Phase Two: Now that you have developed your cost estimates, its time to do some budgeting for your new business.

1. Calculate the total amount of cash you will need to have before opening your business, in order to buy all necessary equipment and machines, to purchase all materials and supplies needed for the first three months of operations, and to pay your employees first three months wages. Assume that your parents have agreed to loan you this amount and only charge you 5% interest each year. The following information regarding cash payment needs for your variable and fixed costs are below:
   1. Variable costs: For every variable cost item, you decide to buy sufficient quantity for making the first 2,000 t-shirts. You also want to prepare sufficient amount of cash to pay for the labor costs needed for making the first 2,000 t-shirts. Assume you can pay your workers for a fraction of an hour but you cannot purchase a fraction of an ink-jet cartridge or a partial case/ream of paper.
   2. Fixed costs: Your initial amount of cash should be sufficient to pay for the first quarters cash needs for your fixed costs. For your fixed cost items, payments will be made according to below:
      1. Rent to the mall will be paid monthly
      2. Full payment to the artist, full payment for the computer and printer, and full payment for heat press machine will need to be made before you open for business.
      3. You will not pay yourself until the end of the first year of operations.

Prepare a cash budget for your company for the first year of operations. Assume that the selling price is $15/t-shirt and that 7,800 t-shirts will be made and sold in the first year. Assume all sales are cash sales and that all costs are paid in cash. Your cash balance on January 1 is the amount you are borrowing from your parents (amount calculated in step 1 above). Remember when calculating your manufacturing and selling & administrative expenses, that monthly depreciation on your equipment (i.e. computer & printer and heating press) is not a cash payment. You decide to keep a cash balance of $5,000 at the end of the year. You will use the extra cash to back the loan from your parents including the interest that is owed.

1. Based on the estimated sales level of 7,800 t-shirts for the first year, prepare your companys budgeted income statement for the first year of operations. Remember when calculating your cost of goods sold and selling & administrative amounts, that monthly depreciation on your equipment (i.e. computer & printer and heating press) is an expense to the company.

AutoSave Of H e r = Phase One (2) - Excel Search Paige Garrett PG - O x Comments File Home Insert Page Layout Formulas Data Review View Help QuickBooks Op alle Wrap Text EAY O Calibri 11 A A = == BI - DA EEE General | $ % Paste Share 5 Ideas LE E E E Merge & Center P2 Conditional Format as Cell Formatting Table Styles Styles Insert 9X Delete Format Cells 48,99 ' Sensitivity Sort & Find & Filter Select Editing Clipboard Font Alignment Number Ideas Sensitivity B93 - X for Selling price per T-shirt($15) / Variable cost per T-shirt($5.09) D E F G H I J K L M N O P Q R S T U V Cost Per T-Shirt 9 Variable costs and Expenses 10 (Round your numbers to the hundreth, ie. Sx.xx) Cost Items 12 Manufacturing 13 (1) White Cotton T-Shirts 14 Explanations: $3.75 15 Price is $3.75 