1. Show the development of work in process inventory in the budget
2. Show the development of the cost of finished goods inventory in the budget
3. What is a major driver of cash and, thus, should be an important execution goal coming out of the budget

Income Statement Budget 2,700,000 Sales Per unit Costs Material Labour Overhead COGS 2.00 3.00 1.25 6.25 600,000 900,000 375,000 1,875,000 Gross Margin 825,000 Selling and Admin Costs 750,000 Operating Profit 75,000 Cash Material Work in Process Finished Goods Fixed Assets Balance Sheet Budget 50,000 60,000 102,500 187,500 100,000 500,000 Last year 45,000 40,000 40,000 125,000 100,000 350,000 Debt Common Stock Retained Earnings 250,000 100,000 150,000 500,000 175,000 100,000 75,000 350,000