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Posted on Jul 11, 2024

The first picture posted is the actual section I need help with (section 10 cash budget). I included supporting information that may be needed! Thank

The first picture posted is the actual section I need help with (section 10 cash budget). I included supporting information that may be needed! Thank you! image text in transcribed

7 Budgeted Income Statement Sales Cost of Goods Sold Gross Profit Seling Expenses & Admin Expenses Net Income $ $ $ 1.776,000.00 1950,332 00) 825.668.00 $270.650.00 555.008.00 10.01) $ 8 Cash Budget Assume actual cash receipts and disbursements will follow the pattern below (Note: Receivables and Payables of 12/31/xt will have a cash impact in 2012.) 1. 16.00% 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 2. 81.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February 3. All other manufacturing and operating costs are paid for when incurred. The budgeted depreciation expense is equal to 0.5% of the fixed manufacturing, seling and administrative expenses. 5. Minimum Cash Balance needed for 2012, $180,000 I See The Light Projected Cash Budget For the Year Ending December 31, 20x2 Round dollars to two places SAW $ 34 710 000 $ 67,500.00 (1002) (10.03) (10.04) $ 54 000 000 (10:05) Beginning Cash Balance Cash Inflows Sales Collections Account Receivable (Sales last year not collected) Sales made and collected in 2012 Cash Available Cash Outfows Purchases Accounts Payable (Purchases last year) Purchases made and paid for in 2012 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Selling and Administrative Less Depreciation Total Cash Outflows Budgeted Cash Balance before financing Needed Minimum Balance Amount to be borrowed (if any) Budgeted Cash Balance 76 076 000 $ 2.094.00 (10.06) (10.07) (10.08) (10.09) (1010) I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1.125,000.00 750,000.00 $375,000.00 Sales 25,000 lamps @ $45.00 Cost of Goods Sold $30.00 Gross Profit Selling Expenses Fixed Variable (Commission per unit) $3.00 Administrative Expenses Fixed Variable $2.00 Total Selling and Administrative Expenses Net Profit $ 23,000.00 75,000.00 $ 98,000.00 $ 42,000.00 50,000.00 92.000.00 190,000.00 $ 185,000.00 See The Light Projected Balance Sheet As of December 31, 20x1 5 34 710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 8.000.00 500 @ $16.00 0 3000 @ $30.00 90.000.00 $ 200, 21000 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets $ 20,000.00 8 800.00 13200.00 213.410 00 54 000 00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12 000 00 147.410.00 159 41000 213 410 00 1 See The Light, Inc Schedule of Projected Costs Variabit Manufacturing unit.com 20x1 Cost Projected Percent Increase 16 Lamp Labo Variable Overead 2012 Cost Rounded to 2 Decimal Places $16.40 5200 $210 (401) (402) (403) 2 Projected Variable Manufactung Cost Per Unt $20.59 404 Ya Matung Un.COM 20 Cost Projected Percent Increase Lamp Labor Variable Overhead 16 21 21 2012 Cost Rounded to 2 Decimal Places 51640 $200 $210 (401) (402) (482 Projected Varate Manufacturing Cost Per Une 5200 1454 Totalcidit. Content 2011 Cost Proced Percent Increase 2012 Cost Rounded to 2 Decimal Places 3.00 Variable Seling Vanable Administrative Projected Variable Manufacturing unit Cost (405 1806) 1600 2050 Projected Total Variable Cost Pet Unt 2570 (407) 20x1 Cost 2012 Cost Projecte Percent Increase $ 270.00000 Food Overhead normal capacity of ms S 23 000 00 5600000 red Administrative (409 (410 $ Projected Total Fored Costs 349.00000 (411) Cost Volume Relationships Profit Planning BN6s about to be work on the hope and they had that you prepare an ass che Pumenter, that we were to parte a uno, terature to to the number of units you het to round to the content Future of the readers may be inte number of the myty winger For 2012 the price per il 545.00 What is the proces contribution marginand contion mech 51923 18011 Contribution Margin perunt Hound the Contribution Magneto Pound to four places of the For 2010 the selling price per lorowite 545.00 The ide income 262 5187.500 What would des units have to be le 2012 och the profit goal? 22.000 For 2012 the song price per il be 545.00 the feed cost increase by 55500000 how many lamps must be sold to breakeven? Breakeven sales in units Since we cannot sel part a une round up to the rest une neden 19.968 units Fec 2012 the selling price per lamp will be 545.00. If the variable cost increase by $3.50 eunt how many lamps must be sold to breakeven? Breakeven sales in unts (Since we cannot sell part of a unit round up to the rest untrended 22 187 units 16.01 For 2012 the selling price per lamp will be 545,00 It the variable cost decreased by $3.