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%

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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 Period Units November 125,000 Actual Decembe 112,000 Actual January 123,000 Planned ebruary 124,000 Planned 128,000 Planned March 138,000 Planned May 151,000 Planned Unit ling price 13.00 Grading gui instructions tal inished 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 Month of Sale 95% Month aft 5% Balance at 12/31/16 85,000.00 Materials Inventory Costs & Planning Direct Materials nt Used per Uni 2 lb Meta The company likes to keep S% of the material needed for the next month's production in raw materials ending Accounts Payable & Disbursements Purchases on Account Payment Activity Month of Purchase Month after Purchase 45% 120,000 Balance at 12/31/16 Direct Labor & Production Pay Rate/H Manufacturing overhead costs Variable costs per direct labor hour ndirect material ndirect labor Util 0.45 Maint 0.25 Fixed costs per month Salaries 42,000 Depreciation 16,800 Property taxes 2,675 Insurance 1,200 Janitorial 1.300 Selling and Administrative Costs Variable costs per it sold Fixed costs per month Advertising 15,000 14.000 Salaries 72,000 Depreciation 25,000 other fixed costs 3,000 Income Taxes Accrued on Monthly Net Incom 45% rounded to nearest dollar Amounts Accrued Q4 2016 paid Ja 200,000 Cash and Financing Matters Cash Balance, 12/31/2016 110,550 2017 Minimum Balance Require 880,000 Monthly Dividends outstanding Shares ine of Credit Borrowing Increment Required Interest Rate 9% Draws First of M Repayments ast of Month Interest accumulates to the loan balance and is paid in full with each repayment. Additional item Fixed Asset Purchase 550,000 Month February