Transfer Paper $0.40 17 (2) 18 Explanations: Cost $400/ Papers in one box= 400/1000 20 21 (3) 22 Explanations: Ink Jet $0.10 Cost $50/ Nunmber of prints 500= 50/500 Part-Time Employees $0.80 25 (4) 26 Explanations: Cost per hour $8 Number of shirts printed per hour=10; $8/10= $.80 28 29 Total Variable Manufacturing cost per T-Shirt: $5.05 31 Cost Items Cost Per T-Shirt Ink Jet $0.02 32 Non-Manufacturing 33 (1) 34 Explanations: 35 50/500= $.10 : $.10/5= $.02 Sheet1 5 @ - - - + 80% a Type here to search ^. 1:21 PM 1) 4/26/202026 AutoSave Of H e r = Phase One (2) - Excel Search Paige Garrett PG File Home Insert Page Layout Formulas Data Review View Help QuickBooks - O x Share Comments 5 MP Ideas Sensitivity === EAY O E. A O Calibri 11 AA BI - DA Wrap Text Merge & Center General | $ % Paste LE , 40.00 ' P B Conditional Format as Cell Formatting Table Styles Styles Insert 9X Delete Format Cells Sort & Find & Filter Select Editing Clipboard Font Alignment Number Ideas Sensitivity B93 X for Selling price per T-shirt ($15) / Variable cost per T-shirt($5.09) B C D E F G H I J K L M N O P Q R S T U V 30 Cost Items Cost Per T-Shirt 32 Non-Manufacturing 33 (1) 34 Explanations: Ink Jet $0.02 35 50/500= $.10 ;$.10/5= $.02 Sooz Laser Paper $0.02 37 (2) 38 Explanations: $20/200= $.10; $.10/5= $.20 41 Total Variable Non-Manufacturing costs per T-shirt: $0.04 43 Total Variable costs per T-shirt: $5.09 Cost Per Month 45 Fixed Costs and Expenses 46 (Round your numbers to the nearest whole dollar) Cost Items 48 Manufacturing 49 1) Rent 50 Explanations: 51 $2,500*90%=$2,250 $2,250.00 52 Annual Contract Fees $833.00 53 2) 54 Explanations: 55 56 57 (3) $10,000/12 Depreciation on computer & printer $150 Sheet1 5 @ - - - + 80% Type here to search o & em 9 @ 6A W M D x 2 ^. 1:21 PM 1) 4/26/202026 AutoSave Of H e r = Phase One (2) - Excel Search Paige Garrett PG - O x Comments File Home Insert Page Layout Formulas Data Review View Help QuickBooks E 49 0 E. A O Calibri 11 AA === BI - DA EEE Wrap Text E Merge & Center General | $ % Paste Share 5 Ideas LE E E P B Conditional Format as Cell Formatting Table Styles Styles Insert 9X Delete Format Cells 48,99 ' Sensitivity Sort & Find & Filter Select Editing Clipboard Font Alignment Number Ideas Sensitivity B93 X Fox Selling price per T-shirt ($15) / Variable cost per T-shirt($5.09) B C D E F G H I J K L M N OP Q R S T U V 54 Explanations: $10,000/12 Depreciation on computer & printei $150 57 (3) 58 Explanations: 6000/3=2000; 2000-90= 1800 ; 1800/12= 150 60 61 (4) 62 Explanations: Depreciation on Heat Press $125 45000/3= 1500; 1500/12= 125 65 Total Fixed Manufacturing cost per year: $40,296 Cost Items Cost Per Month 68 Non-Manufacturing 69 (1) 70 Explanations: Rent $250 $2500*10% 72 Depreciation on computer & printe $17 73 (2) 74 Explanations: 75 6000/3= 2000; 2000*10%= 200; 200/12 17 (16.67] 76 Salary $1,000 77 (3) 78 Explanations: 79 80 81 (4) 12000/12= 1,000 Liability Insuraamce $300 Sheet1 0 1 Type here to search o & em 9 @ 6A W M D x 2 - - + 1:22 PM 1) 4/26/202026 ^ D AutoSave Of H e r = Phase One (2) - Excel Search Paige Garrett PG - O x Comments File Home Insert Page Layout Formulas Data Review View Help QuickBooks E 49 0 E. A O Calibri 11 AA === BI - DA EEE Wrap Text E Merge & Center General | $ % Paste Share 5 Ideas LE E E P B Conditional Format as Cell Formatting Table Styles Styles Insert 