Your job is to create the following documents:

Cash Budget (per quarter)

Beginning cash balance

Collections in quarter of sale

Collections in quarter following sale

Total cash available

Payments in quarter of purchase

Payments in quarter following purchase

Direct labor

Overhead

Selling and Administrative expense

Equipment purchases

Dividends

Total Cash Disbursements

Net cash balance

Minimum cash balance

Excess (Deficiency) of cash

Cash balance before interest on balance

Interest earned on cash balance

Cash balance after interest on balance

		Diesel Dynamo Company
			Budget Project
			Fall 2017
INPUT SECTION
SALES
		4th	1st	2nd	3rd	4th
		Quarter	Quarter	Quarter	Quarter	Quarter
		2017	2018	2018	2018	2018
	Budgeted Sales in units	43,000	37,900	34,500	31,000	43,000
	Budgeted Selling Price	$530	per production unit (Finished Good)
RECEIVABLES
	Receivables Collection Schedule	91.50%	quarter of sale
		5.50%	quarter following sale
		3.00%	uncollectible
		100.00%
	Policy		Entire projected uncollectible receivables are written off each quarter
INVENTORY COSTS
	Direct Labor	4.5	hours
		$19.50	per direct labor hour
	Raw Materials	3	direct material units per finished good production unit
		$85.00	per raw material unit
	Variable Overhead	$9.50	per Direct Labor Hour
	Fixed Overhead
	Depreciation	$304,000	per quarter
	Other Fixed Overhead	$950,000	per quarter
	Fixed Overhead Application Rate	CALCULATE FROM PRODUCTION BUDGET
INVENTORY ACCOUNTS
		4th	1st	2nd	3rd	4th
	Ending Finished Goods Inventory	Quarter	Quarter	Quarter	Quarter	Quarter
	in units	0	15,000	19,000	20,000	15,000
	Raw Materials Inventory
	Beginning Inventory 1/1/2018	28,436	units