Prepare a master budget for Milestones Therapeutic Company for the year ending December 31, 2024, using the following information. Prepare it per quarter. Use the tables provided by the professor. Complete it.

Prepare the Sales Budget assuming:

1. Expected sales volume: 12,000 units for the first quarter, an increase of 25% is expected for the second quarter, a decrease of 12% for the third quarter, and an increase of 15% for the fourth quarter.

2. The sales price should be $120.50 for the first two quarters and $135.00 for the last two quarters.

Prepare the Production Budget assuming:

1. The company believes it can meet future sales needs with an ending inventory of 30% of the next quarter, for the first two quarters, and 32.5% of the next quarter, for the last two quarters.
2. The expected sales in units for the first quarter of 2025 is 16,000.

Prepare the Direct Material Budget assuming:

1. Ending inventory of raw material is expected to be 20% of total pounds needed for production of the next quarter for the first two quarters and 25% of the next quarter for the last two quarters of the 2024 and the first quarter of 2025.
2. The expected pounds needed for production in the first quarter of 2025 should be the amount of the fourth quarter of 2024 increase by 10%.
3. Each product requires 5 pounds of raw material.
4. The expected cost per pound is $3.00.

Prepare the Direct Labor Budget assuming:

1. To produce a unit is required 2.66 hours of direct labor.
2. The hourly wage rate is expected to be $7.40.

Prepare the Manufacturing Overhead Budget assuming:

1. The supervisor salaries are $6,000 per month.
2. The indirect material is expected to be $1.03 per direct labor hour.
3. Depreciation is expected to be $2,333 per month.
4. Other variable cost is expected to be $1.27 per direct labor hour.
5. Property taxes and insurance are expected to be $3,500 per month.
6. Indirect labor is expected to be $1.52 per direct labor hour.
7. Maintenance is expected to be $.22 per direct labor hour plus $1,750 per month.

Prepare the Selling and Administrative Budget assuming:

1. Advertising expenses are expected to be of $1,200 per month.
2. Freight-out is expected to be $.89 per unit sold.
3. Sale Commission is expected to be $2.37 per unit sold.
4. Office salaries are expected to be $3,700 per quarter.
5. Depreciation is expected to be $675 per month.
6. Other variable costs are expected to be $.21 per unit sold.
7. Sales salaries are expected to be $4,300 per month.
8. Property taxes and insurance are expected to be $750 per quarter.
9. Miscellaneous expense is expected to be $.13 per unit sold plus $650 per quarter.

Prepare the Budgeted Income Statement with the information above and the following

information:

1. Manufacturing overhead required per unit is 2.5 hours.
2. Interest Expense is $18,000.
3. Income tax rate is 32.75%

Prepare the Cash Budget assuming:

1. January 1, 2020 cash balance is expected to be $85,000
2. Sales are expected to be collected:
   1. 55% in the quarter of the sale.
   2. 25% one quarter after the sale.
   3. 20% two quarter after the sale.
3. Accounts Receivable of $128,000 at December 31, 2023 are expected to be collected in full, $40,000 in the first quarter and the remaining in the second quarter of 2024.
4. Direct material is expected to be paid:
   1. 40% in the quarter of purchase.
   2. 45% one quarter after the purchase.
   3. 15% two quarter after the purchase.
5. Short term investments are expected to be sold for $15,000 in the second quarter and $23,500 in the third quarter.
6. Long term investment is expected to be sold for $75,000 in the third quarter.
7. Direct labor is expected to be paid:
   1. 75% in the quarter incurred.
   2. 25% one quarter after the purchase.
8. Manufacturing overhead, all items except depreciation are paid in the quarter incurred.
9. Selling and administrative expenses, all items except depreciation are paid in the quarter incurred.
10. Management plans to purchase a minivan in the fourth quarter for $40,000, and a delivery truck in the third quarter for $20,600.
11. McGregor makes equal quarterly payments of its estimated annual income taxes.
12. Accounts payable of $25,500 at December 31, 2023 are expected to be paid in full in the second quarter of 2024.
13. McGregor wishes to maintain a balance of at least $100,000 in cash.
14. Assume interest of $3,000 are included in the repayment.
15. Common Stock are expected to be issued in the fourth quarter for an amount of 20,000.
16. Loans are repaid in the earlier quarter in which there is sufficient cash (that is when the cash on hand exceeds the $100,000 minimum required balance).

Prepare the Budgeted Balance Sheet (Classified) with the information above and the following information:

1. Pertinent data at December 31, 2024 are as follows:
   1. Building and equipment, $250,000
   2. Accumulated depreciation $120,000
   3. Common stocks $370,000
   4. Retained earnings $238,964.92
2. The accounts that should be in the statements are:
   1. Cash
   2. Account receivable
   3. Finished goods inventory
   4. Raw material inventory
   5. Accounts payable
   6. Salaries and wages payable
   7. The accounts mentioned in part 1 of this section.

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