PROTECTED VIEW Be carefulfiles from the Internet can contain viruses. Unless you need to edit, it's safer to stay fr B D E F G H Objective: This assignment is intended to give you experience in preparing a Master Budget and will help you understand the relationship between the Operation Budget and the Financial Budget. Use only the information provided in the text and the excel schedules from the Master Budget Student Data File. Required: Complete the following schedules: Income Statement - Exhibit (H) Contribution Margin Exhibit (K): Compute the contribution margin and ratio for each of the three products. Using a weighted average CM, compute the Break Even point for the full year 2015. Explain how managers can use this data. Cash Flow - Exhibit (G) Balance Sheet (1) Notes On Student Data: All the assumptions stated in the problem have been summarized for you in Exhibit 1 of the Student Data The sales plan, production plan, flexible resources, AR, materials and staffing are complete and correct, there are no tricks. The Income Statement, Cash Flow statement and Balance Sheet contain the correct balancing numbers. No further computations are required in the line of credit on the cash flow. Assumes that everything produced is sold. No Inventory is required! . 3 3 2 1 2 3 4 5 6 37 38 39 40 41 42 43 44 45 46 47 48 49 Hints on Specific Master Budget Computations: To compute depreciation for the income statement, read the following: The capital investment policy is to purchase, each January and July, $5,000 of machinery and equipment per carpenter employed during that month. Judd's recognizes depreciation at the rate of 10% of the year-end balance of the machinery and equipment account. To compute the new AR Balance, consider the following: Judd's Reproductions recognizes the expense of cash discounts, credit card fees, and bad debts in the month of the sale. Use the sales amounts on the AR schedule and the applicable type of sales. For example, bad debts is based only Export Sales only. Read this paragraph carefully. Further the total of the bad debts, credit card fees and cash discounts are considered non-collectible and therefore reduce the amount of the receivable balance and effect the balance sheet calculations. Re rent: Judd's pays rent quarterly beginning January 1 of each year...If you compute rent monthly your cash flow balances will not reconcile. Interest Income and interest expense are correct on the Cash Flow schedule, however, Assignment Background Data Salesplan (A) Prodplan (B) DL stato FlexResourer) Projected Unit Sales - DEMAND 2015 CHAIRS TABLES 1,020 200 1,191 237 1,179 243 1,195 250 1,200 1,204 255 1,194 242 1,199 1.222 243 1,219 248 1,207 244 1.192 255 MONTH January February March April May Uude July August September October November December 252 CABINETS 109 120 119 126 122 125 123 121 127 126 126 119 253 Planners project the Judd's Reproductions balance sheet at January 1, 2015, to be as follows: Judd's Reproductions Balance Sheet January 1, 2015 Bank loan Accounts receivable Machinery (nut book value) Total $50,000 575,008 360.000 5985.00 Shareholder's equity Total 985.00 $985.00 The information and data provided in Part I and Part II was the first attempt by Judd's for setting an annual Master Budget. However, they have yet to establish an ongoing process of collecting the actual monthly financial results for comparing to the monthly budget, compute variances and take corrective actions In Part of the student data we can see as a company Judd's prepares and sets standards for direct material and direct labor on each of the three products produced. Refer to Schedule A Judd's has begun to use this information to investigate possible issues in productivity, material price and wage rate issues. To date, these efforts have been very informal conversations between finance and operations. There is no monthly report or variance analysis prepared to "shine the light on the standard cost variances nor is there responsibility assigned for investigating and correcting them. Product and purchasing managers have not been involved in any of these variance discussions Further, because they have not finalized their budget process they have never used or investigated the possibility of using a flexible budget. As a result they do not take full advantage of the expected standards in terms of assessing price and quantity/efficiency variances arising from actual costs to High performance problems. For the purposes of this case we have compiled the actual cost results that you must use to compare to the pre determined material and labor standards for each of ACCT 3221 Judd's DataPart 12 File Home Data View Insert Page Layout Formulas Review Help Tell me what you w PROTECTED VIEW Be careful--files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protect L18 A B C D M N 1 Assignment: Judd's Reproductions Complete the 12/31/2015 balance for all Four accounts. 