QUESTION
ANSWER
Answer 1-
AWM MANUFACTURING LTD | ||||||||||||||
Expected sales of canoes | ||||||||||||||
2019 | 2020 | |||||||||||||
quarter 1 | quarter 2 | quarter 3 | quarter 4 | quarter 1 | quarter2 | |||||||||
1. Budgeted Sales in (units) | 3225 | 3245 | 3255 | 3300 | 3325 | 3350 | ||||||||
selling price | $425 | |||||||||||||
Expected sales of Kayak | ||||||||||||||
Budgeted Sales in (units) | 2,000 | 2100 | 2150 | 2200 | 2225 | 2250 | ||||||||
Selling price | $260 | |||||||||||||
Percentage of Sales | 100% | |||||||||||||
Both canoe and Kayak sales on account | ||||||||||||||
Percentage of sales collected in quarter of the sales | 50% | |||||||||||||
Percentage of sales collected in following quarter | 25% | |||||||||||||
Percentage of sales collected in the second quarter following | 22% | |||||||||||||
Remaining percent never collected(bad debt) | 3% | |||||||||||||
Account receivables collections | ||||||||||||||
Balance of opening A/R will be collected in the first quarter of 2019 | 75% | |||||||||||||
Balance of opening A/R will be collected in the second quarter of 2019 | 25% | |||||||||||||
2. Direct Materials of canoe | ||||||||||||||
Polyurethane: | ||||||||||||||
Amount of Litres | 4.7 | |||||||||||||
cost per Litre | $16.30 | |||||||||||||
Styrofoam: | ||||||||||||||
amount of Kilograms | 7.6 | |||||||||||||
cost per Kilogram | $6.45 | |||||||||||||
Direct Labour of canoe | ||||||||||||||
Direct Labour hours | 2.6 | |||||||||||||
Rate per hour | $17 | |||||||||||||
Variable Overhead in canoe applied(basis of number of units produced) | ||||||||||||||
Fixed overhead in canoe is applied(basis of Labour hours) | ||||||||||||||
Direct Materials of Kayak’s | ||||||||||||||
Polypropylene: | ||||||||||||||
Amount of Litres | 2.4 | |||||||||||||
Cost per Liter | $25.50 | |||||||||||||
Fiberglass gel-coated: | ||||||||||||||
Amount of Liters | 5 | |||||||||||||
cost per Litre | $16.50 | |||||||||||||
Direct Labour of Kayak’s | ||||||||||||||
Direct Labour hours | 1.5 | |||||||||||||
Rate per hour | $19 | |||||||||||||
Variable Overhead in Kayak Department applied(basis of number of units produced) | ||||||||||||||
Kayak department is automated | ||||||||||||||
Amount of machine hours of Kayak | 2.6 | |||||||||||||
Fixed Overhead in the Kayak Department is applied(basis of machine hours) | ||||||||||||||
maintaining Direct material ending inventory as follows: | ||||||||||||||
Polyurethane: % of the next quarter’s production | 35% | |||||||||||||
Styrofoam: % of the next quarter’s production | 35% | |||||||||||||
Polypropylene: % of the next quarter’s production | 25% | |||||||||||||
Fiberglass gel-coat: % of the next quarter’s production | 20% | |||||||||||||
Raw Materials purchased | ||||||||||||||
% of purchases paid in quarter of purchases | 80% | |||||||||||||
% of purchases paid in the following quarter | 20% | (Expected to pay full account payable balance in the first quarter of 2019 as noted on Dec 31st, 2018, Balance sheet) | ||||||||||||
Maintaining ending finished goods inventory: % of next quarter’s forecasted sales | 30% | |||||||||||||
No beginning or ending work-in-period (all canoes and Kayaks are started and finished in the same quarter | ||||||||||||||
Beginning inventory of finished goods: | ||||||||||||||
for canoe | 160 | *Ask the prof if these two should be added to use on production budget* | ||||||||||||
for Kayaks | 120 | |||||||||||||
