The Goldman Tire Company manufactures racing tires for bicycles. Goldman sells tires for $70 each. Goldman is planning for the next year by developing a master budget by quarters. Goldman's balance sheet for December 31, 2018, follows: (Click the icon to view the balance sheet) Goldman Tire Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory 44,000 50,000 4,000 12,000 110,000 Finished Goods Inventory Total Current Assets Property. Plant, and Equipment Equipment 139.000 150.000) 89.000 Less Accumulated Depreciation Less. Accumulated Depresidul 199,000 Total Assets Liabilities Current Liabilities: Accounts Payable 17,000 Stockholders' Equity $ Common Stock no par 160.000 22.000 182.000 Retained Earnings Total Stockholders Equity Total Liabilities and Stockholders' Equity 199.000 Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1.600 tires for the first quarter and expected to increase by 200 tires per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. b. Finished Goods Inventory on December 31, 2018 consists of 400 tires at $30 each. C. Desired ending Finished Goods Inventory is 20% of the next quarter's sales, first quarter sales for 2020 are expected be 2,400 tires. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 800 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 $5.00 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 800 pounds indirect materials are insignificant and not considered for budgeting purposes g. Each tire requires 0.70 hours of direct labor direct labor costs average $20 per hour h. Variable manufacturing overhead is $4 per tire i. Fixed manufacturing overhead includes $3.000 per quarter in depreciation and $26.952 per quarter for other costs, such as utilities insurance and property taxes i. Fixed selling and administrative expenses include $11.000 per quarter for salaries $5.400 per quarter j. Fixed selling and administrative expenses include $11,000 per quarter for salaries: $5,400 per quarter for rent: $1,050 per quarter for insurance, and $2,000 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of sales. I. Capital expenditures include $45.000 for new manufacturing equipment to be purchased and paid in the first quarter. m. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale: December 31, 2018, Accounts Receivable is received in the first quarter of 2019. uncollectible accounts are considered insignificant and not considered for budgeting purposes. n. Direct materials purchases are paid 60% in the quarter purchased and 40% in the following quarter, December 31, 2018. Accounts Payable is paid in the first quarter of 2019 o. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred p. Income tax expense is projected at $4.500 per quarter and is paid in the quarter incurred. q. Goldman desires to maintain a minimum cash balance of $40.000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1000, interest is 12% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter Requirements 1. Prepare Goldman'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 Goldman's annual financial budget for 2019, including budgeted income statement and budgeted balance sheet. Print Done Goldman Tire Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Budgeted tires to be sold Sales price per unit Total sales Goldman Tire Company Production Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total Plus: Total tires needed Less: Budgeted tires to be produced Goldman Tire Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1600 Third Fourth Quarter Quarter Total Budgeted tires to be produced 1800 7600 4400 15200 Direct materials per tire Direct materials needed for production Plus Desired direct materials in ending inventory Total direct materials needed Less Direct materials in beginning inventory Runda A Arteriale The Goldman Tire Company manufactures racing tires for bicycles. Goldman sells tires for $70 each. Goldman is planning for the next year by developing a master budget by quarters. Goldman's balance sheet for December 31, 2018, follows: ES (Click the icon to view the balance sheet.) Other data for Goldi A (Click the icon Read the requireme Third Fourth First Quarter Second Quarter Quarter Quarter Total Budgeted tires to be produced 1600 1800 2000 2200 7600 3200 3600 4000 4400 15200 Direct materials per tire Direct materials needed for production Plus: Desired direct materials in ending inventory Total direct materials needed Less: Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per pound Budgeted cost of direct materials Goldman