Please provide a brief introduction for the company. The introduction should include:

Name of company

Location of company

Name of owner

Nature of the business.

Type of product

Fiscal period

For the company that you have selected $-$ Prepare a $12-$month Master Budget. Your submission must show each month$$s activities $$ example January, February, March etc.

Include a column and a line Total and complete calculations of them by months and by Item line.

Here are some considerations to include:

You must forecast your sales, purchases, direct labour and manufacturing overhead for each month and any other information as required.

All sales are on accounts

Expected collections are to be $50\%$ in the month of the sale, $30\%$ in the first month following the sale, and $20\%$ in the second month following the sale.

Production the company will end each month with sufficient inventory to cover $20\%$ of the following month$$s sales. The newyear started with $600$ units in stock and plan to finish each year with $825$ units in stock.

It pays $60\%$ of direct materials purchase in cash in the month of purchase and the balance is due in the month following the purchase. It pays all other items above in the month incurred, except for selling and administrative expenses that include $$1,000$ of amortization per month.

Cost of Goods Sold: $60\%$ of the sale and desired ending inventory $20\%$ of next month$$s sale

Payment Pattern: $60\%$ of purchases paid in the month of the purchase and $40\%$ paid in the next month.

Cash in Bank $$ January $2020$ is $$20,000.$

The company expected to purchase equipment in March $2020$ for $$10,000.$

Dividend paid per quarter $$2,000.$

Selling and administration expense per month $ $40,000.$

Equipment balance as at December $31,2029$ is $$60,000.$ Accumulated depreciation $$ straight line; $5$ years

Common stock is $ $6,000$

The company has access to a line of credit with the bank with the following terms $$ interest rate is $1\%$ per month on the first day of the month, interest payable is calculated at $1\%$ of the previous month$$s outstanding balance. Borrowings in a given month are taken out at the beginning of the month.

The company wishes to maintain a minimum balance of $$10,000$ at all times.

Ensure that your total boxes correctly total up the rows in your columns.

Submission $$ in an Excel Spreadsheet

Brief introduction for the company $$ Spreadsheet $1(5$ Marks$)$

Master Budget in an excel spreadsheet $$ Spreadsheet $2.(80$ marks$)$