Sales projections are as follows: 4th 1st 25,000 24,000 V Unit Sales Cost of materials...
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Sales projections are as follows: 4th 1st 25,000 24,000 V ✓ Unit Sales Cost of materials Labor mix hourly cost 23 ● $.14 $18 23 $.15 $18 2nd 30,000 24 $.15 1 $18.50 3rd 34,000 24 7 1 $18.50 $.16 Variable $3.90 $4.00 $4.00 $4.05 Selling Expense 4th 45,000 25 $.17 $19 1st 27,000 25 $.17 $19 7 Percent of cash sales collected in the period 40% • Percent of credit sales collected in period of sale 40% Percent of credit sales collected after quarter of sale 20% 2nd 29,000 25 • Percentage of purchases paid for in the period of purchase 65% • Percentage of purchase paid for in the subsequent quarter 35% • Direct labor hours required to produce one unit .25 hours • Variable Manufacturing OH rate per direct labor hour is $4.25 Minimum required cash balance $25.000 $.17 $4.10 $4.10 $4.10 $19.5 • Desired ending inventory percentage of next quarters production needs 10% • Amount of materials needed for one unit to be produced is 8 pounds • Desired ending inventory percentage of next quarters materials needs 15% • Quarterly interest rate on loans outstanding charged from the beginning of the quarter 3% V Tax rate 30% Fixed Factory overhead quarterly costs is made up of $14,000 Depreciation expense, $19,000 security expense, $61,000 indirect labor expense. Fixed SG&A quarterly expense is made up of $55,000 advertising expense, $95,000 executive salaries, $10,000 insurance expense, $14,000 Property tax expense, $10,000 depreciation expense. • Beginning balances on the balance sheet are as follows: o Cash 50,000, Accounts Receivable (you figure out), Raw materials (you figure out), finished goods (you figure out), Land $80,000, Buildings and Equipment $700,000, Accumulated depreciation $292,000, Accounts payable (you figure out), Common Stock $200,000, no loans outstanding, Retained earnings (you figure out....hint, back into this) Additional budget information: Capital Cash 1st $80,000 $10,000 2nd $100,000 $10,000, 3rd $60,000 $10,000 4th $20,000 $10,000 V Dividends paid out Using excel, Prepare all budgets necessary in order to prepare proforma financials. Sales projections are as follows: 4th 1st 25,000 24,000 V ✓ Unit Sales Cost of materials Labor mix hourly cost 23 ● $.14 $18 23 $.15 $18 2nd 30,000 24 $.15 1 $18.50 3rd 34,000 24 7 1 $18.50 $.16 Variable $3.90 $4.00 $4.00 $4.05 Selling Expense 4th 45,000 25 $.17 $19 1st 27,000 25 $.17 $19 7 Percent of cash sales collected in the period 40% • Percent of credit sales collected in period of sale 40% Percent of credit sales collected after quarter of sale 20% 2nd 29,000 25 • Percentage of purchases paid for in the period of purchase 65% • Percentage of purchase paid for in the subsequent quarter 35% • Direct labor hours required to produce one unit .25 hours • Variable Manufacturing OH rate per direct labor hour is $4.25 Minimum required cash balance $25.000 $.17 $4.10 $4.10 $4.10 $19.5 • Desired ending inventory percentage of next quarters production needs 10% • Amount of materials needed for one unit to be produced is 8 pounds • Desired ending inventory percentage of next quarters materials needs 15% • Quarterly interest rate on loans outstanding charged from the beginning of the quarter 3% V Tax rate 30% Fixed Factory overhead quarterly costs is made up of $14,000 Depreciation expense, $19,000 security expense, $61,000 indirect labor expense. Fixed SG&A quarterly expense is made up of $55,000 advertising expense, $95,000 executive salaries, $10,000 insurance expense, $14,000 Property tax expense, $10,000 depreciation expense. • Beginning balances on the balance sheet are as follows: o Cash 50,000, Accounts Receivable (you figure out), Raw materials (you figure out), finished goods (you figure out), Land $80,000, Buildings and Equipment $700,000, Accumulated depreciation $292,000, Accounts payable (you figure out), Common Stock $200,000, no loans outstanding, Retained earnings (you figure out....hint, back into this) Additional budget information: Capital Cash 1st $80,000 $10,000 2nd $100,000 $10,000, 3rd $60,000 $10,000 4th $20,000 $10,000 V Dividends paid out Using excel, Prepare all budgets necessary in order to prepare proforma financials.
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To calculate the cash budget we need to break down the sales collections purchases and other expenses month by month Lets start with the sales project... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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