Question

]

Please help us to answer:

0 6 -6 ABC Company -7 8 Additional details continued: -9. ABC Company will pay $60,000 in dividends in Q4 0 Currently, the cash balance in the bank is $15,000. ABC Company wants to maintain a 1 minimum cash balance of $10,000 in the bank for each quarter. 2 Budgeted sales volumes are: 13 Q1 Q2 J Q3 | Q4 L 14 Selling and Administration expenses for the budgeted year are as follows: 5 Variable Cost: Delivery costs are based on $ 0.3 per sales unit. 17 Commissions are based on 0.1% of sales value. 18 19 Fixed Costs: Accounting & professional services 1800) Administrative & Sales Salaries 77000) -2 Advertising 9000 -3 Computer costs 4200 -4 Depreciation 35000 5 Office Supplies 2300 6 Printing 1400 -7 Insurance 1200 Property taxes 500 9 Rent 20000 0 Utilities 3000 Total Fixed Costs 155400 2 3. ABC Company will purchase a new machine on 192020 worth $700,00 and will make two equal -4 payments. The first payment will be in Q1 and the second in Q3. Assume the machine was 5 purchased at the beginning of the year. 6 . Taxation is 30% on taxable income and paid at the end of Q4 each year, 7 Balance sheet information as at 31st December 2019 is as follows: 8 PPE $100,000 Accumulated Depreciation $100,000 19 Common Stock $280,000 Retained Earnings $145,000 0 For Cost of goods sold (COGS); 1 Add total costs of production + Beginning Finished goods - Ending Finished goods Inventory. 2 Interest of $ 9000 on loans is paid in total at the end of the year and is a fixed cost. 00 1 0 6 -6 ABC Company -7 8 Additional details continued: -9. ABC Company will pay $60,000 in dividends in Q4 0 Currently, the cash balance in the bank is $15,000. ABC Company wants to maintain a 1 minimum cash balance of $10,000 in the bank for each quarter. 2 Budgeted sales volumes are: 13 Q1 Q2 J Q3 | Q4 L 14 Selling and Administration expenses for the budgeted year are as follows: 5 Variable Cost: Delivery costs are based on $ 0.3 per sales unit. 17 Commissions are based on 0.1% of sales value. 18 19 Fixed Costs: Accounting & professional services 1800) Administrative & Sales Salaries 77000) -2 Advertising 9000 -3 Computer costs 4200 -4 Depreciation 35000 5 Office Supplies 2300 6 Printing 1400 -7 Insurance 1200 Property taxes 500 9 Rent 20000 0 Utilities 3000 Total Fixed Costs 155400 2 3. ABC Company will purchase a new machine on 192020 worth $700,00 and will make two equal -4 payments. The first payment will be in Q1 and the second in Q3. Assume the machine was 5 purchased at the beginning of the year. 6 . Taxation is 30% on taxable income and paid at the end of Q4 each year, 7 Balance sheet information as at 31st December 2019 is as follows: 8 PPE $100,000 Accumulated Depreciation $100,000 19 Common Stock $280,000 Retained Earnings $145,000 0 For Cost of goods sold (COGS); 1 Add total costs of production + Beginning Finished goods - Ending Finished goods Inventory. 2 Interest of $ 9000 on loans is paid in total at the end of the year and is a fixed cost. 00 1 Sales Budget 2 3 1 4 Quarter 4,730 4,720 4,620 4,920 18,990 Quarter Expected Sales units Selling Price Total Sales $ 550 $550 $2,601,500 $2,596,000 $550 $550 $ 550 $2,541,000 $2,706,000 $10,444,500 3 4 3 4 Year UI US Manufacturing Overhead Budget 1 2 Budeted Production units Machine hours per unit Total Budeted Machine hours 3 m O Budgeted Manufacturing Overhead 1 Test: 2 3 Predetermined Overhead Rate: 4 5 6 Estimated Manufacturing Overhead Machine Hours = 8 