Task: Prepare a budgeted annual balance sheet for BestKayak as of December $31,2024,$ focusing on one specific roto$-$moulded kayak product.

Sales Projections for $2024$: Monthly unit sales projections are provided from January $(436$ units$)$ to December $(108$ units$).$

Pricing and Sales Policy:

Standard selling price: $$552$ per unit.

Discount: $10\%$ in September and December.

Sales Collection: $20\%$ in the month of sale, $50\%$ in the following month, $30\%$ in the second month thereafter.

Previous Year's Sales $(2023)$: Sales for November $(250$ units$)$ and December $(1000$ units$)$ at standard and discounted prices respectively.

Inventory Policy:

Finished goods inventory: $20\%$ of the next month$$s sales.

Production Materials: Each kayak requires $50$ kg of polyethylene powder $($$$1\mathrm{.}3/$kg$)$ and one finishing kit $($$$163$ each$).$

Inventory Policy for Production Materials: Maintain $21\%$ of the next month$$s powder requirement and $50$ finishing kits.

Direct Labor Costs and Manufacturing Overhead:

Labor: $1$ hour by type I employees $($$$15/$hour$),2$ hours by type II employees $($$$9/$hour$).$

Variable overhead costs based on type II employee hours.

Fixed manufacturing overhead: Monthly expenses listed $($e$.$g$.,$ supervisory salaries, depreciation$).$

Selling and Administrative Expenses:

Variable: $4\%$ of sales for commissions and $$10/$unit for freight.

Fixed: Monthly costs detailed $($e$.$g$.,$ advertising, sales salaries$).$

Cash Flow and Payment Policies:

Direct materials: $70\%$ payment in the purchase month, $30\%$ in the next month.

Other costs: Paid in the month incurred.

Additional Assumptions for Master Budget Preparation:

Beginning cash balance: $$95,000.$

Ignore income taxes.

Consistent costs and rates for $2023$ and $2024.$

Property, Plant, and Equipment balance: $$420,000$ as of December $31,2023.$

Equity: $$600,000$ in common share equity with $$120,000$ dividends planned for October $2024.$

Beginning retained earnings formula provided.

Long$-$term liabilities: $$200,000$ with $7\%$ annual interest, $10\%$ repayment planned for December $2024.$

Short$-$term financing: Line of credit details provided.