3 Annual Budget 6. Balance Sheet 7 Comparative Balance Sheet 2016 (Exhibit) 8 9 1/1/2015 Annual Activity 12/31/2015 Source 10 11 Cash 50.000 From schedule G 12 13 Accounts Receivable $ 575,000 Annual activity = Net Change in AR (F) 14 15 PPSE 5 380,000 300,000 Show addition to PPE less Depreciations 16 17 Total Assets 985.00 $1,665,460 18 19 20 Bank Loan Complete 21 22 23 Shareholders Equity $985,00B $1,665,460 24 25 26 Nche. Al Balances are accurately stated, if have rounding errors they must be explained 27 28 Direct input from referenced schedule 29 20 Calculation 31 Complete Do not change 33 34 20 37 39 40 41 42 43 44 45 4 48 49 50 50 52 53 55 0 57 Background nat PROTECTED VIEW Be carefulfiles from the Internet can contain viruses. Unless you need to edit, it's safer to stay fr B D E F G H Objective: This assignment is intended to give you experience in preparing a Master Budget and will help you understand the relationship between the Operation Budget and the Financial Budget. Use only the information provided in the text and the excel schedules from the Master Budget Student Data File. Required: Complete the following schedules: Income Statement - Exhibit (H) Contribution Margin Exhibit (K): Compute the contribution margin and ratio for each of the three products. Using a weighted average CM, compute the Break Even point for the full year 2015. Explain how managers can use this data. Cash Flow - Exhibit (G) Balance Sheet (1) Notes On Student Data: All the assumptions stated in the problem have been summarized for you in Exhibit 1 of the Student Data The sales plan, production plan, flexible resources, AR, materials and staffing are complete and correct, there are no tricks. The Income Statement, Cash Flow statement and Balance Sheet contain the correct balancing numbers. No further computations are required in the line of credit on the cash flow. Assumes that everything produced is sold. No Inventory is required! . 3 3 2 1 2 3 4 5 6 37 38 39 40 41 42 43 44 45 46 47 48 49 Hints on Specific Master Budget Computations: To compute depreciation for the income statement, read the following: The capital investment policy is to purchase, each January and July, $5,000 of machinery and equipment per carpenter employed during that month. Judd's recognizes depreciation at the rate of 10% of the year-end balance of the machinery and equipment account. To compute the new AR Balance, consider the following: Judd's Reproductions recognizes the expense of cash discounts, credit card fees, and bad debts in the month of the sale. Use the sales amounts on the AR schedule and the applicable type of sales. For example, bad debts is based only Export Sales only. Read this paragraph carefully. Further the total of the bad debts, credit card fees and cash discounts are considered non-collectible and therefore reduce the amount of the receivable balance and effect the balance sheet calculations. Re rent: Judd's pays rent quarterly beginning January 1 of each year...If you compute rent monthly your cash flow balances will not reconcile. Interest Income and interest expense are correct on the Cash Flow schedule, however, Assignment Background Data Salesplan (A) Prodplan (B) DL stato FlexResourer) Projected Unit Sales - DEMAND 2015 CHAIRS TABLES 1,020 200 1,191 237 1,179 243 1,195 250 1,200 1,204 255 1,194 242 1,199 1.222 243 1,219 248 1,207 244 1.192 255 MONTH January February March April May Uude July August September October November December 252 CABINETS 109 120 119 126 122 125 123 121 127 126 126 119 253 Planners project the Judd's Reproductions balance sheet at January 1, 2015, to be as follows: Judd's Reproductions Balance Sheet January 1, 2015 Bank loan Accounts receivable Machinery (nut book value) Total $50,000 575,008 360.000 5985.00 Shareholder's equity Total 985.00 $985.00 The information and data provided in Part I and Part II was the first attempt by Judd's for setting an annual Master Budget. However, they have yet to establish an ongoing process of collecting the actual monthly financial results for comparing to the monthly budget, compute variances and take corrective actions In Part of the student data we can see as a company Judd's prepares and sets standards for direct material and direct labor on each of the three products produced. Refer to Schedule A Judd's has begun to use this information to investigate possible issues in productivity, material price and wage rate issues. To date, these efforts have been very informal conversations between finance and operations. There is no monthly report or variance analysis prepared to "shine the light on the standard cost variances nor is there responsibility assigned for investigating and correcting them. Product and purchasing managers have not been involved in any of these variance discussions Further, because they have not finalized their budget process they have never used or investigated the possibility of using a flexible budget. As a result they do not take full advantage of the expected standards in terms of assessing price and quantity/efficiency variances arising from actual costs to High performance problems. For the purposes of this case we have compiled the actual cost results that you must use to compare to the pre determined material and labor standards for each of ACCT 3221 Judd's DataPart 12 File Home Data View Insert Page Layout Formulas Review Help Tell me what you w PROTECTED VIEW Be careful--files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protect L18 A B C D M N 1 Assignment: Judd's Reproductions Complete the 12/31/2015 balance for all Four accounts. 3 Annual Budget 6. Balance Sheet 7 Comparative Balance Sheet 2016 (Exhibit) 8 9 1/1/2015 Annual Activity 12/31/2015 Source 10 11 Cash 50.000 From schedule G 12 13 Accounts Receivable $ 575,000 Annual activity = Net Change in AR (F) 14 15 PPSE 5 380,000 300,000 Show addition to PPE less Depreciations 16 17 Total Assets 985.00 $1,665,460 18 19 20 Bank Loan Complete 21 22 23 Shareholders Equity $985,00B $1,665,460 24 25 26 Nche. Al Balances are accurately stated, if have rounding errors they must be explained 27 28 Direct input from referenced schedule 29 20 Calculation 31 Complete Do not change 33 34 20 37 39 40 41 42 43 44 45 4 48 49 50 50 52 53 55 0 57 Background nat