Tire Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total Direct labor hours needed for production Budgeted direct labor cost Goldman Tire Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 Second Third Quarter Quarter Quarter First Fourth Quarter Total VOH cost per tire Budgeted VOH Budgeted FOH Depreciation Utilities, insurance property taxes Total budgeted FOH Budgeted FOH Depreciation Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate the cont of goods sold hud et calculate the projected manufacturing cost per tire for 2019. (Round all amounts Before preparing the cost of goods sold budget, calculate the projected manufacturing cost per tire for 2019. (Round all amounts to the nearest cer Total projected manufacturing cost per tire for 2019 Now prepare the cost of goods sold budget. Review the sales budget you prepared above. Review the production budget you prepared above. Goldman Tire Company Cost of Goods Sold Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Tires produced and sold in 2019 Total budgeted cost of goods sold Goldman Tire Company Selling and Administrative Expense Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total Total budgeted selling and administrative expense Prepare the cash receipts budget. (If a box is not used in the table leave the box empty, do not enter a zero.) Review the sales budget you prepared above Cash Receipts from Customers First Second Third Fourth Quarter Quarter Quarter Quarter Total Total sales First Second Quarter Third Quarter Fourth Quarter Quarter Total Cash Receipts from Customers: Accounts Receivable balance, December 31, 2018 1st Qtr-Cash sales 1st Qtr-Cash sales 1st Qtr-Credit sales, collection of Qtr. 1 sales in Qtr. 1 1st Qur-Credit sales, collection of Qtr. 1 sales in Qtr. 2 2nd Qur-Cash sales 2nd Qtr --Credit sales, collection of Qtr. 2 sales in Qtr. 2 2nd Qtr --Credit sales, collection of Qtr 2 sales in Qtr. 3 3rd Qtr-Cash sales 3rd Otr-Credit sales, collection of Qtr 3 sales in Qtr. 3 3rd Otr.--Credit sales, collection of Qtr 3 sales in Qtr. 4 4th Qtr.-Cash sales 4th Qtr.-Credit sales, collection of Qtr. 4 sales in Qtr. 4 Total cash receipts from customers Accounts Receivable balance, December 31, 2019: 4th Qtr. Credit sales, collection of Qtr. 4 sales in Qtr. 1 of 2020 Rronnm tho onch mantr hudant (Round all amounts ou entered into the hidnatto Cash Payments First Quarter Second Quarter Third Quarter Fourth Quarter Total Total direct materials purchases First Third Second Quarter Fourth Quarter Quarter Quarter Total Cash Payments Direct Materials: Accounts Payable balance, December 31, 2018 1st Otr- tr. 1 direct material purchases paid in Qtr. 1 Ist Otr- tr. 1 direct material purchases paid in Qtr. 2 2nd Otr-Qur: 2 direct material purchases paid in Qtr 2 ELAN URUT 2nd QuQtr. 2 direct material purchases paid in Qtr. 3 3rd Qtr-Qur. 3 direct material purchases paid in Qtr 3 3rd Qtr- tr. 3 direct material purchases paid in Qtr. 4 4th Qtr- tr. 4 direct material purchases paid in Qtr. 4 Total payments for direct materials Direct Labor: Total payments for direct labor Manufacturing Overhead: m y were Total payments for manufacturing overhead Selling and Administrative Expenses: Total payments for Selling and Admin. expenses Income Taxes: Total payments for income taxes Capital Expenditures: Total payments for capital expenditures Total cash payments (before interest) Accounts Payable balance, December 31, 2019: 4th QtrQtr. 4 direct material purchases paid in Qtr 1 of 2020 Goldman Tire Company Cash Budget For the Year Ended December 31, 2019 First Second Third Quarter | Quarter Quarter Fourth Quarter Total Beginning cash balance Cash receipts Cash available Cash payments Capital expenditures Purchases of direct materials Direct labor Manufacturing overhead Selling and administrative expenses Income taxes Interest expense Total cash payments Ending cash balance before financing Minimum cash balance desired Projected cash excess (de Ociency) Financing Borrowing Principal repayments Total effects of financing Total effects of financing Ending cash balance Requirement 2. Prepare Goldman's annual financial budget for 2019 including hudoefed income statement hudontodi halaman Goldman Tire Company Budgeted Income Statement For the Year Ended December 31, 2019 Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Expenses Operating Income Interest Expense Income before Income Taxes Income Tax Expense Net Income Goldman Tire Company Budgeted Balance Sheet December 31, 2019 Assets Current Assets Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity The Goldman Tire Company manufactures racing tires for bicycles. Goldman sells tires for $70 each. Goldman is planning for the next year by developing a master budget by quarters. Goldman's balance sheet for December 31, 2018, follows: (Click the icon to view the balance sheet) Goldman Tire Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory 44,000 50,000 4,000 12,000 110,000 Finished Goods Inventory Total Current Assets Property. Plant, and Equipment Equipment 139.000 150.000) 89.000 Less Accumulated Depreciation Less. Accumulated Depresidul 199,000 Total Assets Liabilities Current Liabilities: Accounts Payable 17,000 Stockholders' Equity $ Common Stock no par 160.000 22.000 182.000 Retained Earnings Total Stockholders Equity Total Liabilities and Stockholders' Equity 199.000 Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1.600 tires for the first quarter and expected to increase by 200 tires per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. b. Finished Goods Inventory on December 31, 2018 consists of 400 tires at $30 each. C. Desired ending Finished Goods Inventory is 20% of the next quarter's sales, first quarter sales for 2020 are expected be 2,400 tires. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 800 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 $5.00 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 800 pounds indirect materials are insignificant and not considered for budgeting purposes g. Each tire requires 0.70 hours of direct labor direct labor costs average $20 per hour h. Variable manufacturing overhead is $4 per tire i. Fixed manufacturing overhead includes $3.000 per quarter in depreciation and $26.952 per quarter for other costs, such as utilities insurance and property taxes i. Fixed selling and administrative expenses include $11.000 per quarter for salaries $5.400 per quarter j. Fixed selling and administrative expenses include $11,000 per quarter for salaries: $5,400 per quarter for rent: $1,050 per quarter for insurance, and $2,000 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of sales. I. Capital expenditures include $45.000 for new manufacturing equipment to be purchased and paid in the first quarter. m. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale: December 31, 2018, Accounts Receivable is received in the first quarter of 2019. uncollectible accounts are considered insignificant and not considered for budgeting purposes. n. Direct materials purchases are paid 60% in the quarter purchased and 40% in the following quarter, December 31, 2018. Accounts Payable is paid in the first quarter of 2019 o. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred p. Income tax expense is projected at $4.500 per quarter and is paid in the quarter incurred. q. Goldman desires to maintain a minimum cash balance of $40.000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1000, interest is 12% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter Requirements 1. Prepare Goldman'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 Goldman's annual financial budget for 2019, including budgeted income statement and budgeted balance sheet. Print Done Goldman Tire Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Budgeted tires to be sold Sales price per unit Total sales Goldman Tire Company Production Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total Plus: Total tires needed Less: Budgeted tires to be produced Goldman Tire Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter 1600 Third Fourth Quarter Quarter Total Budgeted tires to be produced 1800 7600 4400 15200 Direct materials per tire Direct materials needed for production Plus Desired direct materials in ending inventory Total direct materials needed Less Direct materials in beginning inventory Runda A Arteriale The Goldman Tire Company manufactures racing tires for bicycles. Goldman sells tires for $70 each. Goldman is planning for the next year by developing a master budget by quarters. Goldman's balance sheet for December 31, 2018, follows: ES (Click the icon to view the balance sheet.) Other data for Goldi A (Click the icon Read the requireme Third Fourth First Quarter Second Quarter Quarter Quarter Total Budgeted tires to be produced 1600 1800 2000 2200 7600 3200 3600 4000 4400 15200 Direct materials per tire Direct materials needed for production Plus: Desired direct materials in ending inventory Total direct materials needed Less: Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per pound Budgeted cost of direct materials Goldman