Please show the calculation for the balance sheet. Not sure if what i have so far is correct
given are stated as of December 31, 2018.) a. Budgeted sales are 1,800 tires for the first quarter and expected to increase by 100 tires per quarter. Cash sales are expected to be 10% of total sales, with the remaining 90% of sales on account. b. Finished Goods Inventory on December 31, 2018 consists of 100 tires at $29 each. c. Desired ending Finished Goods Inventory is 40% of the next quarter's sales, first quarter sales for 2020 are expected be 2,200 tires. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 200 pounds of rubber compound used to manufacture the tires. e. Direct materials requirements are 2 pounds of a rubber compound per tire. The cost of the compound is $4.00 per pound. f. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production, desired ending inventory for December 31, 2019 is 200 pounds, indirect materials are insignificant and not considered for budgeting purposes g. Each tire requires 0.40 hours of direct labor, direct labor costs average $14 per hour. h. Variable manufacturing overhead is $2 per tire. i. Fixed manufacturing overhead includes $5,500 per quarter in depreciation and $20,240 per quarter for other costs, such as utilities, insurance, and property taxes. j. Fixed selling and administrative expenses include $13,000 per quarter for salaries; $5,100 per quarter for rent; $1,800 per quarter for insurance, and $500 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 1% of sales. 1. Capital expenditures include $45,000 for new manufacturing equipment, to be purchased and paid in the first quarter. m. Cash receipts for sales on account are 65% in the quarter of the sale and 35% in the quarter following ecember 31, 2018, Accounts Receivable is received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. n. Direct materials purchases are paid 60% in the quarter purchased and 40% in the following quarter, December 31, 2018, Accounts Payable is paid in the first quarter of 2019. o. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. Income tax expense is projected at $3,000 per quarter and is paid in the quarter incurred. q. Gridley desires to maintain a minimum cash balance of $45,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 6% per year and paid at the beginning of the quarter based on the amount outstanding from the previous Gridley Tire Company Production Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total 1,900 1,800 760 2,000 840 7,800 880 800 Budgeted tires to be sold Plus: Desired tires in ending inventory Total tires needed Less: Tires in beginning inventory 2,100 880 2,980 2 700 2,560 100 2,840 800 8,680 100 840 2.460 940 2,040 2,140 8,580 Budgeted tires to be produced Reference Gridley Tire Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Third Quarter Fourth Quarter 2,140 Total 8,580 Budgeted tires to be produced 2,460 1,940 2,040 4,920 388 3,880 408 4,080 428 4,280 200 17,160 200 Direct materials per tire Direct materials needed for production Plus: Desired direct materials in ending inventory Total direct materials needed Less: Direct materials in beginning inventory Budgeted purchases of direct materials 5,308 4,288 4,508 4,480 17,360 200 200 408 Direct materials cost per pound 5,108 4.00 $ 20,432$ 3,900 4.00 $ 15,600 $ 4,100 4.00 $ 16,400 $ 4,052 4.00 $ 16,208 $ 17,160 4.00 68,640 Budgeted cost of direct materials Reference - X Total Gridley Tire Company Selling and Administrative Expense Budget For the Year Ended December 31, 2019 First Third Quarter Quarter Quarter Salaries Expense 13,000 $ 13,000 $ 13,000 $ Rent Expense 5,100 5,100 5,100 Insurance Expense 1,800 1,800 1,800 Depreciation Expense 500 500 Supplies Expense 1,330 1,400 21,660 $ 21,730S 21,800 $ Total budgeted selling and administrative expense Fourth Quarter 13,000 $ 5,100 1,800 52,000 20,400 7,200 2,000 5,460 87,060 500 500 1,260 1,470 21,870 $ Print Done i Reference Cash Receipts from Customers First Second Third Fourth Quarter | Quarter Quarter Quarter $ 126,000 S 133,000 $ 140,000 $ 147,000 $ First Second Third Fourth Quarter Quarter | Quarter Quarter Total 546,000 Total sales Total $ Cash Receipts from Customers: Accounts Receivable balance, December 31, 2018 1st Qtr.Cash sales 1st Qtr.Credit sales, collection of Qtr. 1 sales in Qtr. 1 1st Qtr.Credit sales, collection of Qtr. 1 sales in Qtr. 2 2nd Qtr.Cash sales 2nd Qtr.