9 CO = $ per machine hour 1 D E F G - 3 4 Year A B 4 CASH BUDGET 5 for the year ending 31st December 2020 6 2 7 Beginning cash balance 8 Add: Receipts 9 Collections from Customers 10 Total receipts: 11 Total available cash: 12 Less: Disbursements 13 Direct Materials 14 Direct Labour 15 Manufacturing Overhead 16 Selling and Administrative expenses 17 Purchase of a truck 18 Income Tax expense 19 Dividends 20 Total disbursements: Excess (deficiency) of available cash over 21 cash disbursements 22 Financing 23 Add: Borrowings 24 Less: Repayments (including interest) 25 Ending cash balance 26 27 Notes: 28 Minimum cash balance: $10,000 29 Interest on loans to be paid in Quarter 4 30 Taxation amount taken from the Income Statement E F G $ A B D 1 Cost of Goods Sold 2 Direct materials Used 3 Direct labour costs 4 Manufacturing Overhead Costs 5 Total Costs of Manufacture: 6 Beginning Finished Goods Inventory 7 Less: Ending Finished Goods Inventory 8 Cost of Goods Sold 9 10 00 $ 7 CVP Income Statement for year ended 31st December 2020 9 $ 10 Sales 11 Less: Variable Costs 12 Direct materials 13 Direct Labour 14 Manufacturing Variable Overhead costs 15 Selling & Administration variable costs 16 Adjustment for Finished Inventory 17 Beginning Finished Goods Inventory 18 Less: Ending Finished Goods Inventory 19 Total Contribution Margins 20 Less: Fixed costs 21 Selling & Administration fixed costs 22 Interest costs 23 Income Tax 24 Net Income after taxation 25 26 Check result with Income Statement: 27 I G 1 2 Total A B D E F Ending Finished Goods Inventory Budget Cost Element Quantity Cost 3 Direct Materials 4 + Direct Labour 5 + Manufacturing Overhead 5 = Product Cost Per Unit 7 X Ending Inventory in Units 3 Ending Finished Goods Inventory 0 1 0 6 -6 ABC Company -7 8 Additional details continued: -9. ABC Company will pay $60,000 in dividends in Q4 0 Currently, the cash balance in the bank is $15,000. ABC Company wants to maintain a 1 minimum cash balance of $10,000 in the bank for each quarter. 2 Budgeted sales volumes are: 13 Q1 Q2 J Q3 | Q4 L 14 Selling and Administration expenses for the budgeted year are as follows: 5 Variable Cost: Delivery costs are based on $ 0.3 per sales unit. 17 Commissions are based on 0.1% of sales value. 18 19 Fixed Costs: Accounting & professional services 1800) Administrative & Sales Salaries 77000) -2 Advertising 9000 -3 Computer costs 4200 -4 Depreciation 35000 5 Office Supplies 2300 6 Printing 1400 -7 Insurance 1200 Property taxes 500 9 Rent 20000 0 Utilities 3000 Total Fixed Costs 155400 2 3. ABC Company will purchase a new machine on 192020 worth $700,00 and will make two equal -4 payments. The first payment will be in Q1 and the second in Q3. Assume the machine was 5 purchased at the beginning of the year. 6 . Taxation is 30% on taxable income and paid at the end of Q4 each year, 7 Balance sheet information as at 31st December 2019 is as follows: 8 PPE $100,000 Accumulated Depreciation $100,000 19 Common Stock $280,000 Retained Earnings $145,000 0 For Cost of goods sold (COGS); 1 Add total costs of production + Beginning Finished goods - Ending Finished goods Inventory. 2 Interest of $ 9000 on loans is paid in total at the end of the year and is a fixed cost. 00 1 0 6 -6 ABC Company -7 8 Additional details continued: -9. ABC Company will pay $60,000 in dividends in Q4 0 Currently, the cash balance in the bank is $15,000. ABC Company wants to maintain a 1 minimum cash balance of $10,000 in the bank for each quarter. 2 Budgeted sales volumes are: 13 Q1 Q2 J Q3 | Q4 L 14 Selling and Administration expenses for the budgeted year are as follows: 5 Variable Cost: Delivery costs are based on $ 0.3 per sales unit. 17 Commissions are based on 0.1% of sales value. 18 19 Fixed Costs: Accounting & professional services 1800) Administrative & Sales Salaries 77000) -2 Advertising 9000 -3 Computer costs 4200 -4 Depreciation 35000 5 Office Supplies 2300 6 Printing 1400 -7 Insurance 1200 Property taxes 500 9 Rent 20000 0 Utilities 3000 Total Fixed Costs 155400 2 3. ABC Company will purchase a new machine on 192020 worth $700,00 and will make two equal -4 payments. The first payment will be in Q1 and the second in Q3. Assume the machine was 5 purchased at the beginning of the year. 6 . Taxation is 30% on taxable income and paid at the end of Q4 each year, 7 Balance sheet information as at 31st December 2019 is as follows: 8 PPE $100,000 Accumulated Depreciation $100,000 19 Common Stock $280,000 Retained Earnings $145,000 0 For Cost of goods sold (COGS); 1 Add total costs of production + Beginning Finished goods - Ending Finished goods Inventory. 2 Interest of $ 9000 on loans is paid in total at the end of the year and is a fixed cost. 00 1 Sales Budget 2 3 1 4 Quarter 4,730 4,720 4,620 4,920 18,990 Quarter Expected Sales units Selling Price Total Sales $ 550 $550 $2,601,500 $2,596,000 $550 $550 $ 550 $2,541,000 $2,706,000 $10,444,500 3 4 3 4 Year UI US Manufacturing Overhead Budget 1 2 Budeted Production units Machine hours per unit Total Budeted Machine hours 3 m O Budgeted Manufacturing Overhead 1 Test: 2 3 Predetermined Overhead Rate: 4 5 6 Estimated Manufacturing Overhead Machine Hours = 8 9 CO = $ per machine hour 1 D E F G - 3 4 Year A B 4 CASH BUDGET 5 for the year ending 31st December 2020 6 2 7 Beginning cash balance 8 Add: Receipts 9 Collections from Customers 10 Total receipts: 11 Total available cash: 12 Less: Disbursements 13 Direct Materials 14 Direct Labour 15 Manufacturing Overhead 16 Selling and Administrative expenses 17 Purchase of a truck 18 Income Tax expense 19 Dividends 20 Total disbursements: Excess (deficiency) of available cash over 21 cash disbursements 22 Financing 23 Add: Borrowings 24 Less: Repayments (including interest) 25 Ending cash balance 26 27 Notes: 28 Minimum cash balance: $10,000 29 Interest on loans to be paid in Quarter 4 30 Taxation amount taken from the Income Statement E F G $ A B D 1 Cost of Goods Sold 2 Direct materials Used 3 Direct labour costs 4 Manufacturing Overhead Costs 5 Total Costs of Manufacture: 6 Beginning Finished Goods Inventory 7 Less: Ending Finished Goods Inventory 8 Cost of Goods Sold 9 10 00 $ 7 CVP Income Statement for year ended 31st December 2020 9 $ 10 Sales 11 Less: Variable Costs 12 Direct materials 13 Direct Labour 14 Manufacturing Variable Overhead costs 15 Selling & Administration variable costs 16 Adjustment for Finished Inventory 17 Beginning Finished Goods Inventory 18 Less: Ending Finished Goods Inventory 19 Total Contribution Margins 20 Less: Fixed costs 21 Selling & Administration fixed costs 22 Interest costs 23 Income Tax 24 Net Income after taxation 25 26 Check result with Income Statement: 27 I G 1 2 Total A B D E F Ending Finished Goods Inventory Budget Cost Element Quantity Cost 3 Direct Materials 4 + Direct Labour 5 + Manufacturing Overhead 5 = Product Cost Per Unit 7 X Ending Inventory in Units 3 Ending Finished Goods Inventory 0 1