3. Estimated variable overhead cost for Canoe Department: | 2019 | |||||||||||||
Indirect material | $35,000 | |||||||||||||
Indirect Labour | 57,000 | |||||||||||||
Employee benefits | 84,000 | |||||||||||||
Inspections | 32,000 | |||||||||||||
Utilities | 42,000 | |||||||||||||
Total | $250,000 | (ask prof if he wants formular here) | ||||||||||||
POHR | (Using predetermined overhead rate based on number of units produced) | *Ask prof if you can input formular here | ||||||||||||
Canoe Department | 2019 | |||||||||||||
4.Fixed Manufacturing overhead cost | ||||||||||||||
Supervisor’s salaries | $214,000 | |||||||||||||
Property tax | 32,000 | (cash paid in fourth quarter) | ||||||||||||
Insurance | 35,000 | |||||||||||||
Maintenance | 41,000 | |||||||||||||
Utilities | 52,000 | |||||||||||||
Engineering time | 41,200 | |||||||||||||
Depriciation | 90,000 | |||||||||||||
Total | $505,200 | (ask prof if he wants formular here) | ||||||||||||
POHR | (based on direct-labour hours) | |||||||||||||
Per quarter | ||||||||||||||
Kayak Department | ||||||||||||||
5. Estimated variable overhead cost | ||||||||||||||
Indirect material | $32,000 | |||||||||||||
Indirect Lbour | 57,000 | |||||||||||||
Employee benefits | 82,000 | |||||||||||||
Inspections | 31,000 | |||||||||||||
Utilities | 41,000 | |||||||||||||
Total | $243,000 | |||||||||||||
POHR | (based on number of units produced) | |||||||||||||
6. Estimated Fixed Overhead Cost | ||||||||||||||
Supervisor’s Salaries | $205,000.00 | |||||||||||||
Property Tax | $28,000.00 | |||||||||||||
Insurance | $45,000.00 | |||||||||||||
Maintenance | $47,000.00 | |||||||||||||
Utilities | $51,000.00 | |||||||||||||
Engineering Time | $64,000.00 | |||||||||||||
Depreciation | $110,000.00 | |||||||||||||
Total | $550,000.00 | |||||||||||||
POHR | (based on nos of machine hrs | |||||||||||||
Per Quarter | ||||||||||||||
7. Variable Selling and Administration Expenses | ||||||||||||||
Sales Salaries | $365,000.00 | |||||||||||||
Administration Salaries | $425,000.00 | |||||||||||||
Travel | $152,000.00 | |||||||||||||
Insurance | $55,000.00 | |||||||||||||
Utilities | $74,000.00 | |||||||||||||
Depreciation | $22,000.00 | |||||||||||||
Other | $5,200.00 | |||||||||||||
Total | $1,098,200.00 | |||||||||||||
*commissions budgeted at 6% of slaes dollars for each quarter | ||||||||||||||
Amount paid in quarter earned | 75.00% | |||||||||||||
Amount paid in following quarter | 25.00% | |||||||||||||
Variable Administration Costs | $2.50 | *paid for in quarter incurred | ||||||||||||
8. Quarterly Income Tax Payments | ||||||||||||||
Marginal Tax Rate | 32.00% | |||||||||||||
9. Financing and Investing Activities | ||||||||||||||
Land Purchase | $250,000.00 | |||||||||||||
Line of Credit – Increments of $2500 | Borrow in increments of 2,500 | |||||||||||||
Line of Credit Interest Rate – Annual | 14.00% | |||||||||||||
Ending Cash Balance Minimum | $25,000.00 | |||||||||||||
Long Term Debt | $240,000.00 | |||||||||||||
Long Term Debt Repayment *End of quarter | $15,000.00 | $15,000.00 | $15,000.00 | $15,000.00 | $15,000.00 | $15,000.00 | ||||||||
LTD Interest Rate | 9.00% | |||||||||||||
10. The Company’s Unclassified Balance Sheet for December 31, 2018 | ||||||||||||||
Current Assets: | ||||||||||||||
Cash | $25,000.00 | |||||||||||||
Accounts Receivable(net) | $100,000.00 | |||||||||||||
Raw Material Inventory | $26,645.00 | |||||||||||||
Finished goods inventory | $94,800.00 | |||||||||||||
