the selling and admin budget, budget IS, sch of exp collections, sch of exp paymetns DM, cash budget, and budgeted BS
Budgeted Income Statement Additional items: Interest expense is expected to be $150 Income taxes are estimated to be $10,000 Cash Budget Assumptions 1. The January 1, 2020, cash balance is expected to be $32,000. The Company wishes to maintain a balance of at least $15,000. 2. Sales: 60% are collected in the quarter sold and 40% are collected in the following quarter. Accounts receivable of $70,000 at December 31, 2019, are expected to be collected in full in the first quarter of 2020. 3. Short-term investments are expected to be sold for $2,500 cash in the first quarter. 4. Direct materials: 50% are paid in the quarter purchased and 50% are paid in the following quarter. Accounts payable of $11,700 at December 31, 2019, are expected to be paid in full in the first quarter of 2020. 5. Direct labor: 100% is paid in the quarter incurred. 6. Manufacturing overhead and selling and administrative expenses: All items except depreciation are paid in the quarter incurred. 7. Management plans to purchase equipment in the third quarter for $7,000 cash. 8. The Company makes equal quarterly payments of its estimated annual income taxes. 9. Loans are repaid in the earliest quarter in which there is sufficient cash (that is, when the cash on hand exceeds the $15,000 minimum required balance). Budgeted Balance Sheet Pertinent data from the budgeted balance sheet at December 31, 2019, are as follows. Buildings and equipment $182,000 Accumulated depreciation 28,800 Common stock 225,000 Retained earnings 46,410 My Company Sales Budget For the Year Ending December 31, 2020 Quarter 1 IN 10 3 4 Year Expected unit sales 3,100 3,600 4,100 4,600 15,400 Unit selling price 50 50 50 50 Total sales 155,000 180,000 205,000 230,000 770,000 My Company Sales Budget For the Year Ending December 31, 2020 Quarter 1 IN 3 4 Year Expected unit sales 3,100 3,600 4,100 4,600 15,400 Unit selling price 50 50 50 50 Total sales 155,000 180,000 205,000 230,000 770,000 - My Company Production Budget For the Year Ending December 31, 2020 Quarter 1 IN 3 4 Year Expected unit sales 3,100 3,600 4,100 4,600 Add: Desired ending FG unit 720 820 920 Total required units 3,820 4,420 5,020 4,600 Less: Beginning FG units 620 720 820 920 Required production units 3,200 3,700 4,200 3,680 My Company Direct Materials Budget For the Year Ending December 31, 2020 Quarter IH 1 IN 10 3 4 Year Units to be produced 3,200 3,700 4,200 4,700 DM per unit 2 2 2 2 Total materials needed for productic 6,400 7,400 8,400 9,400 Add: Desired ending DM inventory 740 840 940 1,200 Total materials required 7,140 8,240 9,340 10,600 Less: Beginning DM inventory 640 740 840 940 DM purchases 6,500 7,500 8,500 9,660 Cost per pound 3 3 3 3 Total cost of DM purchases 19,500 22,500 25,500 28,980 96,480 My Company Direct Labor Budget For the Year Ending December 31, 2020 Quarter IH 1 1 2 10 3 Year Units to be produced 3,200 3,700 4,200 4,700 DL time per unit 2 2 2 2 Total required DL hours 6,400 7,400 8,400 9,400 DL cost per hour 9 9 9 9 Total DL cost 57,600 66,600 75,600 84,600 284,400 My Company Manufacturing Overhead Budget For the Year Ending December 31, 2020 Quarter 1 2 3 4 4 sti Year Variable Costs indirect matierials (1.25) 8,000 9,250 10,500 11,750 indirect labor (1.10) 7,040 8,140 9,240 10,340 utility (0.35) 2,240 2,590 2,940 3,290 1 maintenance (0.25) 1,600 1,850 2,100 2,350 2 Total variable costs 18,880 21,830 24,780 27,730 S Fixed costs superviser salary 15,000 15,000 15,000 15,000 depreciation 3,500 3,500 3,500 3,500 5 property tax 9,250 9,250 9,250 9,250 - maintenance fee 4,300 4,300 4,300 4,300 B Total fixed costs 32,050 32,050 32,050 32,050 Total manufacturing OH 50,930 53,880 56,830 59,780 221,420 Direct labor hours 6,400 7,400 8,400 9,400 Manufacturing OH rate per DL hour E 7 G My Company Selling and Administrative Expense Budget For the Year Ending December 31, 2020 Quarter 1 IN 3 4 Year Budgeted sales in units Variable expenses 1 Total variable expenses 2 Fixed expenses 3 4 5 5 3 Total fixed expenses Total selling and admin expense My Company Budgeted Income Statement . For the Year Ending December 31, 2020 Sales = Cost of good sold Gross profit Selling and administrative expense Income from operations o Interest expense 1 Income before taxes 2 Income tax expense 3 Net income 4 A E G H I 1 My Company 2 Schedule of expected collections 3 4 Quarter 5 Sales 1 IN mi 3 4 6 A/R, 12/31/19 7 First quarter 8 Second quarter 9 Third quarter 10 Fourth quarter 11 Total collections C My Company Schedule of expected payments for DM Quarter Purchases IH 1 2 ml 3 3 4 A/P, 12/31/19 First quarter = Second quarter - Third quarter Fourth quarter 1 Total payments My Company Cash Budget For the Year Ending December 31, 2020 Quarter 1 2 3 4 Beginning cash balance Add Receipts Total receipts 2 Total available cash 3 Less: Disbursements 4 5 7 Total disbursements Excess (deficiency) e Financing 3 Add: Borrowings 4 Less: Repayments (including interest) 5 Ending cash balance A 00 B C D E F F G 1 My Company 2 Budgeted Balance Sheet 3 December 31, 2020 4 5 Assets 6 Current assets 7 Cash 3 Accounts receivable 9 Finished goods inventory 10 Raw materials inventory 11 Total current assets 12 Property, plant, and equipment 13 Buildings and equipment 14 Less: Accumulated depreciation 15 Total assets 16 Liabilities and Stockholders Equity 17 Liabilities 18 Accounts payable 19 Stockholders equity 20 Common stock 21 Retained earnings 22 Total stockholders equity 23 Total liabilities and stockholders equity
