Pedro's Pizza makes frozen pizza dough. The company just finished its first year of operation (12 months, Jan-Dec). The following is its traditional income statement and Balance Sheet Sales (15,000 units) CGS $ 300,000 180.000 $ 120,000 Gross Profit $30,000 30,000 6.000 $54.000 Sales Commissions Salaries Depreciation expense Net Income Cash $5,000 5,000 9,000 Inventory - Finished Goods 3,000 60,000 ( 6.000) $76.000 AP $3,000 7,000 AR Credit Line Inventory-Raw Mat Common Stock 12,000 Retained Earn 54,000 Equipment Acc Depreciation Total Assets Total L & Eq SZ6.000 VCP wants to prepare a cash budget for the first 3 months of the next year. Use the following estimates: The quantity sold is projected to increase 4% for the ycar. Price will increase 5%. Sales are spread evenly throughout the year. CGS should be calculated on a FIFO basis. 25% of sales is collected in the month of sale; the remainder is collected the next month. Inventory: o Last ycar's Finished Goods and Cost of Goods Sold had a constant cost per unit. o. All raw materials is purchased on credit ($1.50 per lb) and is the same price as last year. Each product requires 2.5 lbs). o Ending inventory for both should be 40% of next month's activity (activity is constant). o Beginning and ending WIP is zero 20% of purchases are paid in the month of purchase, 80% in the following. All other expenses are paid with cash. Direct Labor is 0.2 hours per product at $30 per hour. Variable Overhead is $2.25 per product. Fixed Overhead is zero. The credit line is used for cash shortfalls. Excess cash will pay down this line. Interest is 1% per month of last month's balance. Projections are to buy $6000 of new equipment at the end of January. Equipment is depreciated straight-line to zero salvage over 5 years. All of this is used in administration. Sales commission rate will remain the same. Salaries will increase by 4%. VCP wants to maintain a minimum cash balance of at least $5,000. Excess to repay credit line. AT a. Sales A/R Collections (10 points) Jan Feb Mar New Price Sales (units) Sales ($s) AR Beg Bal Sales (Ss) Collections AR End Balance b. Finished Goods/Production (Patties) (10 points) Jan Feb Mar Beginning Unit Cost Beg Inv (units) Sales (units) Req ending Bal (units) Production (units) Actual Ending Finished goods Balance (units) c. DM/RM (Beef) Inventory/Purchases (10 points) Jan Feb Mar Beginning Raw materials (units) Needed for Production (units) Minimum Required Inventory (units) Purchases (units) Purchases ($) Actual Ending Inventory Balance (units) Ending Balance (S) d. Capital Purchases (10 points) Jan Feb Mar Capital Purchases Equip Balance Depreciation Acc. Depreciation c. Cost of Goods Manufactured (10 points) Jan Feb Mar DM used (units) DM used (Ss) DL VOH FOH Total Cost per unit f. Cost of Goods Sold/Ending Finished Goods (FIFO) (10 points) Mar Jan Feb Beg FG (units) Cost per unit, BEG FG Quantity produced (units) Cost per produced unit Quantity of Units sold Cost of Goods Sold Units in Ending FG Cost of Ending FG g. AP/Cash Payments (10 points) Jan Feb Mar AP Beg Bal Purchases (Ss) AP Payments AP End Balance h. Cash Budget/Interest/Credit line (10 points) Jan Feb Mar Cash Beg Bal Collections AP Payments Other Cash Payments: Cash subtotal i. Credit Line/Borrowing/Repay (10 points) Credit Line Beginning balance Borrowing/(Repayment) of credit line Credit Line Ending balance Cash ending balance Pedro's Pizza makes frozen pizza dough. The company just finished its first year of operation (12 months, Jan-Dec). The following is its traditional income statement and Balance Sheet Sales (15,000 units) CGS $ 300,000 180.000 $ 120,000 Gross Profit $30,000 30,000 6.000 $54.000 Sales Commissions Salaries Depreciation expense Net Income Cash $5,000 5,000 9,000 Inventory - Finished Goods 3,000 60,000 ( 6.000) $76.000 AP $3,000 7,000 AR Credit Line Inventory-Raw Mat Common Stock 12,000 Retained Earn 54,000 Equipment Acc Depreciation Total Assets Total L & Eq SZ6.000 VCP wants to prepare a cash budget for the first 3 months of the next year. Use the following estimates: The quantity sold is projected to increase 4% for the ycar. Price will increase 5%. Sales are spread evenly throughout the year. CGS should be calculated on a FIFO basis. 