Question: Problem 20-4B Manufacturing: Preparation of a complete master budget P1 P2 P3 The management of N... Using an "EXCEL" spreadsheet, create budgets (Items 1-9). Problem 20-4B Manufacturing: Preparation of a complete master budget P1 P2 P3 The management of Nabar Manufacturing prepared the following estimated balance sheet for June, 2015: NABAR MANUFACTURING Estimated Balance Sheet June 30, 2015 Assets Liabilities and Equity $ 40,000 ...249.900 35,000 Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciacion.... Equipment, net Accounts payable Income taxes payable. Short-torm notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders equity Total labilities and equity $ 51,400 10,000 24,000 85,400 300,000 385,400 600,000 60,580 660.580 $1,045,980 565.980 720,000 240,000) 480,000 Total assecs 51.045,980 To prepare a master budget for July, August, and September of 2015, management gathers the following information: e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is f. Monthly general and administrative expenses include $9,000 administrative salaries and 0.9% g. Sales representatives, commissions are 10% of sales and are paid in the month of the sales. The h. The company expects 30% of sales to be for cash and the remaining 70% on credit. Receivables i. All raw materials purchases are on credit, and no payables arise from any other transactions. One J. Dividends of $20,000 are to be declared and paid in August. $2.70 per direct labor hour. Depreciation of $20,000 per month is treated as fixed factory overhead. monthly interest on the long-term note payable. sales managers monthly salary is $3,500 per month. are collected in full in the month following the sale (none are collected in the month of the sale) months raw materials purchases are fully paid in the next month. k. Income taxes payable at June 30 will be paid in July. Income tax expense will be assessed at 35% in the quarter and paid in October I. Equipment purchases of $100,000 are budgeted for the last day of September. m. The minimum ending cash balance for all months is $40,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum. Short-term notes require an interest payment of 196 at each month-end (before any repayment). If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance. Required Prepare the following budgets and other financial intormation as required. All budgets and other financial information should be prepared for the third calendar quarter, except as otherwise noted below. Round calculations to the nearest whole dolla 1. Factory overhead budget. 2. Selling expense budget 3. General and administrative expense budget. 4. Cash budget. 5. Budgeted income statement for the entire quarter (not for each month separately) Show transcribed image text Problem 20-4B Manufacturing: Preparation of a complete master budget P1 P2 P3 The management of Nabar Manufacturing prepared the following estimated balance sheet for June, 2015: NABAR MANUFACTURING Estimated Balance Sheet June 30, 2015 Assets Liabilities and Equity $ 40,000 ...249.900 35,000 Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment, gross Accumulated depreciacion.... Equipment, net Accounts payable Income taxes payable. Short-torm notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity Total labilities and equity $ 51,400 10,000 24,000 85,400 300,000 385,400 600,000 60,580 660.580 $1,045,980 565.980 720,000 240,000) 480,000 Total assecs 51.045,980 To prepare a master budget for July, August, and September of 2015, management gathers the following information:

a. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is

b. Monthly general and administrative expenses include $9,000 administrative salaries and 0.9%

c. Sales representatives, commissions are 10% of sales and are paid in the month of the sales.

d. The company expects 30% of sales to be for cash and the remaining 70% on credit. Receivables

e. All raw materials purchases are on credit, and no payables arise from any other transactions. One

f. Dividends of $20,000 are to be declared and paid in August. $2.70 per direct labor hour. Depreciation of $20,000 per month is treated as fixed factory overhead. monthly interest on the long-term note payable. sales manager's monthly salary is $3,500 per month. are collected in full in the month following the sale (none are collected in the month of the sale) month's raw materials purchases are fully paid in the next month.

g. Income taxes payable at June 30 will be paid in July. Income tax expense will be assessed at 35% in the quarter and paid in October

h. Equipment purchases of $100,000 are budgeted for the last day of September.

i. The minimum ending cash balance for all months is $40,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum. Short-term notes require an interest payment of 196 at each month-end (before any repayment). If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance. Required Prepare the following budgets and other financial intormation as required. All budgets and other financial information should be prepared for the third calendar quarter, except as otherwise noted below. Round calculations to the nearest whole dolla

1. Factory overhead budget.

2. Selling expense budget

3. General and administrative expense budget.

4. Cash Receipts from Customers

5. Budgeted Cash Payments for Raw Materials

6. Cash Budget

7. Budgeted income statement for the entire quarter (not for each month separately)

8. Budgeted Balance Sheet

9. Statement of Retained Earnings