The Excel worksheet form that appears below is to be used to recreate the Review Problem related to Mynor Corporation. Download the workbook containing this form from Connect, where you will also receive instructions about how to use this worksheet form.

You should proceed to the requirements below only after completing your worksheet.
Required:
1. Check your worksheet by changing the budgeted unit sales in Quarter 2 of Year 2 in cell C5 to 75,000 units. The total expected cash collections for the year should now be $2,085,000. If you do not get this answer, find the errors in your worksheet and correct them. Have the total cash disbursements for the year changed? Why or why not?
2. The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget:

a. What are the total expected cash collections for the year under this revised budget?
b. What is the total required production for the year under this revised budget?
c. What is the total cost of raw materials to be purchased for the year under this revised budget?
d. What are the total expected cash disbursements for raw materials for the year under this revised budget?
e. After seeing this revised budget, the production manager cautioned that due to the limited availability of a complex milling machine, the plant can produce no more than 90,000 units in any one quarter. Is this a potential problem? If so, what can be done about it?

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1 Chapter 8: Applying Excel 3 Data 4. 5 Budgeted unit sales Year 2 Quater Year3 Quarfer 40.000 50.000 70,000 80,000 7. Selling price per unit 8.Accounts receivable beginning balance 9Sales collected in the quarter sales are made 10 Sales collected in the quaer afer sales are made 11Desired ending finished goods inventory is 12 Finished goods inventory, beginning 13Raw materials required to produce one unit 14 Desired ending inventory of raw materials is 15 Raw materials inventory, beginning 15 Raw material costs 17 - Raw materials purchases are paid 18 and 19 .Accounts payable for ray materials, beginning balance 81.500 20 21 Enfer a formule into each of the cella marked wth a? below 22 Review Problem: Budget Schedules 23 24 Construct the sales budget 25 26 Budgeted unit sales 27 Selling price per unit 28 Total sales 29 30 Construct the schedule of expected cash collections 31. 32 Beginning balance accounts receivable 33 First-quarter sales 34 Second-quarter sales 35 Third-quarter sales 36 Fourth-quarter sales 37 Total cash collections 38 9 Construct the production budget 58 $65,000 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds 10% ofthe next quarter's production needs 23,000 pounds 50.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase Year 2 Quarter Year 3 Quarter Year 2 Quarter Year Year 2 Quarter Year 3 Quarter Year 41 Budgeted unit sales 42 Add desired ending finished goods inventory 43 Total needs 44 Lass baginning finished goods inventory 4S Required production in units Year 3 Quarter 47 Construct the raw materials 48 49 Required production (units) O Raw materials required to produce one unit (pounds) 51 Production needs (pounds) 52 Add desired ending inventory of raw materials (pounds) 53 Total needs ipounds) 54 Less beginning inventory of raw materials (paunds) 55 Raw materials to be purchased (pounds) 56 Cost of ra materials per pound 57 Cost of rew materials to be purchased 58 59 Construct the schedule of expected cash payments 60 61 Beginning balance accounts payable 62 First-quarter purchases 63 Second-quarter purchases 64 Third-quarter purchases 65 Fourth-quarter purchases 66 Total cash disbursements 6J Year 2 Quarter Year Year 2 Quarter Year fr 8 Froman Year 2 Quarter Year 3 Quarter Data 2 4 2 Budgeted unit sales 50,000 70,000 120,000 80,000 90,000 100,000 $7