The facts for this problem are presented on the Facts tab of this workbook.
Instructions - Your solutions should be clearly labeled on the Solutions tab of this workbook.
For the first quarter of 2017, do the following.
(a) Prepare a sales budget. This is similar to Illustration 21-3 on page 1088 of your textbook.
(b) Prepare a production budget. This is similar to Illustration 21-5 on page 1089 of your textbook.
(c) Prepare a direct materials budget. (Round to nearest dollar) This is similar to Illustration 21-7 on page 1091 of your textbook.
(d) Prepare a direct labor budget. (For calculations, round to the nearest hour.) This is similar to Illustration 21-9 on page 1094 of your textbook.
(e) Prepare a manufacturing overhead budget. (Round intermediate amounts to the nearest dollar.) This is similar to Illustration 21-10 on page 1094 of your textbook.
(f) Prepare a selling and administrative budget. This is similar to Illustration 21-11 on page 1095 of your textbook.
(g) Prepare a budgeted income statement. (Round intermediate calculations to the nearest dollar.) This is similar to Illustration 21-13 on page 1096 of your textbook.
(h) Prepare a cash budget. This is similar to Illustration 21-17 on page 1100 of your textbook.
(You will need to prepare schedules for expected collections from customers and expected payments to vendors first. See Illustrations 21-15 and 21-16 on page 1099 of your textbook for guidance.)
Rules:
* Use Excel's functionality to your benefit. Points are lost for lack of formula.
* Use proper formats for schedules, following the referenced textbook examples.
* Use dollar-signs and underscores where appropriate.
* Double-check your work! Verify your formula and logic!
Grading Guidelines:
Effective Use of Excel	40%
Facts, Logic	20%
Completeness	30%
Spelling, Punctuation, Value Format	10%

OPEN IMAGE IN A NEW TAB TO ZOOM IN AND VIEW / PLEASE SHOW FORMULAS

Serious Business, Inc. The company is preparing its budget for the coming year, 2017. The first step is to plan for the first quarter of that Sales Information Periad 125,000 Actual 112,000 Actual 123,000 Planned 124,000 Planned 128,000 Planned 138,000 Planned 151,000 Planned February March 13.00 Grading guidelines are on the instructions tab. Unit selling price Finished Goods Inventory Planning The company likes to keep 10% of the next month's unit sales in finished goods ending inventory. Accounts Receivable & Collections Sales on Account 100% Collections Activity 95% Month of Sale Month after Sale Balance at 12/31/16 185,000.00 Materials Inventory Costs & Planning Direct Materials Amount Used per Unit Cost 2 lb $1.00 lb The company likes to keep 5% of the material needed for the next month's production in raw materials ending Accounts Payable& Disbursements Purchases on Account 100% Payment Activity Month of Purchase Month after Purchase Balance at 12/31/16 45% Direct Labor & Costs Time per Unit Production Pay Rate/Hour 15 minutes 9.00 Manufacturing Overhead Costs Variable costs per direct labor hour Indirect materials Indirect labor 0.35 0.55 0.45 0.25 Fixed costs per month 42,000 16,800 2,675 Property taxes Selling and Administrative Costs Variable costs per unit sold Fixed costs per month Advertisinge 1.75 15,000 14,000 72,000 25,000 Other fixed costs Income Taxes Accrued on Monthly Net Income 45% rounded to nearest dollar Amounts Accrued Q4 2016 paid J Cash and Financing Matters Cash Balance, 12/31/2016 2017 Minimum Balance Requiree 110,550 Monthly Dividends 2.80 per share Outstanding Shares Line of Credit Borrowing Increment Required$ Interest Rate Draws First of Month Last of Month Interest accumulates to the loan balance and is paid in full with each repayment. Additional Item Fixed Asset Purchase Month 550,000