9X Delete Format Cells 48,99 ' Sensitivity Sort & Find & Filter Select Editing Clipboard Font Alignment Number Ideas Sensitivity B93 X Fac Selling price per T-shirt ($15) / Variable cost per T-shirt($5.09) C D E G H I J K L M N O P Q R S T U V B Salary F $1,000 77 (3) 78 Explanations: 79 12000/12= 1,000 Liability Insuraamce $300 81 (4) 82 Explanations: 83 3600/12=300 85 Total Fixed Non-Manufacturing costs per year: $16,044 87 Total Fixed Costs Per Month: $4,925 89 4. Calculate contribution Margin, break-even, target profit $2.95 91 a) Contribution margin per t-shirt = 92 Explanations: 93 Selling price per T-shirt($15) / Variable cost per T-shirt($5.09) 94 y5 652 96 b) Break-even # of t-shirts per month = 97 Explanations: Fixed costs per month/Contribution marginper T-shirt 596 99 c) # of t-shirts needed to earn $1,000 100 profit per month = 101 Explanations: 102 103 Sheet1 Fixed Cost+Desired Profit/PV Ratio/Selling Price 5 @ - - 1 Type here to search o & em 9 @ 6A W M D x 2 - + 80% 1:22 PM 1) 4/26/202026 ^. AutoSave Of H e r = Phase Two (1) - Excel Search Paige Garrett PG - O x Comments File Home Insert Page Layout Formulas Data Review View Help QuickBooks = 48 Calibri 11 A A BI - DA == S Op EE alle Wrap Text Merge & Center - General $ % Share 5 Ideas Paste LE " Insert 9X Delete Format Cells 48 Sensitivity Formatting Styles Table Styles Sort & Find & Filter Select Editing Clipboard F Font Alignment Number Ideas Sensitivity A73 A 1 Business Simulation Project - Phase Two B C D E F G H I J K L M N O P LA 3 Your Company Name: 5 1. Calculate amount of cash you need to borrow from your parents 6 a) cash needed for variable costs of $2,000 shirts Cash needed 8 9 Direct materials (t-shirts) 10 Explanation/calculation: 11 12 13 Labor costs 14 Explanation/calculation: 15 16 17 Transfer Paper 18 Explanation/calculation: 19 20 21 Ink-jet Cartridges 22 (Manufacturing & Non-manufacturing costs) Sheet1 Sheet2 Sheet3 + @ J -- Type here to search o B e 9 6A W M D x + + 100% 1:26 PM 1) 4/26/202026 2 ^. AutoSave Of H e r = Phase Two (1) - Excel Search Paige Garrett PG - O x Comments File Home Insert Page Layout Formulas Data Review View Help QuickBooks = Op 48 Calibri 11 A A BI - DA == S alle Wrap Text E Merge & Center - General $ -% Share 5 Ideas Paste LE " E Insert 9X Delete Format Cells - Sensitivity Formatting Styles Table Styles Sort & Find & Filter Select Editing Clipboard F Font Alignment Number Ideas Sensitivity A73 B C D E F G H I J K L M N O P LA 21 Ink-jet Cartridges 22 (Manufacturing & Non-manufacturing costs) 23 Explanation/calculation: 24 25 Laser Paper 26 Explanation calculation: 28 29 Total cash needed for variable costs 31 a) cash needed for fixed costs during 1st quarter 33 Cash Needed 34 35 Mall rent 36 37 Explanation/calculation: 38 (Manufacturing & Non-manufacturing costs) 39 Artist Fee 40 Explanation/calculation: 41 42 Sheet1 Sheet2 Sheet3 + 0 0 -- Type here to search o e 9 6A W + + 1:26 PM 1) 4/26/202026 ab ^. AutoSave Of H e r = Phase Two (1) - Excel Search Paige Garrett PG - O x Comments File Home Insert Page Layout Formulas Data Review View Help QuickBooks = 48 Calibri 11 A A BI - DA e == S Op EE alle Wrap Text Merge & Center - General $ % Share 5 Ideas Paste Insert 9X Delete Format Cells 48 Sensitivity Formatting Styles Table Styles Sort & Find & Filter Select Editing Clipboard F Font Alignment Number