Q1- Operating Budget (15 points) You have been asked by your VP of Finance to put together the Operating Budgets and the Projected Income Statement for Comfy Bedding Co, using the information provided You can decide to show the budget either in QUARTERLY or MONTHLY format (Hint - whichever time period you choose, please ensure your number matches with that particular period) BONUS PTS - What is the budget cash outflow for inventory purchase next year? (Assumes 70% of current quarter purchases gets paid SAME quarter, and 30% NEXT quarter) - 3 points Comfy Bedding Co. LY Q1 Sale - Units (equally divided by 3 - if show monthly) LY Q2 Sale - Units (equally divided by 3 - if show monthly) LY Q3 Sale - Units (equally divided by 3 - if show monthly) LY Q4 Sale - Units (equally divided by 3 - if show monthly) LY Sales Price Budgeted Sales Price Increase for next year Organization Sales Growth Target (in Units) Product Allowance (% of Sales Revenue) Beginning Inventory for Next Year (Units) LY Average Cost per Inventory Budgeted Increase in Average Cost per Inventory next year Desired Ending Inventory (% of Sales Unit) SG&A Expenses $ $ 3,720 5,450 4,040 6,750 325.00 2.50% 5.00% 1.50% 850 200.00 3.25% 15.00% SG&A Expenses # of Non-Sales FT Employees (FTE) Average Non-Sales FTE Cost/year Incremental Non-Sales FTE hire to support growth New FTE to start Q1 (Jan) New FTE to start Q3 (July) # of Sales FT Employees (FTE) Sales Commission for Sales FTE (% of Gross Sales Revenu # of Stores & Offices Average Monthly Rent per office Variable Marketing Expense (per unit sold) Fixed Monthly Marketing Expense $ es $ $ $ Fixed Monthly IT Expenses $ Monthly Supplies Expenses (per FTE)- sales and non-sal $ 15 65,000 3 1 2 5 5.50% 3 7,000.00 0.50 2,000 3,500 225 Q2- Debt Paydown Schedule (8 points) After completing the budget for Comfy Bedding Co., you are informed that the company will have to borrow debt to ensure sufficent cash Create a debt repayment schedule based on the provided debt terms (Assuming the debt will start Jan 1st of next year) BONUS PTS - Re-do the Project Income Statement based on the company accepting the debt (Hint - what additional expense will need to be included?) - 2 points Principal Annualized Interest Rate Terms (years) Paid monthly $ 550,000 12.50% 2