Required information The following information applies to the questions displayed below.] Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2017 and reports a balance sheet at December 31, 2016 as follows Endless Mountain Company Balance Sheet December 31, 2016 Assets Current assets: Cash Accounts receivable (net) Raw materials inventory (4,500 yards) Finished goods inventory (1,500 units) $ 46,200 260,000 11,250 32,250 Total current assets Plant and equipment: $349,700 Buildings and equipment Accumulated depreciation 900,000 (292,000 608,000 $957,700 Plant and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities: $158,000 Accounts payable Stockholders' equity: Common stock $ 419,800 379,900 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 799,700 $957,700 the following set of assumptions to help create the 2017 budget: 1. The budgeted unit sales are 12,000 units, 37,000 units, 15,000 units, and 25,000 units for quarters 1-4, respectively Notice that the company experiences peak sales in the second and fourth quarters. The budgeted selling price for the year is $32 per unit. The budgeted unit sales for the first quarter of 2018 is 13,000 units. 2. All sales are on credit. Uncollectible accounts are negligible and can be ignored. Seventy-five percent of all credit sales are collected in the quarter of the sale and 25% are collected in the subsequent quarter 3. Each quarter's ending finished goods inventory should equal 15% of the next quarter's unit sales. 4. Each unit of finished goods requires 3.5 yards of raw material that costs $3.00 per yard. Each quarter's ending raw materials inventory should equal 10% of the next quarter's production needs. The estimated ending raw materials inventory on December 31, 2017 is 5,000 yards 5. Seventy percent of each quarter's purchases are paid for in the quarter of purchase. The remaining 30% of each 6. Direct laborers are paid $18 an hour and each unit of finished goods requires 0.25 direct labor-hours to complete. All 7. The budgeted variable manufacturing overhead per direct labor-hour is $3.00. The quarterly fixed manufacturing quarter's purchases are paid in the following quarter direct labor costs are paid in the quarter incurred overhead is $150,000 including $20,000 of depreciation on equipment. The number of direct labor-hours is used as the allocation base for the budgeted plantwide overhead rate. All overhead costs (excluding depreciation) are paid in the quarter incurred 8. The budgeted variable selling and administrative expense is $1.25 per unit sold. The fixed selling and administrative expenses per quarter include advertising ($25,000), executive salaries ($64,000), insurance ($12,000), property tax ($8,000), and depreciation expense ($8,000). All selling and administrative expenses (excluding depreciation) are paid in the quarter incurred 9. The company plans to maintain a minimum cash balance at the end of each quarter of $30,000. Assume that amy borrowings take place on the first day of the quarter. To the extent possible, the company will repay principal and interest on any borrowings on the last day of the fourth quarter. The company's lender imposes a simple interest rate of 3% per quarter on any borrowings. 10. Dividends of $15,000 will be declared and paid in each quarter. 11. The company uses a last-in, first-out (LIFO) inventory flow assumption. This means that the most recently purchased raw materials are the "first-out" to production and the most recently completed finished goods are the "first-out" to customers Prev 1 of 1 Next Integration Activity #5 0 Help Save & Exit Submit Check my work Prepare the quarterly cash budget. (Round final answers to the nearest whole dollar value.) Endless Mountain Company Cash Budget For the Year Ended December 31, 2017 20 points Quarter Year Beginning cash balance Add cash receipts: Print Collection from customers Total cash available Less cash disbursements References 0 Direct materials Direct labor Manufacturing overhead Selling and administrative Dividends Total cash disbursements Excess or (deficiency) of cash available over disbursements Financing: 0 0 Borrowings (at the beginnings of quarters) Repayment (at end of the year) Interest (at 3% per quarter) Total financing Ending cash balance 0 0 Check my work 7. Quarterly selling and administrative expense budget. 8. Quarterly cash budget. 9. Income statement for the year ended December 31, 2017. 10. Balance sheet at December 31, 2017. 20 points Complete this question by entering your answers in the tabs below eBook Print References Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 ERequired 10 Prepare the income statement for the year ended December 31, 2017. (Round final answers to the nearest whole dollar value.) Endless Mountain Company Budgeted Income Statement For the Year Ended December 31, 2017 (Absorption costing basis) 0 Required 8 Required 10> Mc Integration Activity #5 0 Help Save & Exit Submit Check my work Budgeted Balance Sheet December 31, 2017 Assets Current assets 20 points eBook Print References Total current assets Plant and equipment Plant and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities Stockholders' equity: Total stockholders' equity Total liabilities and stockholders' equity 0 Graw Hill Prev 1 of 1 Next> Required information The following information applies to the questions displayed below.] Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2017 and reports a balance sheet at December 31, 2016 as follows Endless Mountain Company Balance Sheet December 31, 2016 Assets Current assets: Cash Accounts receivable (net) Raw materials inventory (4,500 yards) Finished goods inventory (1,500 units) $ 46,200 260,000 11,250 32,250 Total current assets Plant and equipment: $349,700 Buildings and equipment Accumulated depreciation 900,000 (292,000 608,000 $957,700 Plant and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities: $158,000 Accounts payable Stockholders' equity: Common stock $ 419,800 379,900 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 799,700 $957,700 the following set of assumptions to help create the 2017 budget: 1. The budgeted unit sales are 12,000 units, 37,000 units, 15,000 units, and 25,000 units for quarters 1-4, respectively Notice that the company experiences peak sales in the second and fourth quarters. The budgeted selling price for the year is $32 per unit. The budgeted unit sales for the first quarter of 2018 is 13,000 units. 2. All sales are on credit. Uncollectible accounts are negligible and can be ignored. Seventy-five percent of all credit sales are collected in the quarter of the sale and 25% are collected in the subsequent quarter 3. Each quarter's ending finished goods inventory should equal 15% of the next quarter's unit sales. 4. Each unit of finished goods requires 3.5 yards of raw material that costs $3.00 per yard. Each quarter's ending raw materials inventory should equal 10% of the next quarter's production needs. The estimated ending raw materials inventory on December 31, 2017 is 5,000 yards 5. Seventy percent of each quarter's purchases are paid for in the quarter of purchase. The remaining 30% of each 6. Direct laborers are paid $18 an hour and each unit of finished goods requires 0.25 direct labor-hours to complete. All 7. The budgeted variable manufacturing overhead per direct labor-hour is $3.00. The quarterly fixed manufacturing quarter's purchases are paid in the following quarter direct labor costs are paid in the quarter incurred overhead is $150,000 including $20,000 of depreciation on equipment. The number of direct labor-hours is used as the allocation base for the budgeted plantwide overhead rate. All overhead costs (excluding depreciation) are paid in the quarter incurred 8. The budgeted variable selling and administrative expense is $1.25 per unit sold. The fixed selling and administrative expenses per quarter include advertising ($25,000), executive salaries ($64,000), insurance ($12,000), property tax ($8,000), and depreciation expense ($8,000). All selling and administrative expenses (excluding depreciation) are paid in the quarter incurred 9. The company plans to maintain a minimum cash balance at the end of each quarter of $30,000. Assume that amy borrowings take place on the first day of the quarter. To the extent possible, the company will repay principal and interest on any borrowings on the last day of the fourth quarter. The company's lender imposes a simple interest rate of 3% per quarter on any borrowings. 10. Dividends of $15,000 will be declared and paid in each quarter. 11. The company uses a last-in, first-out (LIFO) inventory flow assumption. This means that the most recently purchased raw materials are the "first-out" to production and the most recently completed finished goods are the "first-out" to customers Prev 1 of 1 Next Integration Activity #5 0 Help Save & Exit Submit Check my work Prepare the quarterly cash budget. (Round final answers to the nearest whole dollar value.) Endless Mountain Company Cash Budget For the Year Ended December 31, 2017 20 points Quarter Year Beginning cash balance Add cash receipts: Print Collection from customers Total cash available Less cash disbursements References 0 Direct materials Direct labor Manufacturing overhead Selling and administrative Dividends Total cash disbursements Excess or (deficiency) of cash available over disbursements Financing: 0 0 Borrowings (at the beginnings of quarters) Repayment (at end of the year) Interest (at 3% per quarter) Total financing Ending cash balance 0 0 Check my work 7. Quarterly selling and administrative expense budget. 8. Quarterly cash budget. 9. Income statement for the year ended December 31, 2017. 10. Balance sheet at December 31, 2017. 20 points Complete this question by entering your answers in the tabs below eBook Print References Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 ERequired 10 Prepare the income statement for the year ended December 31, 2017. (Round final answers to the nearest whole dollar value.) Endless Mountain Company Budgeted Income Statement For the Year Ended December 31, 2017 (Absorption costing basis) 0 Required 8 Required 10> Mc Integration Activity #5 0 Help Save & Exit Submit Check my work Budgeted Balance Sheet December 31, 2017 Assets Current assets 20 points eBook Print References Total current assets Plant and equipment Plant and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities Stockholders' equity: Total stockholders' equity Total liabilities and stockholders' equity 0 Graw Hill Prev 1 of 1 Next>