Ideas Sensitivity A73 B C D E F G H I J K L M N O P LA 39 Artist Fee 40 Explanation/calculation: 41 42 43 Computer & Printer 44 (Manufacturing & Non-manufacturing costs) 45 Explanation/calculation: 46 47 Heat press machine 48 Explanation/calculation: 49 50 51 Liability Insurance 52 Explanation calculation: 54 55 Total cash needed for fixed costs 57 Total cash borrowed from parents 58 59 2. Cash budget for the first year 60 Sheet1 Sheet2 ***Provide an explanation and/or show your calculations to the right of the number entered below on each line Sheet3 + @ -- Type here to search o e 9 6A W ab - + 100% 1:26 PM 1) 4/26/202026 ^. AutoSave Of H e r = Phase Two (1) - Excel Search Paige Garrett PG - O x Comments File Home Insert Page Layout Formulas Data Review View Help QuickBooks = E' AY O Calibri 11 A A BIU - Av == Op alle Wrap Text SEE Merge & Center General $ % Share 5 Ideas Paste LE " Insert" 9X Delete Format Cells 88 ' Sensitivity Formatting Styles Table Styles Sort & Find & Filter Select Editing Clipboard F Font Alignment Number Ideas Sensitivity A73 F G H I J K L M N O P Q R 59 2. Cash budget for the first year 60 ***Provide an explanation and/or show your calculations to the right of the number entered below on each line 61 Cash balance, January 1, 2020 62 Collections from customers 63 Total cash available before payments 64 Less Payments: 65 Manufacturing Costs 66 Selling & Administrative Expenses 67 Capital Expenditures 68 Total Payments 69 Excess of cash 70 Financing: 71 Repayment of loan from parents 72 Cash balance, December 31, 2020 73 74 3. Prepare a Budgeted Income Statement 75 76 Revenue from Sales 77 Cost of Goods Sold 78 Gross Profit 79 Selling & Admin Expenses 80 Income from Operations 81 Other Expenses: 82 Interest Expense Sheet1 Sheet2 Sheet3 + 9 ] -- [ ^. - + 90% 1:27 PM 1) 4/26/202026 Type here to search o & em 9 @ 6A W M D x 2 AutoSave Of H e r = Phase Two (1) - Excel Search Paige Garrett PG - O x Comments File Home Insert Page Layout Formulas Data Review View Help QuickBooks = E' AY O Calibri 11 A A BIU - Av == Op alle Wrap Text SEE Merge & Center Paste Share 5 Ideas LE General $ % 88 ' Numbers " Insert" 9X Delete Format Cells Sensitivity Formatting Styles Table Styles Sort & Find & Filter Select Editing Clipboard F Font Alignment Ideas Sensitivity A73 F G H I J K L M N O P Q R 65 Manufacturing Costs 66 Selling & Administrative Expenses 67 Capital Expenditures 68 Total Payments 69 Excess of cash 70 Financing 71 Repayment of loan from parents 72 Cash balance, December 31, 2020 73 74 3. Prepare a Budgeted Income Statement 75 76 Revenue from Sales 77 Cost of Goods Sold 78 Gross Profit 79 Selling & Admin Expenses 80 Income from Operations 81 Other Expenses: 82 Interest Expense 83 Income before income tax 84 Income tax expense** 85 Net Income 86 87 **Assume a federal tax rate of 21% and a state tax rate of 7% 88 Sheet1 Sheet2 Sheet3 + ! O J -- - + 90% 1:27 PM 1) 4/26/202026 Type here to search o & em 9 @ 6A W M D x 2 ^. AutoSave Of H e r = Phase One (2) - Excel Search Paige Garrett PG - O x Comments File Home Insert Page Layout Formulas Data Review View Help QuickBooks Op alle Wrap Text EAY O Calibri 11 A A = == BI - DA EEE General | $ % Paste Share 5 Ideas LE E E E Merge & Center P2 Conditional Format as Cell Formatting Table Styles Styles Insert 9X Delete Format Cells 48,99 ' Sensitivity Sort & Find & Filter Select Editing Clipboard Font Alignment Number Ideas Sensitivity B93 - X for Selling price per T-shirt($15) / Variable cost per T-shirt($5.09) D E F G H I J K L M N O P Q R S T U V Cost Per T-Shirt 9 Variable costs and Expenses 10 (Round your numbers to the hundreth, ie. Sx.xx) Cost Items 12 Manufacturing 13 (1) White Cotton T-Shirts 14 Explanations: $3.75 15 Price is $3.75 Transfer Paper $0.40 17 (2) 18 Explanations: Cost $400/ Papers in one box= 400/1000 20 21 (3) 22 Explanations: Ink Jet $0.10 Cost $50/ Nunmber of prints 500= 50/500 Part-Time Employees $0.80 25 (4) 26 Explanations: Cost per hour $8 Number of shirts printed per hour=10; $8/10= $.80 28 29 Total Variable Manufacturing cost per T-Shirt: $5.05 31 Cost Items Cost Per T-Shirt Ink Jet $0.02 32 Non-Manufacturing 33 (1) 34 Explanations: 35 50/500= $.10 : $.10/5= $.02 Sheet1 5 @ - - - + 80% a Type here to search ^. 1:21 PM 1) 4/26/202026 AutoSave Of H e r = Phase One (2) - Excel Search Paige Garrett PG File Home Insert Page Layout Formulas Data Review View Help QuickBooks - O x Share Comments 5 MP Ideas Sensitivity === EAY O E. A O Calibri 11 AA BI - DA Wrap Text Merge & Center General | $ % Paste LE , 40.00 ' P B Conditional Format as Cell Formatting Table Styles Styles Insert 9X Delete Format Cells Sort & Find & Filter Select Editing Clipboard Font Alignment Number Ideas Sensitivity B93 X for Selling price per T-shirt ($15) / Variable cost per T-shirt($5.09) B C D E F G H I J K L M N O P Q R S T U V 30 Cost Items Cost Per T-Shirt 32 Non-Manufacturing 33 (1) 34 Explanations: Ink Jet $0.02 35 50/500= $.10 ;$.10/5= $.02 Sooz Laser Paper $0.02 37 (2) 38 Explanations: $20/200= $.10; $.10/5= $.20 41 Total Variable Non-Manufacturing costs per T-shirt: $0.04 43 Total Variable costs per T-shirt: $5.09 Cost Per Month 45 Fixed Costs and Expenses 46 (Round your numbers to the nearest whole dollar) Cost Items 48 Manufacturing 49 1) Rent 50 Explanations: 51 $2,500*90%=$2,250 $2,250.00 52 Annual Contract Fees $833.00 53 2) 54 Explanations: 55 56 57 (3) $10,000/12 Depreciation on computer & printer $150 Sheet1 5 @ - - - + 80% Type here to search o & em 9 @ 6A W M D x 2 ^. 1:21 PM 1) 4/26/202026 AutoSave Of H e r = Phase One (2) - Excel Search Paige Garrett PG - O x Comments File Home Insert Page Layout Formulas Data Review View Help QuickBooks E 49 0 E. A O Calibri 11 AA === BI - DA EEE Wrap Text E Merge & Center General | $ % Paste Share 5 Ideas LE E E P B Conditional Format as Cell Formatting Table Styles Styles Insert 9X Delete Format Cells 48,99 ' Sensitivity Sort & Find & Filter Select Editing Clipboard Font Alignment Number Ideas Sensitivity B93 X Fox Selling price per T-shirt ($15) / Variable cost per T-shirt($5.09) B C D E F G H I J K L M N OP Q R S T U V 54 Explanations: $10,000/12 Depreciation on computer & printei $150 57 (3) 58 Explanations: 6000/3=2000; 2000-90= 1800 ; 1800/12= 150 60 61 (4) 62 Explanations: Depreciation on Heat Press $125 45000/3= 1500; 1500/12= 125 65 Total Fixed Manufacturing cost per year: $40,296 Cost Items Cost Per Month 68 Non-Manufacturing 69 (1) 70 Explanations: Rent $250 $2500*10% 72 Depreciation on computer & printe $17 73 (2) 74 Explanations: 75 6000/3= 2000; 2000*10%= 200; 200/12 17 (16.67] 76 Salary $1,000 77 (3) 78 Explanations: 79 80 81 (4) 12000/12= 1,000 Liability Insuraamce $300 Sheet1 0 1 Type here to search