Please show formula/work.

I Master Budget VCP company just finished its first year of operation (12 months, Jan-Dec). The following is its traditional income statement and Balance Sheet Sales (12,000 units) CGS Gross Profit $ 240,000 144,000 S 96,000 Sales Commissions Salaries Depreciation expense Net Income $24,000 24,000 12.000 $36.000 AP Credit Line $3,000 9,000 Cash $5,000 AR 5,000 Inventory- Raw Mat 4,000 Inventory - Finished Goods 6,000 Equipment 60,000 Acc Depreciation ( 12.000) Total Assets $68,000 Common Stock 20,000 Retained Earn_36,000 Total L & Eq $68.000 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 10% for the year. Price will increase 20%. Sales are spread evenly throughout the year. CGS should be calculated on a FIFO basis. 40% of sales is collected in the month of sale; the remainder is collected the next month. Inventory: o Last year's Finished Goods and Cost of Goods Sold had a constant cost per unit. O All raw materials is purchased on credit (53 per lb) and is the same price as last year. Each product requires 2 lbs). o Ending inventory for both should be 20% of next month's activity (activity is constant). e 1 of 6 586 words Type here to search Dracusmuo - - month. Inventory: O Last year's Finished Goods and Cost of Goods Sold had a constant cost per unit. All raw materials is purchased on credit ($3 per lb) and is the same price as last year. Each product requires 2 lbs). O Ending inventory for both should be 20% of next month's activity (activity is constant). o Beginning and ending WIP is zero 25% of purchases are paid in the month of purchase, 75% in the following. All other expenses are paid with cash. Direct Labor is 0.2 hours per product at $20 per hour. Variable Overhead is $1 per product. Fixed Overhead is $550 per month. 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 beginning of January. Equipment is depreciated straight-line to zero salvage over 5 years. All of this is used in production Sales commission rate will remain the same. Salaries will increase by 10%. VCP wants to maintain a minimum cash balance of at least $5,000. Excess to repay credit line. 586 words D Focus II - O te Type here to search Feb Mar e. Cost of Goods Manufactured (10 points) Jan DM used (units) DM used (s) DL VOH FOH Depreciation Total Cost per unit 3 of 6 Type here to search Enabl safer to stay in Protected View. f. Cost of Goods Sold/Ending Finished Goods (FIFO) (10 points) Jan Feb Mar 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 Feb Mar g. AP/Cash Payments (10 points) Jan AP Beg Bal Purchases (Ss) AP Payments AP End Balance 586 words Focus - Type here to search Feb Mar h. Cash Budget/Interest/Credit line (10 points) Jan T Cash Beg Bal Collections AP Payments Other Cash Payments: Cash subtotal Credit Line/Borrowing/Repay (10 points) Credit Line Beginning balance Borrowing/(Repayment) of credit line Credit Line Ending balance Cash ending balance 586 words l- Droout E Type here to search