Schedule 3 - Production Budget Budgeted Year Q3 Following Year Q1 Q2 Q1 02 Q4 Year 1,800 2,016 2,258 2,529 8,603 Standard table Unit Sales Plus: Desired ending inventory (round up) Total needed Less: Beginning inventory Units to produce 310 310 310 310 1,240 Deluxe table Unit sales Plus: Desired ending inventory (round up) Total needed Less: Beginning inventory Units to produce 2,089 Sales Information: 2021 What if factors Standard Table: Q3 Q4 Sales price Sale quantity $190 1,800 190 1,800 5% 12K Adjusted Sales Information Budgeted Year (2022) Q2 Q3 199.50 199.50 2,016 2,258 Qi 199.50 1,800 Sales price Sales quantity Q4 199.50 2,529 What If factors Deluxe Table Sales price Sale quantity 0% 20% Adjusted Sales Information Budgeted Year 02 Q3 310.00 310.00 408 490 91 310.00 340 Sales price Sales quantity 04 310.00 588 Collection Information: % of sales paid with cash % of sales on credit 40% 50% Percentage of credit sales collected in: Current month Following month Second following month Uncollectible Portion (Bad Debt expense) 35% 50% 12% 3% Direct Material Direct Labour MOH Payment Information: Percentage of direct materials purchases paid in: Current month Following month BOX 20% All direct labour and MOH are paid in the month occurred. Quick Financial Information Operating Income Ending line of credit balance Cash flow from operations 90,728 237,231 302,904 Beginning Balance Sheet: Table Company Budgeted Balance Sheet 31-Dec-21 6,000 24,624 102,600 24,624 151,848 Current assets: Cash Accounts receivable (net of bad debts): Q3 amount to collect 1 Q4 amount to collect 1 Q4 amount to collect Q2 Inventory Finished goods inventory Standard table Deluxe table Raw materials inventory Standard table: Wood Metal Deluxe table Total current assets note: there is no WIP inventory Property, plant, and equipment: 111,860 O 25,000 14,000 39,000 0 308,708 625,000 (40,000) Fixed Assets Less Accumulated depreciation Total property, plant, and equipment Total assets $ 585.000 893 208 Current Liabilities Interest payable on line of credit Une of credit Accounts payable Dividends payable (OTR 1) Income tax payable Total liabilities 1,000 50,000 60,000 12,000 16,000 139,000 Shareholders' equity Common shares Retained earnings Total shareholders' equity Total abilities and shareholders equity 700.000 54 700 254,700 191.700 $ Desired Finished Goods Ending Inventory Information: The company desires to have on hand at the end of each month: 30% Finished goods inventory: equal to the % of the following month's sales Direct materials inventory: equal to the % of the following month's production needs. 20% Units 650 DollarValue $ 111,860 0 0 Dec 31, 2021 ending inventories: standard tables (finished goods) deluxe tables (finished goods) Regular Wood (square feet) Regular Metal components 5,000 2,000 25,000 14,000 Premium Wood Premium metal components 0 0 Direct Material & Direct Labour Production Information Direct materials used to manufacture each product: Standard table Square foot of wood required per unit Cost per square foot of wood 10.00 5.00 Metal components required per unit Cost per metal component 4.00 7.00 Deluxe Table Square foot of premium wood required per unit Cost per square foot of wood 12.00 6.50 Premium Metal components required per unit Cost per metal components 4.00 8.00 Direct labour used to manufacture each product same for both products) Number of hours per unit Average hourly rate (including benefits) 3.0 $20.00 Manufacturin Overhead Information: Variable MOH: Indirect materials per direct labour hour) Indirect labour (per direct labour hour) $ $ 4.00 5.00 Variable overhead is located on the basis of direct labour hours Fixed MOH is estimated to be Depreciation per quarter Increase in depreciation after asset purchase Management sy per quarter 2.000 2.000 15 000 Selling & Administration Expenses: Variable Costs: Sales commissions (% of sales) Shipping and handling (per unit) 3% 5.00 8 Fixed Costs: Advertising Office salaries Property taxes and insurance Other expenses What if 5,000 25,000 10,000 4,000 Investment and other Information: Line of Credit Information Maximum line of credit Annual Interest Rate on LOC Quarterly Interest Rate 100,000 8% 2% Purchase of Machinery Quarter 1 30,000 Annual Dividend Declared QTR 4 Paid in QTR 1 12,000 Minimum cash balance 6,000 Tax Information: Income Tax Rate (marginal) 18% Prior year taxes payable Paid in QTR 2 16.000 