PLEASE COMPLETE SCHEDULE 9 & 10

Use the template provided to create the following: Schedule 1: Sales Budget Schedule 2: Cash receipts Schedule 3: Production Budget in Units Schedule 4: Direct Materials Purchases Schedule 5: Cash Purchases Budget Schedule 6: Direct Labor Budget Schedule 7: Overhead Budget Schedule 8: Selling and Administrative Expense Budget Schedule 9: Ending Finished goods Schedule 10: Budgeted cost of goods sold Schedule 11: Cash Budget Schedule 12: Budgeted Income Statement Schedule 13: Budgeted Statement of Retained Earnings Schedule 14: Budgeted Balance Sheet WGT Balance Sheet Cash Accounts Receivable Inventory Raw Materials FG Inventory Land Buildings and Equip Accum Depr Total Assets 01/01/2014 $ 22,000 12,000 350 4,950 8,000 70,000 (29200) $ 88,100 $ Accounts Payable Capital Stock RE Total Liab and Stockholders 2,580 17,500 68,020 88, 100 $ Use the following to complete the team project: 1. The marketing department projects the following sales levels: Quarter 1, 2014 Quarter 2, 2014 Quarter 3, 2014 Quarter 4, 2014 Quarter 1, 2015 Quarter 2, 2015 8,700 Gnomes 9,800 Gnomes 4,200 Gnomes 3,800 Gnomes 4,600 Gnomes 2,800 Gnomes The statues are expected to sell for $40.00 EACH 1. WGT sell all merchandise on credit. Historically, WGT receives 65% quarter's sales during the quarter and 35% in the next quarter. of each 2. WGT plans to stock the ending inventory of finished goods to equal 60% of the next quarter's sales Finished Goods inventory at 01/01/2014 is 300 statues at a cost of $16.5 per unit. 7.00 3. The statues are made with both cement and plaster. The statues each require pounds of cement at a cost of $0.70 per pound In addition, the statues require 7 pounds of plaster at $0.55 per pound. At $ 12/31/2013 WGT had 500 pounds of cement on hand and no plaster on hand. WGT plans to keep 60% of the cement and 60% of the plaster required required for next quarter's production in inventory at the end of each quarter. WGT pays for purchases as follows: 55% in the quarter purchased and 45% in the quarter following the purchase 4. Each of the statue requires 0.7 hrs of direct labor at $7.25 per hour. Employees are paid on the last day of each month for that month's work. Other costs are paid in the quarter unless otherwise noted. 5. Variable overhead is estimated at $3.25 per direct labor hour. Fixed overhead costs are $40,000 per year. Fixed overhead includes depreciation of $8,000 per year. 6. Variable selling and administrative costs are $4.50 per unit. Fixed selling and administrative costs are $30,000 per year. (This includes $7,500 of depreciation per year) 30% of net 7. WGT makes quarterly income tax payments of $8,000 The coprorate income tax rate is before taxes (consider underpayments on your balance sheet). 8. WGT pays quarterly dividends of $5,000 9. WGT will purchase additional equipment using cash on the following schedule (depreciation is already included above): 4,400 3,200 Quarter 1 Quarter 2 Quarter 3 Quarter 4 $ $ $ $ 10. WGT has to maintain a minimum cash balance of $10,000 All borrowings are made at the end of the quarter and paid back at the end of the first quarter where there is a cash surplus to make the debt payments. All borrowings and repayments are made in $1,000 increments. Interest is paid at the time of repayment and is calculated at 4.00% per year (no Compounding) 11. In addition to completing the budget, write a one to two page(s) executive summary as though you are the CFO and you are informing the CEO of the