Sales: Sales in Units (Masks) Selling Price per Mask JULY 222,000 7.75 AUGUST 290,000 SEPTEMBER 216,000 OCTOBER 165,000 NOVEMBER 197,000 $ Collections: Cash Collected in the Month of Sale Cash Collected in Following Month 70% 30% Finished Goods Inventory: Ending FG Inventory Requirement Beginning FG Inventory, July 1, 2020 20% of next month's unit sales 44,400 masks Raw Materials Inventory: Raw Materials Required per Mask Raw Materials Cost per Yard Ending RM Inventory Requirement Paid in Month of Purchase Paid in Following Month Beginning RM Inventory, July 1, 2020 0.2 yards of fabric $14.00 per yard 30% of next month's production needs 60% 40% 14,136 yards of fabric Direct Labor: Labor Required per Mask Labor Cost per Hour 0.05 hours 18.00 per hour Manfacturing Overhead: Variable OH Fixed OH Noncash Fixed OH (included in above) 0.75 per mask 114,000 per month 22,000 per month $ Selling & Administrative Expenses: Variable S&A Fixed S&A Noncash Fixed S&A (included in above) $ $ 1.35 per unit sold 65,000 per month 9,000 per month Other: Equipment Purchase 68,000 purchased on July 1, 2020 *depreciation is already included in noncash fixed OH above Cash Borrowings: Interest Payment Repayment 5,250 per month until repayment occurs 700,000 at the end of August $ ASSETS Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory PP&E, net Winnie's Wearable Masks Balance Sheet As of June 30, 2020 LIABILITIES & EQUITIES $572,000 Accounts Payable $375,000 Loan Payable $197,904 Interest Payable $197,580 TOTAL LIABILITIES $870,000 Retained Earnings TOTAL EQUITIES $2,212,484 TOTAL LIABILITIES & EQUITIES $197,400 $700,000 $0 $897,400 $1,315,084 $1,315,084 $2,212,484 TOTAL ASSETS Winnie's Wearable Masks Budgeted Income Statement For the Quarter Ending September 30, 2020 Sales Variable Expenses: Variable Manufacturing Expense Variable S&A Expense Contribution Margin Fixed Expenses: Fixed Manufacturing Expense Fixed S&A Expense Net Operating Income Interest Expense Net Income