What are the steps I need to take to make an analysis of cash requirements for the following:

? Purchases for the year for BBCC's most costly source of direct ingredients ?

vanilla flavoring. Base this on the 20X8 forecast sales, the budgeted costs

for BBCC's three products and BBCC's paying habits in Exhibit 8. Note: Show all supporting schedules and calculations ? include production budget, direct material usage budget ? vanilla, direct material purchase budget ? vanilla and cash disbursement schedule for vanilla purchase. Round quantities to litres.

Production and cash requirements

The following tables provide the details required to prepare the production and

purchases budget for 20X8. Additional information is as follows:

BBCC's accounts payable payment policy is to pay 80% of purchases in the quarter

purchased and the remainder in the quarter following purchase.

When planning for ending chocolate bar inventories, the company's policy is to have

7% of the next quarter's sales available on hand at the end of the quarter for The-

Bar and Alamonde. Because Salt-Lick is made to order, no ending inventories of

bars are kept. Also, it plans to have 9% of next quarter's estimated ingredients

requirements on hand at the end of the quarter for all products.

Exhibit 2 Actual operating income statement For the year ended December 31, 20X7 The-Bar Per Alamonde Per Salt-Lick Per Total bar bar bar Volume 776,000 528,000 302.500 1,606,500 Sales $1,164,000 $1.50 $ 897,600 $1.70 $ 605,000 $2.00 $2,666,600 Cost of goods 945.595 724.672 448.187 2.118.454 sold Gross margin $ 218,405 $ 172,928 $ 156,813 548,146 Selling and 541.681 administrative expenses Operating 6.465 income Gross margin % 18.8% 19.3% 25.9% 20.6% Budgeted operating income statement For the year ended December 31, 20X7 The-Bar Per Alamonde Per Salt-Lick Per Total bar bar bar Volumes 774,400 529,100 301.400 1,604,900 Sales $1,161,600 $1.50 $ 952,380 $1.80 $ 602,800 $2.00 $2,716,780 Cost of goods 196.034 690,756 390.297 2.077.087 sold Gross margin $ 165,566 $ 261,624 $ 212,503 $ 639,693 Selling and 542.554 administrative expenses Operating 97.139 income Gross margin % 14.3% 27.5% 35.2% 23.5%Exhibit 3 Actual cost of product manufactured For the year ended December 31, 20X7 The-Bar Alamonde Salt-Lick Total Direct ingredients used $ 333,507 $ 232,724 $ 129,948 S 696,179 Direct labour 135,876 123,926 70,338 330,140 Manufacturing overhead 476,954 367,795 247,901 1,092,650 Total manufacturing costs $ 946,337 $ 724,445 $ 448, 187 $ 2,118,969 Add: beginning work-in-process 1,196 837 2,033 Deduct: ending work-in-process (1.207) (815) (2.022) Cost of goods manufactured $ 946,326 $ 724,467 $ 448, 187 $ 2,1 18,980 Budgeted cost of product manufactured For the year ended December 31, 20X7 The-Bar Alamonde Salt-Lick Total Direct ingredients used $ 330,271 $ 231,514 $ 128,694 $ 690,479 Direct labour 147,744 101,736 57,996 307,476 Manufacturing overhead 518.685 357.165 203.607 1.079.457 Total manufacturing costs $ 996,700 $ 690,415 $ 390,297 $ 2,077,412 Add: beginning work-in-process 2,991 2,094 5,085 Deduct: ending