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units Since we cannot sell part of a round up to the rest until needed 15 355 unit 16.00 for 2012 the selling price per lamp is increased to $48.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot part of an und up to the next feeded 15.356 units 16.00 If for 20x2 the selling price per lamp is decreased to $41.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units Garot needed 22.187 units 18.04 Dision N has red to develop its budget based upon projected sales of 37 000 lames at 548.00 perlamp The company has requested that you prepare a master budget for the year. This budget is to be used for planning and control of operations and should be composed of 1. Production Budget 2 Materials Budget 3. Direct Labor Budget 4 Fadory Overhead Budget 5 Seling and Administrative Budget Cost of Goods Sold Budget 7. Budgeted Income Statement * Cash Budget Notes for Budgeting 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 525 pieces and Decreasing the finished goods by 20% complete me following budgets 1 Production Budo Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less Beginning Inventory Total Production 37000 2000 3000 36400 0.011 36.400 urt 525 units 1801) 18.00 18.05 1004 2 Material Butant Lamp Kits Needed for Production Desired Ending inventory Total Needed Less Beginning inventory To Purchases Cost per piece Con of Purchases (Round low places Sw) 3 cabo Labor Cost Per Lamp Production Total Labor Cost Round to two places. S.) 500 $6426 10:49 197.87000 1806 18.00 5 5 200 18071 18.08 4 1 Variable Factory Overhead Variable Factory Overhead Cost Per Unt Number of Units to be produced Total Variable Factory Overhead (Round to two places, Sou) Fred Factory Overhead Total Factory Overhead (Round to two placesSuda) S $ 21000000 34905 78 44000 270000 09 18.00 10.101 346.440.00 4 Eaciend Budget Overhead Alocation rate based on 1 Number of Units Total Factory Overhead Number of in (Round to two places. S) (1:01 $9.52 (9.01) 4 Factory Overhead Budget Overhead Allocation rate based on 1. Number of Units Total Factory Overhead / Number of Units (Round to two places. S*) s cost of making me texty Cost of one Lamp KE Labor Cost Per Lamp Factory overhead per unit Total cost of one unit (Round to two places. Stw NW) 16 41 $200 (902) 9.82 28 01 (903) Selling and Admin Budget Fixed Seling Variable Selling (Round to two places, S38) Fixed Administrative Variable Administrative (Round to two places, Sww.ww) Total Seiling and Administrative (Round to two places. S.) 23000 $114 33000 (9.04 56000 77330.00 (9.05) 270.680.00 9.000 Round dollars toto places www 90.000,00 (907) WALL Goods. Sold Budget Beginning inventory. Finished Goods Production Costs Materials Lamp Kits Beginning inventory Purchased Available for Use Ending inventory of Lamp Kits Lamp Kits Used in Production Total Materials Labor Overhead Cost of Goods Avalable Less Ending Inventory. Finished Goods Cost of Goods Sold 80001 5 6053701 $ 522170.00 8.610 00 (808) $ $ $ $ S $ 596 760.00 76.076.00 346 440 00 1,019 27600 67 224 00 95205200 (909) (910) (911) (9.12) (913) 1914 7 Budgeted Income Statement Sales Cost of Goods Sold Gross Profit Seling Expenses & Admin. Expenses Net Income $ $ $ 1.775,000.00 1950, 332.00 825.668.00 $270.660.00 5 555,008.00 110.01 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 2012.) 1- 16.00% of sales for the year are made in November and December. Since our customers have 50 day terms those funds will be collected be collected in January and February 2 81.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February 3. 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. 5. Minimum Cash Balance needed for 2012, S180.000 I See The Light Projected Cash Budget For the Year Ending December 31, 20x2 Round dollars to two pikes S $ 34 710 000 $ 67 500.00 (1002) (1003) (1004) $ 54 000 000 (1005) Beginning Cash Balance Cash inflows Sales Collections Account Receivable (Sales last year not collected) Sales made and collected in 2012 Cash Available Cash Outflows Purchases Accounts Payable (Purchases last year Purchases made and paid for in 2012 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Seling and Administrative Less Depreciation Total Cash Outflows Budgeted Cash Balance before financing Needed Minimum Balance Amount to be borrowed (if any) Budgeted Cash Balance 5 76 076 000 $ 209400 (1005) (1007) (10.08) (1009) (1010) 7 Budgeted Income Statement Sales Cost of Goods Sold Gross Profit Seling Expenses & Admin Expenses Net Income $ $ $ 1.776,000.00 1950,332 00) 825.668.00 $270.650.00 555.008.00 10.01) $ 8 Cash Budget Assume actual cash receipts and disbursements will follow the pattern below (Note: Receivables and Payables of 12/31/xt will have a cash impact in 2012.) 1. 16.00% 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 2. 81.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February 3. All other manufacturing and operating costs are paid for when incurred. The budgeted depreciation expense is equal to 0.5% of the fixed manufacturing, seling and administrative expenses. 5. Minimum Cash Balance needed for 2012, $180,000 I See The Light Projected Cash Budget For the Year Ending December 31, 20x2 Round dollars to two places SAW $ 34 710 000 $ 67,500.00 (1002) (10.03) (10.04) $ 54 000 000 (10:05) Beginning Cash Balance Cash Inflows Sales Collections Account Receivable (Sales last year not collected) Sales made and collected in 2012 Cash Available Cash Outfows Purchases Accounts Payable (Purchases last year) Purchases made and paid for in 2012 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Selling and Administrative Less Depreciation Total Cash Outflows Budgeted Cash Balance before financing Needed Minimum Balance Amount to be borrowed (if any) Budgeted Cash Balance 76 076 000 $ 2.094.00 (10.06) (10.07) (10.08) (10.09) (1010) I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1.125,000.00 750,000.00 $375,000.00 Sales 25,000 lamps @ $45.00 Cost of Goods Sold $30.00 Gross Profit Selling Expenses Fixed Variable (Commission per unit) $3.00 Administrative Expenses Fixed Variable $2.00 Total Selling and Administrative Expenses Net Profit $ 23,000.00 75,000.00 $ 98,000.00 $ 42,000.00 50,000.00 92.000.00 190,000.00 $ 185,000.00 See The Light Projected Balance Sheet As of December 31, 20x1 5 34 710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 8.000.00 500 @ $16.00 0 3000 @ $30.00 90.000.00 $ 200, 21000 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets $ 20,000.00 8 800.00 13200.00 213.410 00 54 000 00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12 000 00 147.410.00 159 41000 213 410 00 1 See The Light, Inc Schedule of Projected Costs Variabit Manufacturing unit.com 20x1 Cost Projected Percent Increase 16 Lamp Labo Variable Overead 2012 Cost Rounded to 2 Decimal Places $16.40 5200 $210 (401) (402) (403) 2 Projected Variable Manufactung Cost Per Unt $20.59 404 Ya Matung Un.COM 20 Cost Projected Percent Increase Lamp Labor Variable Overhead 16 21 21 2012 Cost Rounded to 2 Decimal Places 51640 $200 $210 (401) (402) (482 Projected Varate Manufacturing Cost Per Une 5200 1454 Totalcidit. Content 2011 Cost Proced Percent Increase 2012 Cost Rounded to 2 Decimal Places 3.00 Variable Seling Vanable Administrative Projected Variable Manufacturing unit Cost (405 1806) 1600 2050 Projected Total Variable Cost Pet Unt 2570 (407) 20x1 Cost 2012 Cost Projecte Percent Increase $ 270.00000 Food Overhead normal capacity of ms S 23 000 00 5600000 red Administrative (409 (410 $ Projected Total Fored Costs 349.00000 (411) Cost Volume Relationships Profit Planning BN6s about to be work on the hope and they had that you prepare an ass che Pumenter, that we were to parte a uno, terature to to the number of units you het to round to the content Future of the readers may be inte number of the myty winger For 2012 the price per il 545.00 What is the proces contribution marginand contion mech 51923 18011 Contribution Margin perunt Hound the Contribution Magneto Pound to four places of the For 2010 the selling price per lorowite 545.00 The ide income 262 5187.500 What would des units have to be le 2012 och the profit goal? 22.000 For 2012 the song price per il be 545.00 the feed cost increase by 55500000 how many lamps must be sold to breakeven? Breakeven sales in units Since we cannot sel part a une round up to the rest une neden 19.968 units Fec 2012 the selling price per lamp will be 545.00. If the variable cost increase by $3.50 eunt how many lamps must be sold to breakeven? Breakeven sales in unts (Since we cannot sell part of a unit round up to the rest untrended 22 187 units 16.01 For 2012 the selling price per lamp will be 545,00 It the variable cost decreased by $3.