The company wants to maintain the same number of units in the beginning and ending inventories of work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 750 pieces and decreasing the finished goods by 20%. Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less: Beginning Inventory Total Production 7 Budgeted Income Statement Sales Cost of Goods Sold Gross Profit Selling Expenses & Admin. Expenses Net Income 43000 2400 45400 3000 42,400 units {7.01} $ 2,236,000.00 $ 1,175,688.00 $ 1,060,312.00 $327,030.00 733,282.00 (10.01) 8 Cash Budget Assume actual cash receipts and disbursements will follow the pattern below: (Note: Receivables and Payables of 12/31/x1 will have a cash impact in 20x2.) 19.00% of sales for the year are made in November and December. Since our customers have 60 day terms those funds will be collected be collected in January and February. 86.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February. All other manufacturing and operating costs are paid for when incurred. The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses. Minimum Cash Balance needed for 20x2, $185,000. I See The Light Projected Cash Budget For the Year Ending December 31, 20x2 Beginning Cash Balance Cash Inflows: Sales Collections: Account Receivable (Sales last year not collected) Sales made and collected in 20x2 Cash Available Round dollars to two places, $##.## $ 34,710.000 $ 67,500.00 (10.02} $ 2,236,000.00 (10.03) $ 2,338,210.00 (10.04)