-Credit sales, collection of Qtr. 2 sales in Qtr. 2 2nd Qtr.Credit sales, collection of Qtr. 2 sales in Qtr. 3 3rd Qtr.Cash sales 3rd Qtr.-Credit sales, collection of Qtr. 3 sales in Qtr. 3 3rd Qtr.Credit sales, collection of Qtr. 3 sales in Qtr. 4 4th Qtr.Cash sales 4th Qtr. Credit sales, collection of Qtr. 4 sales in Qtr. 4 22,000 12,600 73,710 $ 39,690 13,300 77,805 $ 41,895 14,000 81,900 $ 44,100 14,700 85,995 108,310 $ 130,795 $ 137,795$ 144,795 $ $ 521,695 Total cash receipts from customers Accounts Receivable balance, December 31, 2019: 4th Qtr.Credit sales, collection of Qtr. 4 sales Print Done Cash Payments First Second Third Fourth Quarter Quarter Quarter Quarter $ 20,432|| 15,600||$ 16,400 $ 16,208|$ First Second Third Fourth Quarter Quarter Quarter Quarter Total 68,640 Total direct materials purchases Total $ 7,500 12,259 $ Cash Payments Direct Materials: Accounts Payable balance, December 31, 2018 1st Qtr.Qtr. 1 direct material purchases paid in Qtr. 1 1st Qtr.Qtr. 1 direct material purchases paid in Qtr. 2 2nd Qtr. Qtr. 2 direct material purchases paid in Qtr. 2 2nd Qtr.Qtr. 2 direct material purchases paid in Qtr. 3 3rd Qtr. Qtr. 3 direct material purchases paid in Qtr. 3 3rd Qtr. Qtr. 3 direct material purchases paid in Qtr. 4 4th Qtr.Qtr. 4 direct material purchases paid in Qtr. 4 8,173 9,360 $ 6,240 9,840 $ 6,560 9,725 16,285 $ 19,759 17,533 16,080 | 69,657 Total payments for direct materials Direct Labor: Total payments for direct labor 13,776 10,864 11,424 11,984 48,048 Manufacturing Overhead: Variable manufacturing overhead 4,920 || 3,880 | 4,080 || 4,280 || 17,160 Manufacturing Overhead: Variable manufacturing overhead Utilities, insurance, property taxes Total payments for manufacturing overhead 4,920 20,240 25,160 3,880 20,240 24,120 4,080 20,240 24,320 4,280 20,240 24,520 17,160 80,960 98,120 Selling and Administrative Expenses: Salaries Expense Rent Expense Insurance Expense Supplies Expense Total payments for Selling and Admin. expenses 13,000 5,100 1,800 1,260 21,160 13,000 5,100 1,800 1,330 21,230 13,000 5,100 1,800 1,400 21,300 13,000 5,100 1,800 1,470 21,370 52,000 20,400 7,200 5,460 85,060 Income Taxes: Total payments for income taxes 3,000|| 3,000 3,000 3,000 || 12,000 Capital Expenditures: Total payments for capital expenditures 45,000 45,000 $ 127,855 $ 76,747 S 76,124 $ 77,159 $ 357,885 Total cash payments (before interest) Accounts Payable balance, December 31, 2019: 4th Qtr. Qtr. 4 direct material purchases paid in Qtr. 1 of 2020 $ 6,483 For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total Beginning cash balance $ $ 48,000 108,310 45,455 $ 130,795 82,248 137,795 143,919 $ 144,795 288,714 48,000 521,695 Cash receipts 156,310 176,250 220,043 569,695 0 16,080 17,533 Cash available Cash payments: Capital expenditures Purchases of direct materials Direct labor Manufacturing overhead Selling and administrative expenses Income taxes 10,864 11,424 45,000 19,759 13,776 25,160 21,160 3,000 24,320 21,300 16,285 11,984 24,520 21,370 3,000 45,000 69,657 48,048 98,120 85,060 12,000 255 3,000 Interest expense 127.855 24,120 21,230 3,000 255 77,002 99,248 (45,000) 54,248 76,124 77,159 358,140 Total cash payments Ending cash balance before fionancing 28,455 (45,000) 143,919 (45,000) 211,555 (45,000) 211,555 (45,000) (16,545) 98,919 166,555 Minimum cash balance desired Projected cash excess (de ciency) Financing Borrowing 166,555 17,000 17,000 (17,000) (17,000) Principal repayments Total effects of Ofinancing 17,000 45,455 $ (17,000) 82,248$ $ 143,919||$ 211,555 211,555 Ending cash balance Reference Gridley Tire Company Budgeted Income Statement For the Year Ended December 31, 2019 Sales Revenue $ 546,000 Cost of Goods Sold 215,420 Gross Profit 330,580 Selling and Administrative Expenses 87,060 Operating Income 243,520 255 Interest Expense Income before Income Taxes 243,265 Income Tax Expense 12,000 $ 231,265 Net Income Print Done Gridley Tire Company Budgeted Balance Sheet December 31, 2019 Assets Current Assets Cash 211555 Accounts Receivable 521695 Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Liabilities 6483 Current Liabilities: Accounts Payable Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity given are stated as of December 31, 2018.) a. Budgeted sales are 1,800 tires for the first quarter and expected to increase by 100 tires per quarter. Cash sales are expected to be 10% of total sales, with the remaining 90% of sales on account. b. Finished Goods Inventory on December 31, 2018 consists of 100 tires at $29 each. c. Desired ending Finished Goods Inventory is 40% of the next quarter's sales, first quarter sales for 2020 are expected be 2,200 tires. