The Giseppe Tire Company manufactures racing tires for bicycles. Giseppe sells tires for $85 each. Giseppe is planning for the next year by developing a master budget by quarters. Giseppe's balance sheet for December 31, 2024, follows: (Click the icon to view the balance sheet.)

The Giseppe Tire Company manufactures racing tires for bicycles. Giseppe sells tires for $85 each. Giseppe is planning for the next year by developing a master budget by quarters Giseppe's balance sheet for December-31, 2024, follows: (Click the icon to view the balance sheet) Data table Requirements 1. Prepare Giseppe's operating budget and cash budget for 2025 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 Giseppe's annual financial budget for 2025 , including budgeted income statement and budgeted balance sheet. Using the browser's print option may create an undesirable printout. Use the Print option in your question instead to get a better print-out. (Uhless otherwise noted, assume af of the following events ocourted during 2024 and that any balances given ate stated as of December 31,2024. 8. Budgoted sates are 1,700 tires for the first quarter and expected to increase by 250 tires per quarter. Cash sates are expecled to be 30% of total sales, with the remaining 70% of sales on account. b. Finished Goods Inventory on December 31,2024 consists of 600 tires at $27 each. c. Desired ending Finished Goods Inventory is 20% of the next quarter's salas; first quarter sales for 2026 are expected be 2,700 lires. FiFO inventory costing method is used. d. Raw Materials inventory on December 31, 2024, consists of 1,200 pounds of nuber compound used to manufacture the tires. e. Direct materials requirements are two pounds of a rubber compound per tire. The cost of the compound is $4.00 per pound. 1. Desired ending Raw Materials frwentory is 20% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2025 is 1,200 pounds; indirect materials are insignificant and not considered for budgeting purposes. 9. Ench tire requires 0.50 hours of direct labor, direct boor costs average $25 per hour. h. Varlable manulacturing ovehead is $4 per tire. 1. Fixed manufacturing overhead indudes $1,500 per quartor in depreclation and $21,160 per quarter for other costs, such as ut ities, insurance, and property taxes. 1. Fixed seling and ndministratve oxpensos include $8,000 per quarter for salaries; \$4,200 per quarter for rent; $750 per quarter for insuranoe; and $500 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of saks. 1. Capatal expenditures include $45,000 for new manufacturing equipment, to be purchased and poid in the first quarter. m. Cash receipts for sules on acoount are B0\% in the quarter of the sale and 20% in the quarter following the sab; December 31 , 2024, Accounts Rece vabb is received in the first quarter of 2025; uncolloct bb accounts are considered insignificant and not considered for budgeting purposes. a. Direct materials purchases are paid 50% in the quarter purchasod and 50% in the following quarter; December 31,2024 , Accounfs Payoble is paid in the first quarter of 2025. o. Direct labor, manufacturing overhead, and seling and adiministrative costs are paid in the quarter incurred. p. Income tax expense is projected at $3.500 per quarter and is paid in the quarter incurred. 4. Greppe desires to maintain a minirum cash babance of $65,000 and borrows from the loca bank as needed in increments of $1,000 at the beginning of the quartec principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000, interest is 10% per year and paid at the beginning of the quarter based on the amount outstinding from the previous quarter. The Giseppe Tire Company manufactures racing tires for bicycles. Giseppe sells tires for $85 each. Giseppe is planning for the next year by developing a master budget by quarters Giseppe's balance sheet for December-31, 2024, follows: (Click the icon to view the balance sheet) Data table Requirements 1. Prepare Giseppe's operating budget and cash budget for 2025 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 Giseppe's annual financial budget for 2025 , including budgeted income statement and budgeted balance sheet. Using the browser's print option may create an undesirable printout. Use the Print option in your question instead to get a better print-out. (Uhless otherwise noted, assume af of the following events ocourted during 2024 and that any balances given ate stated as of December 31,2024. 8. Budgoted sates are 1,700 tires for the first quarter and expected to increase by 250 tires per quarter. Cash sates are expecled to be 30% of total sales, with the remaining 70% of sales on account. b. Finished Goods Inventory on December 31,2024 consists of 600 tires at $27 each. c. Desired ending Finished Goods Inventory is 20% of the next quarter's salas; first quarter sales for 2026 are expected be 2,700 lires. FiFO inventory costing method is used. d. Raw Materials inventory on December 31, 2024, consists of 1,200 pounds of nuber compound used to manufacture the tires. e. Direct materials requirements are two pounds of a rubber compound per tire. The cost of the compound is $4.00 per pound. 1. Desired ending Raw Materials frwentory is 20% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2025 is 1,200 pounds; indirect materials are insignificant and not considered for budgeting purposes. 9. Ench tire requires 0.50 hours of direct labor, direct boor costs average $25 per hour. h. Varlable manulacturing ovehead is $4 per tire. 1. Fixed manufacturing overhead indudes $1,500 per quartor in depreclation and $21,160 per quarter for other costs, such as ut ities, insurance, and property taxes. 1. Fixed seling and ndministratve oxpensos include $8,000 per quarter for salaries; \$4,200 per quarter for rent; $750 per quarter for insuranoe; and $500 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of saks. 1. Capatal expenditures include $45,000 for new manufacturing equipment, to be purchased and poid in the first quarter. m. Cash receipts for sules on acoount are B0\% in the quarter of the sale and 20% in the quarter following the sab; December 31 , 2024, Accounts Rece vabb is received in the first quarter of 2025; uncolloct bb accounts are considered insignificant and not considered for budgeting purposes. a. Direct materials purchases are paid 50% in the quarter purchasod and 50% in the following quarter; December 31,2024 , Accounfs Payoble is paid in the first quarter of 2025. o. Direct labor, manufacturing overhead, and seling and adiministrative costs are paid in the quarter incurred. p. Income tax expense is projected at $3.500 per quarter and is paid in the quarter incurred. 4. Greppe desires to maintain a minirum cash babance of $65,000 and borrows from the loca bank as needed in increments of $1,000 at the beginning of the quartec principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000, interest is 10% per year and paid at the beginning of the quarter based on the amount outstinding from the previous quarter