, one or more workers are temporarily moved to another department. E. Most of the production process is automated, the juice is mixed by machine, and machines do the bottling and packaging. Overhead costs are incurred almost entirely in the mixing and of bottling process. Consequently, Tina's separates variable overhead to products. F. Variable overhead costs will be in direct proportion of the number of bottles of juice produced, but fixed overhead costs will remain constant, regardless of production. For budgeting purposes, Tina's separates variable overhead from fixed overhead and calculates a predetermined overhead rate for variable manufacturing overhead costs. G. Variable overhead is estimated to be $438,000 for the year, and the production machines will run approximately 8,000 hours at the projected production volume for the year (4,775,000 bottles.) Therefore, Tina's determined overhead rate for variable overhead is $54.75 per machine hour ($438,000 /8,000 machine hours). Tina's has also estimated fixed overhead to be $1,480,000 per year ($123,333 per month,) of which $1,240,0000 per year ($103,000 per month) is depreciation on existing property, plant, and equipment. H. All of the company's sales are on account. Based on the company's experience in previous years, the company estimates that 50 percent of the sales each month will be paid for in the month of sale. The company also estimates that 35 percent of the month's sales will be collected in the month following sale and that 15 percent of each month's sales will be collected in the second month following sale. I. Tina's has a policy of paying 50 percent of the direct material purchase in the month of purchase and the balance in the month after purchase. Overhead costs are also paid 50 percent in the month they are incurred and 50 percent in the following month. J. Selling and administrative expenses are $100,000 per month and are paid in cash as they are incurred