Streaker Company creates top-line heated jackets. They are preparing the budget for the year ended 12/31/2020. Sales projections are as follows:

• Percent of cash sales collected in the period 50%
• Percent of credit sales collected in period of sale 40%
• Percent of credit sales collected after quarter of sale 10%
• Desired ending inventory percentage of next quarters production needs 15%
• Amount of materials needed for one unit to be produced is 3 pounds
• Cost of raw materials per pound $8.25 for all of 2020
• Desired ending inventory percentage of next quarters materials needs 20%
• Percentage of purchases paid for in the period of purchase 60%
• Percentage of purchase paid for in the subsequent quarter 40%
• Direct labor hours required to produce one unit .5 hours
• Cost per direct labor hour $19.00
• Minimum required cash balance $25,000.
• Money can be borrowed for the exact amount needed in order to maintain the required balance.
• Quarterly interest rate on loans outstanding is charged from the beginning of the quarter 4% and can be repaid when funds are available. Assume the money is paid at the beginning of the quarter in which a loan is paid. Interest expense is charged quarterly for loans outstanding.
• Cost per unit of the prior year finished goods inventory $53.25
• Cost per unit of the prior years raw material inventory 7.80
• Tax rate 30%
• Quarterly Fixed Factory overhead is made up of $55,000 Depreciation expense, $19,000 security expense, $460,000 indirect labor expense, $52,000 maintenance expense, $30,000 housekeeping expense, $70,000 supervisor expense
• Quarterly Fixed SG&A expense is made up of $45,000 advertising expense, $345,000 executive salaries, $25,000 insurance expense, $40,000 Property tax expense, $60,000 depreciation expense, housekeeping and maintenance expense $50,000, security expense $25,000.
• Beginning balances on the balance sheet are as follows:
  • Cash $40,000, Accounts Receivable (you compute), Raw materials (you compute), finished goods (you compute), Land $125,000, Buildings and Equipment $950,000, Accumulated depreciation $250,000, Accounts payable (you compute), Common Stock $325,000, Retained earnings (you compute).

Required: Prepare the following budgets for Streaker Company: Sales, Production Budget, Materials Budget, Budgeted Cash Disbursement schedule for Material purchases, Direct Labor Budget, Manufacturing Overhead Budget, Cost of Goods Sold Budget, SG&A Budget, Cash Receipts Budget, Cash Disbursements Budget, Cash Budget, and Financial Statements: Income, Retained Earnings, and Balance Sheets.

4th 1st 2nd 3rd 4th 1st 2nd 2021 2019 2020 2020 2020 2020 2021 42,500 69,000 82,000 75,000 30,000 $66 $74 $74 $72 $71 $13.50 $13.50 $13.50 $13.75 $13.75 Unit 73,000 28,000 Sales Unit $71 $71 sales price Cost for $13.25 $13.25 VFO per DL hour Cost of $2.00 $2.10 Variable SG&A per unit sold $2.20 $2.20 $2.50 $2.60 $2.60 2nd 3rd 4th $100,000 $165,000 Additional budget information: 1st Capital $309,000 $75,000 purchases Cash $30,000 $30,000 Dividends paid out $30,000 $30,000