o & em 9 @ 6A W M D x 2 - - + 1:22 PM 1) 4/26/202026 ^ D AutoSave Of H e r = Phase One (2) - Excel Search Paige Garrett PG - O x Comments File Home Insert Page Layout Formulas Data Review View Help QuickBooks E 49 0 E. A O Calibri 11 AA === BI - DA EEE Wrap Text E Merge & Center General | $ % Paste Share 5 Ideas LE E E P B Conditional Format as Cell Formatting Table Styles Styles Insert 9X Delete Format Cells 48,99 ' Sensitivity Sort & Find & Filter Select Editing Clipboard Font Alignment Number Ideas Sensitivity B93 X Fac Selling price per T-shirt ($15) / Variable cost per T-shirt($5.09) C D E G H I J K L M N O P Q R S T U V B Salary F $1,000 77 (3) 78 Explanations: 79 12000/12= 1,000 Liability Insuraamce $300 81 (4) 82 Explanations: 83 3600/12=300 85 Total Fixed Non-Manufacturing costs per year: $16,044 87 Total Fixed Costs Per Month: $4,925 89 4. Calculate contribution Margin, break-even, target profit $2.95 91 a) Contribution margin per t-shirt = 92 Explanations: 93 Selling price per T-shirt($15) / Variable cost per T-shirt($5.09) 94 y5 652 96 b) Break-even # of t-shirts per month = 97 Explanations: Fixed costs per month/Contribution marginper T-shirt 596 99 c) # of t-shirts needed to earn $1,000 100 profit per month = 101 Explanations: 102 103 Sheet1 Fixed Cost+Desired Profit/PV Ratio/Selling Price 5 @ - - 1 Type here to search o & em 9 @ 6A W M D x 2 - + 80% 1:22 PM 1) 4/26/202026 ^. AutoSave Of H e r = Phase Two (1) - Excel Search Paige Garrett PG - O x Comments File Home Insert Page Layout Formulas Data Review View Help QuickBooks = 48 Calibri 11 A A BI - DA == S Op EE alle Wrap Text Merge & Center - General $ % Share 5 Ideas Paste LE " Insert 9X Delete Format Cells 48 Sensitivity Formatting Styles Table Styles Sort & Find & Filter Select Editing Clipboard F Font Alignment Number Ideas Sensitivity A73 A 1 Business Simulation Project - Phase Two B C D E F G H I J K L M N O P LA 3 Your Company Name: 5 1. Calculate amount of cash you need to borrow from your parents 6 a) cash needed for variable costs of $2,000 shirts Cash needed 8 9 Direct materials (t-shirts) 10 Explanation/calculation: 11 12 13 Labor costs 14 Explanation/calculation: 15 16 17 Transfer Paper 18 Explanation/calculation: 19 20 21 Ink-jet Cartridges 22 (Manufacturing & Non-manufacturing costs) Sheet1 Sheet2 Sheet3 + @ J -- Type here to search o B e 9 6A W M D x + + 100% 1:26 PM 1) 4/26/202026 2 ^. AutoSave Of H e r = Phase Two (1) - Excel Search Paige Garrett PG - O x Comments File Home Insert Page Layout Formulas Data Review View Help QuickBooks = Op 48 Calibri 11 A A BI - DA == S alle Wrap Text E Merge & Center - General $ -% Share 5 Ideas Paste LE " E Insert 9X Delete Format Cells - Sensitivity Formatting Styles Table Styles Sort & Find & Filter Select Editing Clipboard F Font Alignment Number Ideas Sensitivity A73 B C D E F G H I J K L M N O P LA 21 Ink-jet Cartridges 22 (Manufacturing & Non-manufacturing costs) 23 Explanation/calculation: 24 25 Laser Paper 26 Explanation calculation: 28 29 Total cash needed for variable costs 31 a) cash needed for fixed costs during 1st quarter 33 Cash Needed 34 35 Mall rent 36 37 Explanation/calculation: 38 (Manufacturing & Non-manufacturing costs) 39 Artist Fee 40 Explanation/calculation: 41 42 Sheet1 Sheet2 Sheet3 + 0 0 -- Type here to search o e 9 6A W + + 1:26 PM 1) 4/26/202026 ab ^. AutoSave Of H e