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 200 pounds of rubber compound used to manufacture the tires. e. Direct materials requirements are 2 pounds of a rubber compound per tire. The cost of the compound is $4.00 per pound. f. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production, desired ending inventory for December 31, 2019 is 200 pounds, indirect materials are insignificant and not considered for budgeting purposes g. Each tire requires 0.40 hours of direct labor, direct labor costs average $14 per hour. h. Variable manufacturing overhead is $2 per tire. i. Fixed manufacturing overhead includes $5,500 per quarter in depreciation and $20,240 per quarter for other costs, such as utilities, insurance, and property taxes. j. Fixed selling and administrative expenses include $13,000 per quarter for salaries; $5,100 per quarter for rent; $1,800 per quarter for insurance, and $500 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 1% of sales. 1. Capital expenditures include $45,000 for new manufacturing equipment, to be purchased and paid in the first quarter. m. Cash receipts for sales on account are 65% in the quarter of the sale and 35% in the quarter following ecember 31, 2018, Accounts Receivable is received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. n. Direct materials purchases are paid 60% in the quarter purchased and 40% in the following quarter, December 31, 2018, Accounts Payable is paid in the first quarter of 2019. o. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. Income tax expense is projected at $3,000 per quarter and is paid in the quarter incurred. q. Gridley desires to maintain a minimum cash balance of $45,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter, principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 6% per year and paid at the beginning of the quarter based on the amount outstanding from the previous Gridley Tire Company Production Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total 1,900 1,800 760 2,000 840 7,800 880 800 Budgeted tires to be sold Plus: Desired tires in ending inventory Total tires needed Less: Tires in beginning inventory 2,100 880 2,980 2 700 2,560 100 2,840 800 8,680 100 840 2.460 940 2,040 2,140 8,580 Budgeted tires to be produced Reference Gridley Tire Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Third Quarter Fourth Quarter 2,140 Total 8,580 Budgeted tires to be produced 2,460 1,940 2,040 4,920 388 3,880 408 4,080 428 4,280 200 17,160 200 Direct materials per tire Direct materials needed for production Plus: Desired direct materials in ending inventory Total direct materials needed Less: Direct materials in beginning inventory Budgeted purchases of direct materials 5,308 4,288 4,508 4,480 17,360 200 200 408 Direct materials cost per pound 5,108 4.00 $ 20,432$ 3,900 4.00 $ 15,600 $ 4,100 4.00 $ 16,400 $ 4,052 4.00 $ 16,208 $ 17,160 4.00 68,640 Budgeted cost of direct materials Reference - X Total Gridley Tire Company Selling and Administrative Expense Budget For the Year Ended December 31, 2019 First Third Quarter Quarter Quarter Salaries Expense 13,000 $ 13,000 $ 13,000 $ Rent Expense 5,100 5,100 5,100 Insurance Expense 1,800 1,800 1,800 Depreciation Expense 500 500 Supplies Expense 1,330 1,400 21,660 $ 21,730S 21,800 $ Total budgeted selling and administrative expense Fourth Quarter 13,000 $ 5,100 1,800 52,000 20,400 7,200 2,000 5,460 87,060 500 500 1,260 1,470 21,870 $ Print Done i Reference Cash Receipts from Customers First Second Third Fourth Quarter | Quarter Quarter Quarter $ 126,000 S 133,000 $ 140,000 $ 147,000 $ First Second Third Fourth Quarter Quarter | Quarter Quarter Total 546,000 Total sales Total $ Cash Receipts from Customers: Accounts Receivable balance, December 31, 2018 1st Qtr.Cash sales 1st Qtr.Credit sales, collection of Qtr. 1 sales in Qtr. 1 1st Qtr.Credit sales, collection of Qtr. 1 sales in Qtr. 2 2nd Qtr.Cash sales 2nd Qtr.