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units Since we cannot sell part of a round up to the rest until needed 15 355 unit 16.00 for 2012 the selling price per lamp is increased to $48.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot part of an und up to the next feeded 15.356 units 16.00 If for 20x2 the selling price per lamp is decreased to $41.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units Garot needed 22.187 units 18.04 Dision N has red to develop its budget based upon projected sales of 37 000 lames at 548.00 perlamp The company has requested that you prepare a master budget for the year. This budget is to be used for planning and control of operations and should be composed of 1. Production Budget 2 Materials Budget 3. Direct Labor Budget 4 Fadory Overhead Budget 5 Seling and Administrative Budget Cost of Goods Sold Budget 7. Budgeted Income Statement * Cash Budget Notes for Budgeting 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 525 pieces and Decreasing the finished goods by 20% complete me following budgets 1 Production Budo Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less Beginning Inventory Total Production 37000 2000 3000 36400 0.011 36.400 urt 525 units 1801) 18.00 18.05 1004 2 Material Butant Lamp Kits Needed for Production Desired Ending inventory Total Needed Less Beginning inventory To Purchases Cost per piece Con of Purchases (Round low places Sw) 3 cabo Labor Cost Per Lamp Production Total Labor Cost Round to two places. S.) 500 $6426 10:49 197.87000 1806 18.00 5 5 200 18071 18.08 4 1 Variable Factory Overhead Variable Factory Overhead Cost Per Unt Number of Units to be produced Total Variable Factory Overhead (Round to two places, Sou) Fred Factory Overhead Total Factory Overhead (Round to two placesSuda) S $ 21000000 34905 78 44000 270000 09 18.00 10.101 346.440.00 4 Eaciend Budget Overhead Alocation rate based on 1 Number of Units Total Factory Overhead Number of in (Round to two places. S) (1:01 $9.52 (9.01) 4 Factory Overhead Budget Overhead Allocation rate based on 1. Number of Units Total Factory Overhead / Number of Units (Round to two places. S*) s cost of making me texty Cost of one Lamp KE Labor Cost Per Lamp Factory overhead per unit Total cost of one unit (Round to two places. Stw NW) 16 41 $200 (902) 9.82 28 01 (903) Selling and Admin Budget Fixed Seling Variable Selling (Round to two places, S38) Fixed Administrative Variable Administrative (Round to two places, Sww.ww) Total Seiling and Administrative (Round to two places. S.) 23000 $114 33000 (9.04 56000 77330.00 (9.05) 270.680.00 9.000 Round dollars toto places www 90.000,00 (907) WALL Goods. Sold Budget Beginning inventory. Finished Goods Production Costs Materials Lamp Kits Beginning inventory Purchased Available for Use Ending inventory of Lamp Kits Lamp Kits Used in Production Total Materials Labor Overhead Cost of Goods Avalable Less Ending Inventory. Finished Goods Cost of Goods Sold 80001 5 6053701 $ 522170.00 8.610 00 (808) $ $ $ $ S $ 596 760.00 76.076.00 346 440 00 1,019 27600 67 224 00 95205200 (909) (910) (911) (9.12) (913) 1914 7 Budgeted Income Statement Sales Cost of Goods Sold Gross Profit Seling Expenses & Admin. Expenses Net Income $ $ $ 1.775,000.00 1950, 332.00 825.668.00 $270.660.00 5 555,008.00 110.01 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 2012.) 1- 16.00% of sales for the year are made in November and December. Since our customers have 50 day terms those funds will be collected be collected in January and February 2 81.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February 3. 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. 5. Minimum Cash Balance needed for 2012, S180.000 I See The Light Projected Cash Budget For the Year Ending December 31, 20x2 Round dollars to two pikes S $ 34 710 000 $ 67 500.00 (1002) (1003) (1004) $ 54 000 000 (1005) Beginning Cash Balance Cash inflows Sales Collections Account Receivable (Sales last year not collected) Sales made and collected in 2012 Cash Available Cash Outflows Purchases Accounts Payable (Purchases last year Purchases made and paid for in 2012 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Seling and Administrative Less Depreciation Total Cash Outflows Budgeted Cash Balance before financing Needed Minimum Balance Amount to be borrowed (if any) Budgeted Cash Balance 5 76 076 000 $ 209400 (1005) (1007) (10.08) (1009) (1010)