The Gilder Tire Company manufactures racing tires for bicycles. Gilder sells tires for $65 each. Gilder is planning for the next year by developing a master budget by quarters. Gilder's balance sheet for December 31, 2018, follows: (Click the icon to view the balance sheet.) Other data for Gilder Tire Company: Click the icon to view the other data.) Read the requirements. Requirement 1. Prepare Gilder's operating budget and cash budget for 2019 by quarter. Required schedules and budgets include: sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budget. Manufacturing overhead costs are allocated based on direct labo hours. Round all calculations to the nearest dollar. Begin by preparing the sales budget. Gilder Tire Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total Budgeted tires to be sold Sales price per unit Total sales Enter any number in the edit fields and then click Check Answer. Data Table Requirements - X Gilder Tire Company Balance Sheet December 31, 2018 Assets Current Assets Cash Accounts Receivable Raw Materials Inventory 1. Prepare Gilder's operating budget and cash budget for 2019 by quarter. Required schedules and budgets include: sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budget Manufacturing overhead costs are allocated based on direct labor hours. Round all calculations to the nearest dollar. 2. Prepare Gilder's annual financial budget for 2019, including budgeted income statement and budgeted balance sheet. 45,000 32,000 3,800 5,200 Print Done 86,000 Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation 139,000 (50,000) 89,000 Print Done i Data Table More Info 86,000 89,000 175,000 Total Current Assets Property, Plant, and Equipment: Equipment 139,000 Less: Accumulated Depreciation (50,000) $ Total Assets Liabilities Current Liabilities: Accounts Payable $ Stockholders' Equity Common Stock, no par $ 110,000 Retained Earnings 60,000 Total Stockholders' Equity a. Budgeted sales are 2.000 tires for the first quarter and expected to increase by 250 tires per quarter. Cash sales are expected to be 30% of total sales, with the remaining 70% of sales on account. b. Finished Goods Inventory on December 31, 2018 consists of 200 tires at $26 each. c. Desired ending Finished Goods Inventory is 40% of the next quarter's sales, first quarter sales for 2020 are expected be 3,000 tires. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 400 pounds of rubber compound used to manufacture the tires. e. Direct materials requirements are 2 pounds of a rubber compound per tire. The cost of the compound is $9.50 per pound f. Desired ending Raw Materials Inventory is 40% of the next quarter's direct materials needed for production, desired ending inventory for December 31, 2019 is 400 pounds; indirect materials are insignificant and not considered for budgeting purposes. g. Each tire requires 0.40 hours of direct labor, direct labor costs average $14 per hour. h. Variable manufacturing overhead is $3 per tire. i. Fixed manufacturing overhead includes $3,500 per quarter in depreciation and $28,525 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,500 per quarter for salaries: $4,200 per quarter for rent: $900 per quarter for insurance, and $1,000 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of sales 5,000 170,000 175,000 Total Liabilities and Stockholders' Equity Print Done Print Done