-Credit sales, collection of Qtr. 2 sales in Qtr. 2 2nd Qtr.Credit sales, collection of Qtr. 2 sales in Qtr. 3 3rd Qtr.Cash sales 3rd Qtr.-Credit sales, collection of Qtr. 3 sales in Qtr. 3 3rd Qtr.Credit sales, collection of Qtr. 3 sales in Qtr. 4 4th Qtr.Cash sales 4th Qtr. Credit sales, collection of Qtr. 4 sales in Qtr. 4 22,000 12,600 73,710 $ 39,690 13,300 77,805 $ 41,895 14,000 81,900 $ 44,100 14,700 85,995 108,310 $ 130,795 $ 137,795$ 144,795 $ $ 521,695 Total cash receipts from customers Accounts Receivable balance, December 31, 2019: 4th Qtr.Credit sales, collection of Qtr. 4 sales Print Done Cash Payments First Second Third Fourth Quarter Quarter Quarter Quarter $ 20,432|| 15,600||$ 16,400 $ 16,208|$ First Second Third Fourth Quarter Quarter Quarter Quarter Total 68,640 Total direct materials purchases Total $ 7,500 12,259 $ Cash Payments Direct Materials: Accounts Payable balance, December 31, 2018 1st Qtr.Qtr. 1 direct material purchases paid in Qtr. 1 1st Qtr.Qtr. 1 direct material purchases paid in Qtr. 2 2nd Qtr. Qtr. 2 direct material purchases paid in Qtr. 2 2nd Qtr.Qtr. 2 direct material purchases paid in Qtr. 3 3rd Qtr. Qtr. 3 direct material purchases paid in Qtr. 3 3rd Qtr. Qtr. 3 direct material purchases paid in Qtr. 4 4th Qtr.Qtr. 4 direct material purchases paid in Qtr. 4 8,173 9,360 $ 6,240 9,840 $ 6,560 9,725 16,285 $ 19,759 17,533 16,080 | 69,657 Total payments for direct materials Direct Labor: Total payments for direct labor 13,776 10,864 11,424 11,984 48,048 Manufacturing Overhead: Variable manufacturing overhead 4,920 || 3,880 | 4,080 || 4,280 || 17,160 Manufacturing Overhead: Variable manufacturing overhead Utilities, insurance, property taxes Total payments for manufacturing overhead 4,920 20,240 25,160 3,880 20,240 24,120 4,080 20,240 24,320 4,280 20,240 24,520 17,160 80,960 98,120 Selling and Administrative Expenses: Salaries Expense Rent Expense Insurance Expense Supplies Expense Total payments for Selling and Admin. expenses 13,000 5,100 1,800 1,260 21,160 13,000 5,100 1,800 1,330 21,230 13,000 5,100 1,800 1,400 21,300 13,000 5,100 1,800 1,470 21,370 52,000 20,400 7,200 5,460 85,060 Income Taxes: Total payments for income taxes 3,000|| 3,000 3,000 3,000 || 12,000 Capital Expenditures: Total payments for capital expenditures 45,000 45,000 $ 127,855 $ 76,747 S 76,124 $ 77,159 $ 357,885 Total cash payments (before interest) Accounts Payable balance, December 31, 2019: 4th Qtr. Qtr. 4 direct material purchases paid in Qtr. 1 of 2020 $ 6,483 For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total Beginning cash balance $ $ 48,000 108,310 45,455 $ 130,795 82,248 137,795 143,919 $ 144,795 288,714 48,000 521,695 Cash receipts 156,310 176,250 220,043 569,695 0 16,080 17,533 Cash available Cash payments: Capital expenditures Purchases of direct materials Direct labor Manufacturing overhead Selling and administrative expenses Income taxes 10,864 11,424 45,000 19,759 13,776 25,160 21,160 3,000 24,320 21,300 16,285 11,984 24,520 21,370 3,000 45,000 69,657 48,048 98,120 85,060 12,000 255 3,000 Interest expense 127.855 24,120 21,230 3,000 255 77,002 99,248 (45,000) 54,248 76,124 77,159 358,140 Total cash payments Ending cash balance before fionancing 28,455 (45,000) 143,919 (45,000) 211,555 (45,000) 211,555 (45,000) (16,545) 98,919 166,555 Minimum cash balance desired Projected cash excess (de ciency) Financing Borrowing 166,555 17,000 17,000 (17,000) (17,000) Principal repayments Total effects of Ofinancing 17,000 45,455 $ (17,000) 82,248$ $ 143,919||$ 211,555 211,555 Ending cash balance Reference Gridley Tire Company Budgeted Income Statement For the Year Ended December 31, 2019 Sales Revenue $ 546,000 Cost of Goods Sold 215,420 Gross Profit 330,580 Selling and Administrative Expenses 87,060 Operating Income 243,520 255 Interest Expense Income before Income Taxes 243,265 Income Tax Expense 12,000 $ 231,265 Net Income Print Done Gridley Tire Company Budgeted Balance Sheet December 31, 2019 Assets Current Assets Cash 211555 Accounts Receivable 521695 Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Liabilities 6483 Current Liabilities: Accounts Payable Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity
