Prepare the budgets for each month in the first quarter of 2104 for the Bullwinkle, Inc.

*Slaes

Unit Selling Price $12.00

Unit Sales for November, 2013 $112,500.00

Unit Sales for December, 2013 $102,100.00

Expected unit sales for May, 2014 $137,500.00

Expected unit sales for April, 2014 $125,000.00

Expected unit sales for March, 2014 $116,000.00

Expected unit sales for February, 2014 $112,500.00

Expected unit sales for January, 2014 $113,000.00

Bullwinkle, Inc. likes to keep 10% of the next month's unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivalbe are collected in the month of sale, and 15% of the Account Receivable are collected in the mont after sale. Account Receivable on December 31,2013, totaled $183,780.

Desired Ending Direct Materials 3/31/14 12625.0lbs

Metal, Plastic, and Rubber together are $0.75 per pound per unit.

Bullwinkle, Inc. likes to keep 5%of the materials needed ofr the next month in ending inventory. Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts Payable on December 31. 2013 totaled $120,595 and were paid in full in January 2014. Beginning Raw Materials on December 31,2013 was 11,295 pounds.

*Direct Labor

Labor requires 2 pounds per unit for completion and is paid at a rate of $8.00 per hour.

*Manufacturing Overhead

Indirect Materials $0.30 per labor hour

Indirect Labor $0.50 per labor hour

Utilities $0.45 per labor hour

Maintenace $0.25 per labor hour

Salaries $42,000 per month

Depreciation $16,800 per month

Property Taxes $2675 per month

insurance $1200 per month

Janitorial $1300 per month

All manufacturing overhead costs are variable except salaries, depreciation, property taxes, insurance and janitorial.

*Selling and Administrative Expenses

Variable selling and Administrative cost per unit is $1.60

Advertising $15,000 a month

Insurance $1,400 a month

Salaries $72,000 a month

Depreciation $2,500 a month

Other fixed cost $3,000 a month

*Other info

Cash balance on December 31,2013, totaled $100,500 but management has decided it would like to maintain a cash balance of at least $800,000 beginning on January 31, 2014. Dividends are paid each month at the rate of $2.50 per share for 5000 shares outstanding. The company has an open line of credit with Exchange Bank. The terms of agreement requires borrowing to be in $1000 increments at 8% interest. The funds borrowed in January 2014 were paid back on February 28, 2014. A $500,000 equipment purchase is planned for February, 2014

Prepare Cash Budget (Use picture format please.)

Variable Costs			Jan	Feb	Mar	Total
Indirect Materials ($.30/hour)			$ 6,777.00	$ 6,771.00	$ 7,014.00	$ 20,562.00
Indirect Labor ($.50/hour)			$ 11,295.00	$ 11,285.00	$ 11,690.00	$ 34,270.00
Utilities($.45/hour)			$ 10,165.50	$ 10,156.50	$ 10,521.00	$ 30,843.00
Mainatenance($.25/hour)			$ 5,647.50	$ 5,642.50	$ 5,845.00	$ 17,135.00
Total Variable costs			$ 33,885.00	$ 33,855.00	$ 35,070.00	$ 102,810.00
Fixed Costs
Salaries			$ 42,000.00	$ 42,000.00	$ 42,000.00	$ 126,000.00
Depreciation			$ 16,800.00	$ 16,800.00	$ 16,800.00	$ 50,400.00
Property Taxes			$ 2,675.00	$ 2,675.00	$ 2,675.00	$ 8,025.00
Insurance			$ 1,200.00	$ 1,200.00	$ 1,200.00	$ 3,600.00
Janitorial			$ 1,300.00	$ 1,300.00	$ 1,300.00	$ 3,900.00
Total Fixed Costs			$ 63,975.00	$ 63,975.00	$ 63,975.00	$ 191,925.00
Total Manufacturing Overhead			$ 97,860.00	$ 97,830.00	$ 99,045.00	$ 294,735.00
Direct Labor hours			22590	22570	23380	$ 68,540.00
MO/DL						$ 4.30

ayout Formulas Dats Revien Vie Hayes Company Cash Budget For the Year Ending December 31, 2014 Quarter Assumption $ 25,500 S 15,000 5 19,400 6 Beginning cash balance C-31-U) 7 Add: Receipts 8 Collections from customers 9 Sale of securities 10 Total receipts 11 Total available cash 12 Less: Disbursements 13 Direct materials 14 Direct labor $ 38,000 198,000 228,000 258,000 168,000 2,000 170,000 208,000 198,000 223,500 228,000 243,000 258,000 277,400 23,200 62,000 53,300 27,200 72,000 56,300 b43,000 10,000 3,000 211,500 31,200 82,000 59,300 45,000 35,200 92,000 62,300 47,000 115: Manufacturing overhead 16 Selling and administrative expenses 41,000b 17 | Purchase of truck 18 Income tax expense 19 Total disbursements 3,000 182,500 3,000 220,500 3,000 239,500 Excess (deficiency) of available cash 20 over cash disbursements 21 Financing 2 Add: Borrowings 3 Less: Repayments including interest 24 Ending cash balance 25 26 $57,100-$3,800 depreciation 27 $42,000-$1,000 depreciation 12,000 22,500 37,900 3,000 3,100 $ 19,400 $ 25,500 S 15,000 $ 37,900