work-in-process (2.885) (1.949 (4.834) Cost of good manufactured $ 996.806 $ 690.560 $ 390.297 $ 2.077.663Exhibit 4 Other budgeted and actual schedules are provided below to help with the analysis. Actual quantity and cost of direct ingredients For the year ended December 31, 20X7 Ingredient Price The-Bar Alamonde Salt-Lick Total Quantity Cost Quantity Cost Quantity Cost Quantity Cost Chocolate liquor $5.55/kg 27.160 $150.738 18,480 $102,564 8,894 $49.359 54.534 $302,661 Cocoa butter $6.10/kg 10,321 62.957 7.022 42,837 2,753 16.792 20.096 122,586 Cocoa powder $1.18/kg 5.432 6,410 2.218 2,617 2,118 2.499 9,768 11,525 Cane sugar 50.70/kg 10,321 7,225 7.022 4,916 6.247 4.372 23.590 16,513 Emulalfier 50.80/kg 462 369 739 590 212 169 1,413 1,129 Vanilla $70 litre 625 43.728 370 25,872 424 29.645 1,418 99,245 Almonds $10/kg 1,109 11,088 1,109 11,088 Himalayan salt $5.50/kg 529 2.912 529 2,912 Cost of ingredients $271,427 $190,484 $105,748 $567.659 Wrappers $0.08/bar 776,000 627080 528,000 12,240 302,500 24,200 1,606.500 128,520 Total cost $333,507 $232,724 $129,948 $696,179 Budgeted quantity and cost of direct ingredients For the year ended December 31, 20X7 Ingredient Price The-Bar Alamonde Salt-Lick Total Quantity Cost Quantity Cost Quantity Cost Quantity Cost Chocolate liquor $5.50/kg 27.104 $149.072 18,519 $101,852 8,861 $48.736 54.484 $299,660 Cocoa butter $6.00/kg 10 300 61.797 7.037 42,222 2,743 16.456 20.079 120,476 Cocoa powder $1.15/kg 5.421 6,234 2.222 2,556 2,110 2.426 9,753 11,216 Cane sugar 50.70/kg 10 300 7,210 7,037 4,926 6.224 4.357 23.560 16,492 Emulsifier $0.80/kg 461 369 741 593 211 169 1,412 1,130 Vanilla $70/litre 625 43.637 370 25,926 424 29.537 1,418 99, 101 Almonds $10/kg 1,109 11,111 1,109 11,111 Himalayan salt $5.50/kg 520 2.901 529 2,901 Cost of ingredients $268,319 $189, 186 $104,582 $562,087 Wrappers $0.08/bar 776,000 61.952 528,000 42,328 302,500 24.112 1,606.500 128,392 Total cost $330,271 $231,514 $128,694 $690,479Table 1: Sales forecasts for 20X8 and the first half of 20X9 Quarter The-Bar Alamonde Salt-lick Total 20X8 Q1 180,400 118,800 66,000 365,200 20X8 Q2 187,000 123,200 69,300 379,500 20X8 Q3 206,800 134,200 77,000 418,000 20X8 04 178.200 116.600 68,200 363.000 20X8 totals 752,400 492,800 280,500 1,525,700 20X9 Q1 188,600 124,200 69,000 381,800 20X9 Q2 193,200 127,650 70,150 391,000 Table 2: Ending inventories and last-quarter ingredients purchases The-Bar Alamonde Salt-Lick 12,628 8,316 0 Sugar Vanilla Almonds 482 kg 29 litres 23 kg Fourth-quarter 20X7 purchases Sugar Vanilla Almonds $3,800 $23,000 $2,500Table 3: Budgeted costs of ingredients (per 1,000 bars) Ingredients Price The-Bar Alamonde Salt-Lick Chocolate liquor $5.50 per kg $ 192.50 $ 192.50 $ 161.70 Cocoa butter $6.00 per kg 79.80 79.80 54.60 Cocoa powder $1.15 per kg 8.05 4.83 8.05 Cane sugar $0.70 per kg 9.31 9.31 14.46 Emulsifier $0.80 per kg 0.48 1.12 0.56 Vanilla $70.00 per litre 56.35 49.00 98.00 Almonds $10.00 per kg 0.00 21.00 0.00 Himalayan salt $5.50 per kg 0.00 0.00 9.63 Other 0.08 per bar 80.00 80.00 80.00 Total cost of ingredients $ 426.49 437.56 $ 426.99