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 2020, do the following. (a) Prepare a sales budget. This is similar to illustration 22-3 of your textbook. (b) Prepare a production budget. This is similar to illustration 22-5 of your textbook. (c) Prepare a direct materials budget. (Round to nearest dollar) This is similar to Illustration 22-9 of your textbook. (d) Prepare a direct labor budget. (For calculations, round to the nearest hour.) This is similar to illustration 22-11 of your textbook. (e) Prepare a manufacturing overhead budget. (Round intermediate amounts to the nearest dollar.) This is similar to illustration 22-12 of your textbook. (f) Prepare a selling and administrative budget. This is similar to illustration 22-13 of your textbook. (g) Prepare a budgeted income statement. (Round intermediate calculations to the nearest dollar.) This is similar to illustration 22-15 of your textbook. (h) Prepare a cash budget. This is similar to illustration 22-19 of your textbook. (You will need to prepare schedules for expected collections from customers and expected payments to vendors first. See Illustrations 22-17 and 22-18 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. 1* Double-check your work! Verify your formula and logic! Serious Business, Inc. The company is preparing its budget for the coming year, 2020. The first step is to plan for the FIRST QUARTER of that coming year. The following information has been gathered from their managers. Sales Information Period November December January February March April May Unit selling price Units 108,000 Actual 97,000 Actual 106,000 Planned 107,000 Planned 109,000 Planned 119,000 Planned 130,000 Planned 12.00 Grading guidelines are on the instructions tab. $ Finished Goods Inventory Planning The company likes to keep 10% of the next month's unit sales in finished goods ending inventory. Finished Goods Inventory Planning The company likes to keep 10% of the next month's unit sales in finished goods ending inventory. 100% Accounts Receivable & Collections Sales on Account Collections Activity Month of Sale Month after Sale Balance at 12/31/19 75% 25% 185,000.00 $ Materials Inventory Costs & Planning Direct Materials Amount Used per Unit Cost Metal 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 inventory. 100% Accounts Payable & Disbursements Purchases on Account Payment Activity Month of Purchase Month after Purchase Balance at 12/31/19 45% 55% 120,000 $ Direct Labor & Costs Time per Unit Production Pay Rate/Hour 15 minutes 6.00 0.20 0.40 0.45 0.25 Manufacturing Overhead Costs Variable costs per direct labor hour Indirect materials Indirect labor Utilities Maintenance Fixed costs per month Salaries Depreciation Property taxes Insurance Janitorial 42,000 16,800 2,675 1,200 1,300 1.30 Selling and Administrative Costs Variable costs per unit sold Fixed costs per month Advertising Insurance Salaries Depreciation Other fixed costs 15,000 14,000 72,000 25,000 3,000 Income Taxes Accrued on Monthly Net Income Amounts Accrued Q4 2019, paid January 2020 45% rounded to nearest dollar 200,000 $ Cash and Financing Matters Cash Balance, 12/31/2019 2020 Minimum Balance Required $ 82,000 640,000 Monthly Dividends Outstanding Shares 1.90 per share 5,000 Line of Credit Limit None Borrowing Increment Required 1,000 Interest Rate 9% Draws First of Month Repayments Last of Month Interest accumulates to the loan balance and is paid in full with each repayment. Additional Item Fixed Asset Purchase Month $ 400,000 February