Tire Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total Direct labor hours needed for production Budgeted direct labor cost Goldman Tire Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 Second Third Quarter Quarter Quarter First Fourth Quarter Total VOH cost per tire Budgeted VOH Budgeted FOH Depreciation Utilities, insurance property taxes Total budgeted FOH Budgeted FOH Depreciation Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate the cont of goods sold hud et calculate the projected manufacturing cost per tire for 2019. (Round all amounts Before preparing the cost of goods sold budget, calculate the projected manufacturing cost per tire for 2019. (Round all amounts to the nearest cer Total projected manufacturing cost per tire for 2019 Now prepare the cost of goods sold budget. Review the sales budget you prepared above. Review the production budget you prepared above. Goldman Tire Company Cost of Goods Sold Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Tires produced and sold in 2019 Total budgeted cost of goods sold Goldman Tire Company Selling and Administrative Expense Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total Total budgeted selling and administrative expense Prepare the cash receipts budget. (If a box is not used in the table leave the box empty, do not enter a zero.) Review the sales budget you prepared above Cash Receipts from Customers First Second Third Fourth Quarter Quarter Quarter Quarter Total Total sales First Second Quarter Third Quarter Fourth Quarter Quarter Total Cash Receipts from Customers: Accounts Receivable balance, December 31, 2018 1st Qtr-Cash sales 1st Qtr-Cash sales 1st Qtr-Credit sales, collection of Qtr. 1 sales in Qtr. 1 1st Qur-Credit sales, collection of Qtr. 1 sales in Qtr. 2 2nd Qur-Cash sales 2nd Qtr --Credit sales, collection of Qtr. 2 sales in Qtr. 2 2nd Qtr --Credit sales, collection of Qtr 2 sales in Qtr. 3 3rd Qtr-Cash sales 3rd Otr-Credit sales, collection of Qtr 3 sales in Qtr. 3 3rd Otr.--Credit sales, collection of Qtr 3 sales in Qtr. 4 4th Qtr.-Cash sales 4th Qtr.-Credit sales, collection of Qtr. 4 sales in Qtr. 4 Total cash receipts from customers Accounts Receivable balance, December 31, 2019: 4th Qtr. Credit sales, collection of Qtr. 4 sales in Qtr. 1 of 2020 Rronnm tho onch mantr hudant (Round all amounts ou entered into the hidnatto Cash Payments First Quarter Second Quarter Third Quarter Fourth Quarter Total Total direct materials purchases First Third Second Quarter Fourth Quarter Quarter Quarter Total Cash Payments Direct Materials: Accounts Payable balance, December 31, 2018 1st Otr- tr. 1 direct material purchases paid in Qtr. 1 Ist Otr- tr. 1 direct material purchases paid in Qtr. 2 2nd Otr-Qur: 2 direct material purchases paid in Qtr 2 ELAN URUT 2nd QuQtr. 2 direct material purchases paid in Qtr. 3 3rd Qtr-Qur. 3 direct material purchases paid in Qtr 3 3rd Qtr- tr. 3 direct material purchases paid in Qtr. 4 4th Qtr- tr. 4 direct material purchases paid in Qtr. 4 Total payments for direct materials Direct Labor: Total payments for direct labor Manufacturing Overhead: m y were Total payments for manufacturing overhead Selling and Administrative Expenses: Total payments for Selling and Admin. expenses Income Taxes: Total payments for income taxes Capital Expenditures: Total payments for capital expenditures Total cash payments (before interest) Accounts Payable balance, December 31, 2019: 4th QtrQtr. 4 direct material purchases paid in Qtr 1 of 2020 Goldman Tire Company Cash Budget For the Year Ended December 31, 2019 First Second Third Quarter | Quarter Quarter Fourth Quarter Total Beginning cash balance Cash receipts Cash available Cash payments Capital expenditures Purchases of direct materials Direct labor Manufacturing overhead Selling and administrative expenses Income taxes Interest expense Total cash payments Ending cash balance before financing Minimum cash balance desired Projected cash excess (de Ociency) Financing Borrowing Principal repayments Total effects of financing Total effects of financing Ending cash balance Requirement 2. Prepare Goldman's annual financial budget for 2019 including hudoefed income statement hudontodi halaman Goldman Tire Company Budgeted Income Statement For the Year Ended December 31, 2019 Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Expenses Operating Income Interest Expense Income before Income Taxes Income Tax Expense Net Income Goldman Tire Company Budgeted Balance Sheet December 31, 2019 Assets Current Assets Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity