Use the following data provided in the tables to complete the Missing Sections in Orange on the table below
Name: Optima Company Sales Budget for the year ending December 31, 2020 Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 Total Budgeted Sales (Units) 65,000.00 70,000.00 75,000.00 90,000.00 300,000.00 Unit Price 33.50 33.50 33.50 33.50 33.50 Total Sales $2, 177,500.00 $2,345,000.00 $2,512,500.00 $7,035,000.00 $14,070,000.00 Optima Company Production Budget for the year ending December 31, 2020 Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 Total Budgeted Sales (Units) 65,000 70,000 75,000 90,000 300,000 Desired Ending Inventory (Units) 28,000 30,000 36,000 36,000 130,000 Less: Beginning Inventory (Units) (26,000) (28,000) 30,000 36,000 12,000 Budgeted Production (Units) 67,000 72,000 141,000 162,000 442,000 Optima Company Direct Materials Purchases Budget for the year ending December 31, 2020 Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 Total Budgeted Production (Units) 67,000 72,000 141,000 162,000 442,000 Materials per unit 3 3 3 3 3 Production needs 201,000 216,000 423,000 486,000 1,326,000 Desired ending Inventory 64,800 126,900 145,800 81,000 418,500 Less: Beginning Inventory (60,300) (64,800) (126,900) (145,800) (397,800) Purchases 205,500 278, 100 441,900 421,200 1,346,700 Cost per unit 2.00 2.00 2.00 2.00 2.00 Purchase cost $411,000.00 $556,200.00 $883,800.00 $842,400.00 $2,693,400.00Optima Company Direct Labor Budget for the year ending December 31, 2020 Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 Total Budgeted Production (Units) 67,000 72,000 141,000 162,000 442,000 Hours per unit 0.50 0.50 0.50 0.50 0.50 Hours needed 33,500.00 36,000.00 70,500.00 81,000.00 221,000.00 Cost per hour 15.00 15.00 15.00 15.00 15.00 Total Cost $502,500.00 $540,000.00 $1,057,500.00 $1,215,000.00 $3,315,000.00 Optima Company Overhead Budget for the year ending December 31, 2020 Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 Total Budgeted hours 67,000 72,000 141,000 162,000 442,000 Variable Rate 8.00 8.00 8.00 8.00 8.00 Budgeted VOH 536,000.00 576,000.00 1, 128,000.00 1,296,000.00 3,536,000.00 Budgeted FOH 18,750.00 18,750.00 18,750.00 18,750.00 75,000.00 Total OH $554,750.00 $594,750.00 $1, 146,750.00 $1,314,750.00 $3,611,000.00 Optima Company Selling and Administrative Expenses Budget for the year ending December 31, 2020 Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 Total Budgeted Sales (Units) 65,000 70,000 75,000 90,000 300,000 Variable Rate 8.00 8.00 8.00 8.00 8.00 Variable expenses 520,000.00 560,000.00 600,000.00 720,000.00 2,400,000.00 Fixed expenses 200,000.00 200,000.00 200,000.00 200,000.00 800,000.00 Total expenses $720,000.00 $760,000.00 $800,000.00 $920,000.00 $3,200,000.00Optima Company Budgeted Cost Per Unit for the year ending December 31, 2020 Unit Cost Budgeted Manufacturing Costs: Direct Materials 6.00 Direct Labor 7.50 Overhead: Variable 8.00 Fixed 0.62 Total Unit Costs $22.12 Optima Company Cost of Goods Sold Budget for the year ending December 31, 2020 Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 Total Budgeted Sales (Units) 65,000 70,000 75,000 90,000 300,000 Budgeted Manufacturing Costs per unit 22.12 22.12 22. 12 22.12 22.12 Budgeted Cost of Goods Sold $1,437,941.18 $1,548,552.04 $1,659, 162.90 $1,990,995.48 $6,636,651.58 Optima Company Cash Budget for the year ending December 31, 2020 Budgeted Cash Receipts Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 Total Budgeted Sales Revenue 2, 177,500.00 2,345,000.00 2,512,500.00 7,035,000.00 14,070,000.00 Cash Collections 1,742,000.00 1,876,000.00 2,010,000.00 5,628,000.00 11,256,000.00 Credit Collections (Current Month) 217,750.00 234,500.00 251,250.00 703,500.00 1,407,000.00 Credit Collections (Following Month) 1, 105,500.00 217,750.00 234,500.00 251,250.00 1,809,000.00 Budgeted Cash Receipts $3,065,250.00 $2,328,250.00 $2,495,750.00 $6,582,750.00 $14,472,000.00Budgeted Cash Disbursements Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 Total Budgeted Raw Materials Purchases 411,000.00 556,200.00 883,800.00 842,400.00 2,693,400.00 Raw Materials Payments (Current Month) 328,800.00 444,960.00 707,040.00 673,920.00 2, 154,720.00 Raw Materials Payments (Following Month) 150,000.00 82,200.00 111,240.00 176,760.00 520,200.00 Direct Labor 502,500.00 540,000.00 1,057,500.00 1,215,000.00 3,315,000.00 Manufacturing Overhead 554,750.00 594,750.00 1, 146,750.00 1,314,750.00 3,611,000.00 less: Depreciation (75,000.00) (75,000.00) (75,000.00) (75,000.00) (300,000.00) Selling and Administrative Expenses 720,000.00 760,000.00 800,000.00 920,000.00 3,200,000.00 less: Depreciation 50,000.00 50,000.00 50,000.00 50,000.00 200,000.00 Equipment Purchases 750,000.00 750,000.00 Dividend Payments 250,000.00 250,000.00 $3,231,050.00 $2,396,910.00 $3,797,530.00 $4,275,430.00 13,700,920.00 Budgeted Annual Cash Flow Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 Total Beginning Cash Balance 250,000.00 84,200.00 40,000.00 40,000.00 414,200.00 Plus: Cash Receipts 3,065,250.00 2,328,250.00 2,495,750.00 6,582,750.00 14,472,000.00 Less: Cash Payments (3,231,050.00) (2,396,910.00) (3,797,530.00) (4,275,430.00) (13,700,920.00) Preliminary Cash Balance 84,200.00 15,540.00 (1,261,780.00) 2,347,320.00 1, 185,280.00 Cash Borrowed / Repaid 24,460.00 1,301,780.00 (1,326,240.00) Ending Cash Balance $84,200.00 $40,000.00 $40,000.00 $1,021,080.00 $1, 185,280.00Optima Company Income Statement for the year ending December 31, 2020 Sales Less: COGS Gross margin Less: S&A Expenses Income before taxes Optima Company Retained Earnings Statement for the year ending December 31, 2020 Beginning Retained Earnings Add: Net Income(Loss) Deduct Dividends Ending Retained Earnings Optima Company Balance Sheet Decmeber 31, 2020 Assets Liabilities and Stockholders Equity Cash Accounts Payable Accounts Receivable Line of Credit Payable Finished Goods Inventory Capital Stock Direct Materials Inventory Retained Earnings Plant, Property, and Equipment Total Assets Total Liabilities & Stockholders' EOPTIMA, INC. General information: Selling price of bamboo rocking horses 533.50 Linear feet of bamboo required per rocking horse Cost of bamboo per foot $2.00 Hours required to build 0.50 Average hourly direct labor rate $15.00 Additional information: Ending finished goods inventory (percentage of the next quarter's sales) 40% Ending raw materials inventory (percentage of the next quarter's production) 30% Quarters/Year Variable manufacturing overhead rate per direct labor hour $8.00 Estimated quarterly fixed manufacturing overhead $275,000.00 4 Estimated quarterly selling and administrative expenses: Variable $6.00 Fixed $200,000.00 Expected number of frames sold in following quarters: 4th Quarter 2019 55,000 1st Quarter 2020 65,000 2nd Quarter 2020 70,000 3rd Quarter 2020 75,000 4th Quarter 2020 90,000 1st Quarter 2021 90,000 2nd Quarter 2021 75,000 Additional information: Cash on hand at January 1st, 2020 $250,000 Percentage of sales in cash 80% Percentage of credit sales collected during quarter of sale 50% Percentage of credit sales collected in quarter following sale 50% Percentage of direct material purchases paid in quarter purchased 80% Percentage of direct material purchases paid in following quarter 20% Depreciation included in quarterly fixed manufacturing overhead $75,000 Depreciation included in quarterly fixed selling and administartive expenses $50,000 Amount expected to be paid for a piece of equipment (purchased in 4th Quarter of 2020) $750,000 Minimum cash balance required $40,000Borrowing increments Quarterly dividend payments $250,000 Regarding Inventory: Work-in-process has a zero beginning and ending balance. Direct Materials Inventory dollar amounts need to be rolled forward to get the ending balance: (Beginning + Purchased - Used = Ending) Finished Goods Inventory dollar amounts need to be rolled forward to get the ending balance: (Beginning + Produced - Sold = Ending) Optima Company Balance Sheet 12/31/2019 Assets Cash S 250,000.00 Finished goods invenotry 650,000.00 Direct materials inventory 60,300.00 Accounts receivable 225,000.00 Plant, Property, and equipment, net 3,500,000.00 Total assets 4,685,300.00 Liabilities and Stockholders' Equity Accounts Payable 90,000.00 Capital Stock 3,000,000.00 Retained earnings 1,595,300.00 Total liabilities and stockholders equity 4,685,300.00 0.00