following informaton: What projections were made in creating the budget? Were these projections reasonable given the current economic environment and the industry in which WGT Co. operates What might occur if your projections are incorrect (some financial figures are helpful here, but not a full budget) We note that actual dollar values for WGT Co. do not reflect current market values or conditions. Ignore the dollar values and discuss in general, the economic and industry trends for the industry WGT Co. Q1 Q2 Q3 Q4 Total Schedule 1: Sales Budget Sales in Units 8.700 9.800 4,200 3.800 26,500 x sales price 40 40 40 40 40 Sales revenue $348,000 $392,000 $168,000 $152,000 $1,060,000 $226,200 $254,800 $109,200 $98,800 Cash received from current quarter sales (65%) $121,800 $137,200 $58,800 $53,200 Accounts Receivable from current quarter sales (35%) Q2 Q3 Q4 Total Schedule 2: Cash 01 receipts 226,200 254,800 109,200 98,800 689,000 Current quarter sales - cash receipts 12.000 121,800 137,200 58,800 329,800 Cash Receipts from prior quarter receivables $238,200 $376,600 $246,400 $157,600 $1,018,800 Total Cash Receipts Part 3) Q2 Q3 Q4 Total 5,880 2,520 2.280 Schedule 3: Q1 Production Budget in Units Beginning 300 Balance: Finished Goods (units) Plus: Production 14,280 of Finished Goods (units) [Sales + Ending Balance - Opening Balance] 6,440 3,960 4,280 29,190 8,700 9,800 4,200 3,800 26,500 Less: Sales of Finished Goods (units) 5,880 (9,800"60) 2,520 (4,200"60) 2,280 (3,800*.60) 2,760 (4,600"60) Ending Balance Finished Goods (units) Q1 Q2 Q3 Q4 Total Schedule 4: DM Purchases: Cement 6,440 3,960 4,280 28,960 Units to be 14.280 produced Amt of cement per 7.0 unit (lbs.) 7.0 70 7.0 99,960 45,080 27,720 29,960 202,720 Cement needs for production (lbs) 500 27,048 16,632 17,976 Beginning Balance: Cement (lbs) 126,508 34,664 Plus: Cement Purchases (lbs) 29,064 26,768 217,004 99 960 45,080 27,720 29,960 202,720 Less: Cement Used in Production (lbs) 27,048 16,632 17,976 14,784 Ending Balance Cement 126,508 34,664 Cement to be purchased (lbs) 29,064 26,768 217,004 $0.70 $0.70 $0.70 $0.70 Cement cost per lb $88,555.60 $24,264.80 $20,344,80 $18,737.60 $151,902.80 Total cement purchase cost Q2 Q3 Q4 Total 6.440 3,960 4,280 28,960 Schedule 4: DM Q1 Purchases: Plaster Units to be 14,280 produced Amt of plaster per 7 unit (lbs.) Plaster needs for 99,960 production (lbs) 7 7 7 45,080 27,720 29,960 2,02,720 0 27,048 16,632 17,976 Beginning Balance: Plaster (lbs) 34,664 29,064 26,768 217,504 45,080 27.720 29,960 Plus: Plaster 1,27,008 Purchases (lbs) Less: Plaster Used 99,960 in Production (lbs) Ending Balance: 27,048 Plaster 202,720 16,632 17,976 14,784 34,664 29,064 26,768 217,504 Plaster to be 1,27,008 purchased (lbs) Plaster cost per lb. $0.55 Total plaster $69,854.40 purchase cost $0.55 $0.55 $0.55 $19,065.20 $15,985.20 $14,722.40 $119,627.20 $158,410 $43,330 $36,330 $33,460 $271,530 Total DM purchase cost: Cement + Plaster Solution: 5) 8) Cash Purchase Budget Particulars Q1 Q2 Q3 Q4 Year Accounts payable $ 2,580 $ $ $ $ 2,580 Q1 purchases - 158410*55% and 45% $ 87,126 $71,285 $ $ $1,58,410 Q2 purchases - 43330*55% and 45% $ $ 23,832 $ 19,499 $ $ 43,330 Q3 purchases - 36330*55% and 45% $ $ $ 19,982 $16,349 $ 36,330 Q4 purchases - 33460*55% $ $ $ $ 18,403 $ 18,403 Total Cash outlay per quarter $ 89,706 $95,116 $ 39,480 $34,752 $2,59,053 Particulars Units Sold Variable Selling and Admin rate Budgeted variable (SG&A) cost Depreciation Other SG&A Budgeted Fixed SG&A Cost Total Budgeted SG&A Expense SG&A Budget Q1 Q21 Q3| Q4 Year 8700 9800 4200 3800 26500 $ 4.50 $ 4.50 $ 4.50 $ 4.50 $ 4.50 $ 39,150 $ 44,100 $ 18,900 $ 17,100 $1,19,250 $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 30,000 $ 22,500 $ 22,500 $ 22,500 $ 22,500 $ 90,000 $ 30,000 $30,000 $30,000 $30,000 $1,20,000 $ 69,150 $ 74,100 $ 48,900 $ 47,100 $2,39,250 6) Particulars Units to be produced DL need per unit DL hours needed Cost per hour Total budgeted direct labor Direct Labor Budget Q1 Q2 Q3 Q41 Year 14280 6440 3960 4280 28960 0.7 0.7 0.7 0.7 0.7 9996 4508 2772 2996 20272 $ 7.25 $7.25 $ 7.25 $ 7.25 $ 7.25 $ 72,471 $32,683 $ 20,097 $ 21,721 $1,46,972 7) Particulars DL hours needed VOH Rate / Hour Budgeted variable overhead Depreciation Other Fixed Costs Budgeted Fixed OH Total Budgeted OH Expense Overhead Budget Q1 Q21 Q3 Q4 Year 9996 4508 2772 2996 20272 $ 3.25 $ 3.25 $ 3.25 $ 3.25 $ 3.25 $ 32,487 $ 14,651 $ 9,009 $ 9,737 $ 65,884 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $32,000 $32,000 $32,000 $32,000 $32,000 $1,28,000 $ 40,000 $40,000 $40,000 $40,000 $1,60,000 $72,487 $54,651 $ 49,009 $49,737 $2,25,884 Schedule 9: Ending Finished goods Ending Balances: Inventory - DM, DL DM - Cement DM - Plaster Direct Labor Total Per Unit Inventory Costs: Units in Ending Inventory: Ending Inventory: DM, DL Ending Balance: Inventory - Overhead Variable Overhead Fixed Overhead Total Per Unit Inventory Costs: Units in Ending Inventory: Ending Inventory: Overhead Total Ending Inventory Balance: Finished Goods Schedule 10: Budgeted COGS Beginning Balance: Finished Goods Costs incurred during the period Direct materials used - cement Direct materials used - plaster Direct labor used Overhead - total Cost of Goods Available For Sale Ending Inventory Cost of Goods Sold Use the template provided to create the following: Schedule 1: Sales Budget Schedule 2: Cash receipts Schedule 3: Production Budget in Units Schedule 4: Direct Materials Purchases Schedule 5: Cash Purchases Budget Schedule 6: Direct Labor Budget Schedule 7: Overhead Budget Schedule 8: Selling and Administrative Expense Budget Schedule 9: Ending Finished goods Schedule 10: Budgeted cost of goods sold Schedule 11: Cash Budget Schedule 12: Budgeted Income Statement Schedule 13: Budgeted Statement of Retained Earnings Schedule 14: Budgeted Balance Sheet WGT Balance Sheet Cash Accounts Receivable Inventory Raw Materials FG Inventory Land Buildings and Equip Accum Depr Total Assets 01/01/2014 $ 22,000 12,000 350 4,950 8,000 70,000 (29200) $ 88,100 $ Accounts Payable Capital Stock RE Total Liab and Stockholders 2,580 17,500 68,020 88, 100 $ Use the following to complete the team project: 1. The marketing department projects the following sales levels: Quarter 1, 2014 Quarter 2, 2014 Quarter 3, 2014 Quarter 4, 2014 Quarter 1, 2015 Quarter 2, 2015 8,700 Gnomes 9,800 Gnomes 4,200 Gnomes 3,800 Gnomes 4,600 Gnomes 2,800 Gnomes The statues are expected to sell for $40.00 EACH 1. WGT sell all merchandise on credit. Historically, WGT receives 65% quarter's sales during the quarter and 35% in the next quarter. of each 2. WGT plans to stock the ending inventory of finished goods to equal 60% of the next quarter's sales Finished Goods inventory at 01/01/2014 is 300 statues at a cost of $16.5 per unit. 7.00 3. The statues are made with both cement and plaster. The statues each require pounds of cement at a cost of $0.70 per pound In addition, the statues require 7 pounds of plaster at $0.55 per pound. At $ 12/31/2013 WGT had 500 pounds of cement on hand and no plaster on hand. WGT plans to keep 60% of the cement and 60% of the plaster required required for next quarter's production in inventory at the end of each quarter. WGT pays for purchases as follows: 55% in the quarter purchased and 45% in the quarter following the purchase 4. Each of the statue requires 0.7 hrs of direct labor at $7.25 per hour. Employees are paid on the last day of each month for that month's work. Other costs are paid in the quarter unless otherwise noted. 5. Variable overhead is estimated at $3.25 per direct labor hour. Fixed overhead costs are $40,000 per year. Fixed overhead includes depreciation of $8,000 per year. 6. Variable selling and administrative costs are $4.50 per unit. Fixed selling and administrative costs are $30,000 per year. (This includes $7,500 of depreciation per year) 30% of net 7. WGT makes quarterly income tax payments of $8,000 The coprorate income tax rate is before taxes (consider underpayments on your balance sheet). 8. WGT pays quarterly dividends of $5,000 9. WGT will purchase additional equipment using cash on the following schedule (depreciation is already included above): 4,400 3,200 Quarter 1 Quarter 2 Quarter 3 Quarter 4 $ $ $ $ 10. WGT has to maintain a minimum cash balance of $10,000 All borrowings are made at the end of the quarter and paid back at the end of the first quarter where there is a cash surplus to make the debt payments. All borrowings and repayments are made in $1,000 increments. Interest is paid at the time of repayment and is calculated at 4.00% per year (no Compounding) 11. In addition to completing the budget, write a one to two page(s) executive summary as though you are the CFO and you are informing the CEO of the following informaton: What projections were made in creating the budget? Were these projections reasonable given the current economic environment and the industry in which WGT Co. operates What might occur if your projections are incorrect (some financial figures are helpful here, but not a full budget) We note that actual dollar values for WGT Co. do not reflect current market values or conditions. Ignore the dollar values and discuss in general, the economic and industry trends for the industry WGT Co. Q1 Q2 Q3 Q4 Total Schedule 1: Sales Budget Sales in Units 8.700 9.800 4,200 3.800 26,500 x sales price 40 40 40 40 40 Sales revenue $348,000 $392,000 $168,000 $152,000 $1,060,000 $226,200 $254,800 $109,200 $98,800 Cash received from current quarter sales (65%) $121,800 $137,200 $58,800 $53,200 Accounts Receivable from current quarter sales (35%) Q2 Q3 Q4 Total Schedule 2: Cash 01 receipts 226,200 254,800 109,200 98,800 689,000 Current quarter sales - cash receipts 12.000 121,800 137,200 58,800 329,800 Cash Receipts from prior quarter receivables $238,200 $376,600 $246,400 $157,600 $1,018,800 Total Cash Receipts Part 3) Q2 Q3 Q4 Total 5,880 2,520 2.280 Schedule 3: Q1 Production Budget in Units Beginning 300 Balance: Finished Goods (units) Plus: Production 14,280 of Finished Goods (units) [Sales + Ending Balance - Opening Balance] 6,440 3,960 4,280 29,190 8,700 9,800 4,200 3,800 26,500 Less: Sales of Finished Goods (units) 5,880 (9,800"60) 2,520 (4,200"60) 2,280 (3,800*.60) 2,760 (4,600"60) Ending Balance Finished Goods (units) Q1 Q2 Q3 Q4 Total Schedule 4: DM Purchases: Cement 6,440 3,960 4,280 28,960 Units to be 14.280 produced Amt of cement per 7.0 unit (lbs.) 7.0 70 7.0 99,960 45,080 27,720 29,960 202,720 Cement needs for production (lbs) 500 27,048 