Schedule 3 - Production Budget Budgeted Year Q3 Following Year Q1 Q2 Q1 02 Q4 Year 1,800 2,016 2,258 2,529 8,603 Standard table Unit Sales Plus: Desired ending inventory (round up) Total needed Less: Beginning inventory Units to produce 310 310 310 310 1,240 Deluxe table Unit sales Plus: Desired ending inventory (round up) Total needed Less: Beginning inventory Units to produce 2,089 Sales Information: 2021 What if factors Standard Table: Q3 Q4 Sales price Sale quantity $190 1,800 190 1,800 5% 12K Adjusted Sales Information Budgeted Year (2022) Q2 Q3 199.50 199.50 2,016 2,258 Qi 199.50 1,800 Sales price Sales quantity Q4 199.50 2,529 What If factors Deluxe Table Sales price Sale quantity 0% 20% Adjusted Sales Information Budgeted Year 02 Q3 310.00 310.00 408 490 91 310.00 340 Sales price Sales quantity 04 310.00 588 Collection Information: % of sales paid with cash % of sales on credit 40% 50% Percentage of credit sales collected in: Current month Following month Second following month Uncollectible Portion (Bad Debt expense) 35% 50% 12% 3% Direct Material Direct Labour MOH Payment Information: Percentage of direct materials purchases paid in: Current month Following month BOX 20% All direct labour and MOH are paid in the month occurred. Quick Financial Information Operating Income Ending line of credit balance Cash flow from operations 90,728 237,231 302,904 Beginning Balance Sheet: Table Company Budgeted Balance Sheet 31-Dec-21 6,000 24,624 102,600 24,624 151,848 Current assets: Cash Accounts receivable (net of bad debts): Q3 amount to collect 1 Q4 amount to collect 1 Q4 amount to collect Q2 Inventory Finished goods inventory Standard table Deluxe table Raw materials inventory Standard table: Wood Metal Deluxe table Total current assets note: there is no WIP inventory Property, plant, and equipment: 111,860 O 25,000 14,000 39,000 0 308,708 625,000 (40,000) Fixed Assets Less Accumulated depreciation Total property, plant, and equipment Total assets $ 585.000 893 208 Current Liabilities Interest payable on line of credit Une of credit Accounts payable Dividends payable (OTR 1) Income tax payable Total liabilities 1,000 50,000 60,000 12,000 16,000 139,000 Shareholders' equity Common shares Retained earnings Total shareholders' equity Total abilities and shareholders equity 700.000 54 700 254,700 191.700 $ Desired Finished Goods Ending Inventory Information: The company desires to have on hand at the end of each month: 30% Finished goods inventory: equal to the % of the following month's sales Direct materials inventory: equal to the % of the following month's production needs. 20% Units 650 DollarValue $ 111,860 0 0 Dec 31, 2021 ending inventories: standard tables (finished goods) deluxe tables (finished goods) Regular Wood (square feet) Regular Metal components 5,000 2,000 25,000 14,000 Premium Wood Premium metal components 0 0 Direct Material & Direct Labour Production Information Direct materials used to manufacture each product: Standard table Square foot of wood required per unit Cost per square foot of wood 10.00 5.00 Metal components required per unit Cost per metal component 4.00 7.00 Deluxe Table Square foot of premium wood required per unit Cost per square foot of wood 12.00 6.50 Premium Metal components required per unit Cost per metal components 4.00 8.00 Direct labour used to manufacture each product same for both products) Number of hours per unit Average hourly rate (including benefits) 3.0 $20.00 Manufacturin Overhead Information: Variable MOH: Indirect materials per direct labour hour) Indirect labour (per direct labour hour) $ $ 4.00 5.00 Variable overhead is located on the basis of direct labour hours Fixed MOH is estimated to be Depreciation per quarter Increase in depreciation after asset purchase Management sy per quarter 2.000 2.000 15 000 Selling & Administration Expenses: Variable Costs: Sales commissions (% of sales) Shipping and handling (per unit) 3% 5.00 8 Fixed Costs: Advertising Office salaries Property taxes and insurance Other expenses What if 5,000 25,000 10,000 4,000 Investment and other Information: Line of Credit Information Maximum line of credit Annual Interest Rate on LOC Quarterly Interest Rate 100,000 8% 2% Purchase of Machinery Quarter 1 30,000 Annual Dividend Declared QTR 4 Paid in QTR 1 12,000 Minimum cash balance 6,000 Tax Information: Income Tax Rate (marginal) 18% Prior year taxes payable Paid in QTR 2 16.000