r = Phase Two (1) - Excel Search Paige Garrett PG - O x Comments File Home Insert Page Layout Formulas Data Review View Help QuickBooks = 48 Calibri 11 A A BI - DA e == S Op EE alle Wrap Text Merge & Center - General $ % Share 5 Ideas Paste Insert 9X Delete Format Cells 48 Sensitivity Formatting Styles Table Styles Sort & Find & Filter Select Editing Clipboard F Font Alignment Number Ideas Sensitivity A73 B C D E F G H I J K L M N O P LA 39 Artist Fee 40 Explanation/calculation: 41 42 43 Computer & Printer 44 (Manufacturing & Non-manufacturing costs) 45 Explanation/calculation: 46 47 Heat press machine 48 Explanation/calculation: 49 50 51 Liability Insurance 52 Explanation calculation: 54 55 Total cash needed for fixed costs 57 Total cash borrowed from parents 58 59 2. Cash budget for the first year 60 Sheet1 Sheet2 ***Provide an explanation and/or show your calculations to the right of the number entered below on each line Sheet3 + @ -- Type here to search o e 9 6A W ab - + 100% 1:26 PM 1) 4/26/202026 ^. AutoSave Of H e r = Phase Two (1) - Excel Search Paige Garrett PG - O x Comments File Home Insert Page Layout Formulas Data Review View Help QuickBooks = E' AY O Calibri 11 A A BIU - Av == Op alle Wrap Text SEE Merge & Center General $ % Share 5 Ideas Paste LE " Insert" 9X Delete Format Cells 88 ' Sensitivity Formatting Styles Table Styles Sort & Find & Filter Select Editing Clipboard F Font Alignment Number Ideas Sensitivity A73 F G H I J K L M N O P Q R 59 2. Cash budget for the first year 60 ***Provide an explanation and/or show your calculations to the right of the number entered below on each line 61 Cash balance, January 1, 2020 62 Collections from customers 63 Total cash available before payments 64 Less Payments: 65 Manufacturing Costs 66 Selling & Administrative Expenses 67 Capital Expenditures 68 Total Payments 69 Excess of cash 70 Financing: 71 Repayment of loan from parents 72 Cash balance, December 31, 2020 73 74 3. Prepare a Budgeted Income Statement 75 76 Revenue from Sales 77 Cost of Goods Sold 78 Gross Profit 79 Selling & Admin Expenses 80 Income from Operations 81 Other Expenses: 82 Interest Expense Sheet1 Sheet2 Sheet3 + 9 ] -- [ ^. - + 90% 1:27 PM 1) 4/26/202026 Type here to search o & em 9 @ 6A W M D x 2 AutoSave Of H e r = Phase Two (1) - Excel Search Paige Garrett PG - O x Comments File Home Insert Page Layout Formulas Data Review View Help QuickBooks = E' AY O Calibri 11 A A BIU - Av == Op alle Wrap Text SEE Merge & Center Paste Share 5 Ideas LE General $ % 88 ' Numbers " Insert" 9X Delete Format Cells Sensitivity Formatting Styles Table Styles Sort & Find & Filter Select Editing Clipboard F Font Alignment Ideas Sensitivity A73 F G H I J K L M N O P Q R 65 Manufacturing Costs 66 Selling & Administrative Expenses 67 Capital Expenditures 68 Total Payments 69 Excess of cash 70 Financing 71 Repayment of loan from parents 72 Cash balance, December 31, 2020 73 74 3. Prepare a Budgeted Income Statement 75 76 Revenue from Sales 77 Cost of Goods Sold 78 Gross Profit 79 Selling & Admin Expenses 80 Income from Operations 81 Other Expenses: 82 Interest Expense 83 Income before income tax 84 Income tax expense** 85 Net Income 86 87 **Assume a federal tax rate of 21% and a state tax rate of 7% 88 Sheet1 Sheet2 Sheet3 + ! O J -- - + 90% 1:27 PM 1) 4/26/202026 Type here to search o & em 9 @ 6A W M D x 2 ^