16,632 17,976 Beginning Balance: Cement (lbs) 126,508 34,664 Plus: Cement Purchases (lbs) 29,064 26,768 217,004 99 960 45,080 27,720 29,960 202,720 Less: Cement Used in Production (lbs) 27,048 16,632 17,976 14,784 Ending Balance Cement 126,508 34,664 Cement to be purchased (lbs) 29,064 26,768 217,004 $0.70 $0.70 $0.70 $0.70 Cement cost per lb $88,555.60 $24,264.80 $20,344,80 $18,737.60 $151,902.80 Total cement purchase cost Q2 Q3 Q4 Total 6.440 3,960 4,280 28,960 Schedule 4: DM Q1 Purchases: Plaster Units to be 14,280 produced Amt of plaster per 7 unit (lbs.) Plaster needs for 99,960 production (lbs) 7 7 7 45,080 27,720 29,960 2,02,720 0 27,048 16,632 17,976 Beginning Balance: Plaster (lbs) 34,664 29,064 26,768 217,504 45,080 27.720 29,960 Plus: Plaster 1,27,008 Purchases (lbs) Less: Plaster Used 99,960 in Production (lbs) Ending Balance: 27,048 Plaster 202,720 16,632 17,976 14,784 34,664 29,064 26,768 217,504 Plaster to be 1,27,008 purchased (lbs) Plaster cost per lb. $0.55 Total plaster $69,854.40 purchase cost $0.55 $0.55 $0.55 $19,065.20 $15,985.20 $14,722.40 $119,627.20 $158,410 $43,330 $36,330 $33,460 $271,530 Total DM purchase cost: Cement + Plaster Solution: 5) 8) Cash Purchase Budget Particulars Q1 Q2 Q3 Q4 Year Accounts payable $ 2,580 $ $ $ $ 2,580 Q1 purchases - 158410*55% and 45% $ 87,126 $71,285 $ $ $1,58,410 Q2 purchases - 43330*55% and 45% $ $ 23,832 $ 19,499 $ $ 43,330 Q3 purchases - 36330*55% and 45% $ $ $ 19,982 $16,349 $ 36,330 Q4 purchases - 33460*55% $ $ $ $ 18,403 $ 18,403 Total Cash outlay per quarter $ 89,706 $95,116 $ 39,480 $34,752 $2,59,053 Particulars Units Sold Variable Selling and Admin rate Budgeted variable (SG&A) cost Depreciation Other SG&A Budgeted Fixed SG&A Cost Total Budgeted SG&A Expense SG&A Budget Q1 Q21 Q3| Q4 Year 8700 9800 4200 3800 26500 $ 4.50 $ 4.50 $ 4.50 $ 4.50 $ 4.50 $ 39,150 $ 44,100 $ 18,900 $ 17,100 $1,19,250 $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 30,000 $ 22,500 $ 22,500 $ 22,500 $ 22,500 $ 90,000 $ 30,000 $30,000 $30,000 $30,000 $1,20,000 $ 69,150 $ 74,100 $ 48,900 $ 47,100 $2,39,250 6) Particulars Units to be produced DL need per unit DL hours needed Cost per hour Total budgeted direct labor Direct Labor Budget Q1 Q2 Q3 Q41 Year 14280 6440 3960 4280 28960 0.7 0.7 0.7 0.7 0.7 9996 4508 2772 2996 20272 $ 7.25 $7.25 $ 7.25 $ 7.25 $ 7.25 $ 72,471 $32,683 $ 20,097 $ 21,721 $1,46,972 7) Particulars DL hours needed VOH Rate / Hour Budgeted variable overhead Depreciation Other Fixed Costs Budgeted Fixed OH Total Budgeted OH Expense Overhead Budget Q1 Q21 Q3 Q4 Year 9996 4508 2772 2996 20272 $ 3.25 $ 3.25 $ 3.25 $ 3.25 $ 3.25 $ 32,487 $ 14,651 $ 9,009 $ 9,737 $ 65,884 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $32,000 $32,000 $32,000 $32,000 $32,000 $1,28,000 $ 40,000 $40,000 $40,000 $40,000 $1,60,000 $72,487 $54,651 $ 49,009 $49,737 $2,25,884 Schedule 9: Ending Finished goods Ending Balances: Inventory - DM, DL DM - Cement DM - Plaster Direct Labor Total Per Unit Inventory Costs: Units in Ending Inventory: Ending Inventory: DM, DL Ending Balance: Inventory - Overhead Variable Overhead Fixed Overhead Total Per Unit Inventory Costs: Units in Ending Inventory: Ending Inventory: Overhead Total Ending Inventory Balance: Finished Goods Schedule 10: Budgeted COGS Beginning Balance: Finished Goods Costs incurred during the period Direct materials used - cement Direct materials used - plaster Direct labor used Overhead - total Cost of Goods Available For Sale Ending Inventory Cost of Goods Sold