25% of sales is collected in the month of sale; the remainder is collected the next month. Inventory: o Last ycar's Finished Goods and Cost of Goods Sold had a constant cost per unit. o. All raw materials is purchased on credit ($1.50 per lb) and is the same price as last year. Each product requires 2.5 lbs). o Ending inventory for both should be 40% of next month's activity (activity is constant). o Beginning and ending WIP is zero 20% of purchases are paid in the month of purchase, 80% in the following. All other expenses are paid with cash. Direct Labor is 0.2 hours per product at $30 per hour. Variable Overhead is $2.25 per product. Fixed Overhead is zero. The credit line is used for cash shortfalls. Excess cash will pay down this line. Interest is 1% per month of last month's balance. Projections are to buy $6000 of new equipment at the end of January. Equipment is depreciated straight-line to zero salvage over 5 years. All of this is used in administration. Sales commission rate will remain the same. Salaries will increase by 4%. VCP wants to maintain a minimum cash balance of at least $5,000. Excess to repay credit line. AT a. Sales A/R Collections (10 points) Jan Feb Mar New Price Sales (units) Sales ($s) AR Beg Bal Sales (Ss) Collections AR End Balance b. Finished Goods/Production (Patties) (10 points) Jan Feb Mar Beginning Unit Cost Beg Inv (units) Sales (units) Req ending Bal (units) Production (units) Actual Ending Finished goods Balance (units) c. DM/RM (Beef) Inventory/Purchases (10 points) Jan Feb Mar Beginning Raw materials (units) Needed for Production (units) Minimum Required Inventory (units) Purchases (units) Purchases ($) Actual Ending Inventory Balance (units) Ending Balance (S) d. Capital Purchases (10 points) Jan Feb Mar Capital Purchases Equip Balance Depreciation Acc. Depreciation c. Cost of Goods Manufactured (10 points) Jan Feb Mar DM used (units) DM used (Ss) DL VOH FOH Total Cost per unit f. Cost of Goods Sold/Ending Finished Goods (FIFO) (10 points) Mar Jan Feb Beg FG (units) Cost per unit, BEG FG Quantity produced (units) Cost per produced unit Quantity of Units sold Cost of Goods Sold Units in Ending FG Cost of Ending FG g. AP/Cash Payments (10 points) Jan Feb Mar AP Beg Bal Purchases (Ss) AP Payments AP End Balance h. Cash Budget/Interest/Credit line (10 points) Jan Feb Mar Cash Beg Bal Collections AP Payments Other Cash Payments: Cash subtotal i. Credit Line/Borrowing/Repay (10 points) Credit Line Beginning balance Borrowing/(Repayment) of credit line Credit Line Ending balance Cash ending balance Pedro's Pizza makes frozen pizza dough. The company just finished its first year of operation (12 months, Jan-Dec). The following is its traditional income statement and Balance Sheet Sales (15,000 units) CGS $ 300,000 180.000 $ 120,000 Gross Profit $30,000 30,000 6.000 $54.000 Sales Commissions Salaries Depreciation expense Net Income Cash $5,000 5,000 9,000 Inventory - Finished Goods 3,000 60,000 ( 6.000) $76.000 AP $3,000 7,000 AR Credit Line Inventory-Raw Mat Common Stock 12,000 Retained Earn 54,000 Equipment Acc Depreciation Total Assets Total L & Eq SZ6.000 VCP wants to prepare a cash budget for the first 3 months of the next year. Use the following estimates: The quantity sold is projected to increase 4% for the ycar. Price will increase 5%. Sales are spread evenly throughout the year. CGS should be calculated on a FIFO basis. 25% of sales is collected in the month of sale; the remainder is collected the next month. Inventory: o Last ycar's Finished Goods and Cost of Goods Sold had a constant cost per unit. o. All raw materials is purchased on credit ($1.50 per lb) and is the same price as last year. Each product requires 2.5 lbs). o Ending inventory for both should be 40% of next month's activity (activity is constant). o Beginning and ending WIP is zero 20% of purchases are paid in the month of purchase, 80% in the following. All other expenses are paid with cash. Direct Labor is 0.2 hours per product at $30 per hour. Variable Overhead is $2.25 per product. Fixed Overhead is zero. The credit line is used for cash shortfalls. Excess cash will pay down this line. Interest is 1% per month of last month's balance. Projections are to buy $6000 of new equipment at the end of January. Equipment is depreciated straight-line to zero salvage over 5 years. All of this is used in administration. Sales commission rate will remain the same. Salaries will increase by 4%. VCP wants to maintain a minimum cash balance of at least $5,000. Excess to repay credit line. AT a. Sales A/R Collections (10 points) Jan Feb Mar New Price Sales (units) Sales ($s) AR Beg Bal Sales (Ss) Collections AR End Balance b. Finished Goods/Production (Patties) (10 points) Jan Feb Mar Beginning Unit Cost Beg Inv (units) Sales (units) Req ending Bal (units) Production (units) Actual Ending Finished goods Balance (units) c. DM/RM (Beef) Inventory/Purchases (10 points) Jan Feb Mar Beginning Raw materials (units) Needed for Production (units) Minimum Required Inventory (units) Purchases (units) Purchases ($) Actual Ending Inventory Balance (units) Ending Balance (S) d. Capital Purchases (10 points) Jan Feb Mar Capital Purchases Equip Balance Depreciation Acc. Depreciation c. Cost of Goods Manufactured (10 points) Jan Feb Mar DM used (units) DM used (Ss) DL VOH FOH Total Cost per unit f. Cost of Goods Sold/Ending Finished Goods (FIFO) (10 points) Mar Jan Feb Beg FG (units) Cost per unit, BEG FG Quantity produced (units) Cost per produced unit Quantity of Units sold Cost of Goods Sold Units in Ending FG Cost of Ending FG g. AP/Cash Payments (10 points) Jan Feb Mar AP Beg Bal Purchases (Ss) AP Payments AP End Balance h. Cash Budget/Interest/Credit line (10 points) Jan Feb Mar Cash Beg Bal Collections AP Payments Other Cash Payments: Cash subtotal i. Credit Line/Borrowing/Repay (10 points) Credit Line Beginning balance Borrowing/(Repayment) of credit line Credit Line Ending balance Cash ending balance Pedro's Pizza makes frozen pizza dough. The company just finished its first year of operation (12 months, Jan-Dec). The following is its traditional income statement and Balance Sheet Sales (15,000 units) CGS $ 300,000 180.000 $ 120,000 Gross Profit $30,000 30,000 6.000 $54.000 Sales Commissions Salaries Depreciation expense Net Income Cash $5,000 5,000 9,000 Inventory - Finished Goods 3,000 60,000 ( 6.000) $76.000 AP $3,000 7,000 AR Credit Line Inventory-Raw Mat Common Stock 12,000 Retained Earn 54,000 Equipment Acc Depreciation Total Assets Total L & Eq SZ6.000 VCP wants to prepare a cash budget for the first 3 months of the next year. Use the following estimates: The quantity sold is projected to increase 4% for the ycar. Price will increase 5%. Sales are spread evenly throughout the year. CGS should be calculated on a FIFO basis. 25% of sales is collected in the month of sale; the remainder is collected the next month. Inventory: o Last ycar's Finished Goods and Cost of Goods Sold had a constant cost per unit. o. All raw materials is purchased on credit ($1.50 per lb) and is the same price as last year. Each product requires 2.5 lbs). o Ending inventory for both should be 40% of next month's activity (activity is constant). o Beginning and ending WIP is zero 20% of purchases are paid in the month of purchase, 80% in the following. All other expenses are paid with cash. Direct Labor is 0.2 hours per product at $30 per hour. Variable Overhead is $2.25 per product. Fixed Overhead is zero. The credit line is used for cash shortfalls. Excess cash will pay down this line. Interest is 1% per month of last month's balance. Projections are to buy $6000 of new equipment at the end of January. Equipment is depreciated straight-line to zero salvage over 5 years. All of this is used in administration. Sales commission rate will remain the same. Salaries will increase by 4%. VCP wants to maintain a minimum cash balance of at least $5,000. Excess to repay credit line. AT a. Sales A/R Collections (10 points) Jan Feb Mar New Price Sales (units) Sales ($s) AR Beg Bal Sales (Ss) Collections AR End Balance b. Finished Goods/Production (Patties) (10 points) Jan Feb Mar Beginning Unit Cost Beg Inv (units) Sales (units) Req ending Bal (units) Production (units) Actual Ending Finished goods Balance (units) c. DM/RM (Beef) Inventory/Purchases (10 points) Jan Feb Mar Beginning Raw materials (units) Needed for Production (units) Minimum Required Inventory (units) Purchases (units) Purchases ($) Actual Ending Inventory Balance (units) Ending Balance (S) d. Capital Purchases (10 points) Jan Feb Mar Capital Purchases Equip Balance Depreciation Acc. Depreciation c. Cost of Goods Manufactured (10 points) Jan Feb Mar DM used (units) DM used (Ss) DL VOH FOH Total Cost per unit f. Cost of Goods Sold/Ending Finished Goods (FIFO) (10 points) Mar Jan Feb Beg FG (units) Cost per unit, BEG FG Quantity produced (units) Cost per produced unit Quantity of Units sold Cost of Goods Sold Units in Ending FG Cost of Ending FG g. AP/Cash Payments (10 points) Jan Feb Mar AP Beg Bal Purchases (Ss) AP Payments AP End Balance h. Cash Budget/Interest/Credit line (10 points) Jan Feb Mar Cash Beg Bal Collections AP Payments Other Cash Payments: Cash subtotal i. Credit Line/Borrowing/Repay (10 points) Credit Line Beginning balance Borrowing/(Repayment) of credit line Credit Line Ending balance Cash ending balance