Total Current Assets | $246,445.00 | |||||||||||||
Long-term assets | ||||||||||||||
Buildings and equipment | $2,030,000.00 | |||||||||||||
Accumulated depreciation | $314,000.00 | $1,716,000.00 | ||||||||||||
Total Assets | $1,962,445.00 | |||||||||||||
Current Liabilities: | ||||||||||||||
Accounts payable | $70,000.00 | |||||||||||||
Commissions payable | $15,740.00 | |||||||||||||
Total Current Liabilities | $85,740.00 | |||||||||||||
Long-term debt | $240,000.00 | |||||||||||||
Total liabilities | $325,740.00 | |||||||||||||
Shareholders’ Equity | ||||||||||||||
Capital stock | $1,299,000.00 | |||||||||||||
Retained earnings | $337,705.00 | $1,636,705.00 | ||||||||||||
Total Liabilities and Shareholders’ Equity | $1,962,445.00 | |||||||||||||
Beginning Raw Materials Inventory: | ||||||||||||||
400 liters of Polyurethane | $16.30 | $6,520.00 | ||||||||||||
600 kgs of Styrofoam | $6.25 | $3,750.00 | ||||||||||||
200 litres of Polyproylene | $18.00 | $3,600.00 | ||||||||||||
350 litres of Fiberglass | $36.50 | $12,775.00 | ||||||||||||
Total | $26,645.00 | |||||||||||||
AWM MANUFACTURING, LTD | ||||||||||||||
Sales Budget | ||||||||||||||
For the Year Ended December 31,2019 | ||||||||||||||
Canoe Sales | 2019 | 2020 | ||||||||||||
Quarter | Quarter | |||||||||||||
1 | 2 | 3 | 4 | Total | 1 | 2 | ||||||||
Budget Sales in (units) | 3,225 | 3,245 | 3,255 | 3,300 | 13,025 | 3,325 | 3,350 | |||||||
selling price per unit | $425 | $425 | $425 | $425 | $425 | $425 | $425 | |||||||
Total Sales | $1,370,625 | $1,379,125 | $1,383,375 | $1,402,500 | $5,535,625 | $1,413,125 | $1,423,750 | |||||||
Kayaks Sales | ||||||||||||||
Budget saless in (units) | 2000.00 | 2100.00 | 2150.00 | 2200.00 | 8450.00 | $2,225 | $2,250 | |||||||
selling price per unit | $260.00 | $260.00 | $260.00 | $260.00 | $260.00 | $260.00 | $260.00 | |||||||
Total sales | $520,000.00 | $546,000.00 | $559,000.00 | $572,000.00 | $2,197,000.00 | $578,500.00 | $585,000.00 | |||||||
Totalsales of Canoe and Kayaks | $1,890,625 | $1,925,125 | $1,942,375 | $1,974,500 | $7,732,625 | $1,991,625 | $2,008,750 | |||||||
Schedules of Expected cash Collections | 1 | 2 | 3 | 4 | Total | 1 | 2 | |||||||
Account Receivable,beginning balance | $75,000.00 | $25,000.00 | $100,000.00 | |||||||||||
First- quarter sales | $945,312.50 | $472,656.25 | $415,937.50 | $1,833,906.25 | ||||||||||
Second-quarter sales | $962,562.50 | $481,281.25 | $423,527.50 | $1,867,371.25 | ||||||||||
Third-quarter sales | $971,187.50 | $485,593.75 | $1,456,781.25 | |||||||||||
Fourth -quarter sales | $987,250 | $987,250.00 | ||||||||||||
Total Cash collections | $1,020,312.50 | $1,460,218.75 | $1,868,406.25 | $1,896,371.25 | $6,245,308.75 | |||||||||
AWM MANUFACTURING,LTD | ||||||||||||||
Production Budget | ||||||||||||||
For the Year Ended December 31, 2019 | ||||||||||||||
Canoe Sales | ||||||||||||||
1 | 2 | 3 | 4 | ToTal | ||||||||||
Budgeted Sales( units) | 3,225 | 3,245 | 3,255 | 3,300 | 13,025 |
Sales Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Total | ||
Budgted Units-canoes | 3225 | 3245 | 3255 | 3300 | 13,025 | |
Budgeted Units-Kayak | 2,000 | 2,100 | 2,150 | 2,200 | 8,450 | |
Budgeted selling price/ unit | ||||||
canoes | $425.00 | |||||
Kayak | $260.00 | |||||
Budgeted sales | ||||||
canoes | $1,370,625.00 | $1,379,125.00 | $1,383,375.00 | $1,402,500.00 | $5,535,625.00 | |
Kayak | $520,000.00 | $546,000.00 | $559,000.00 | $572,000.00 | $2,197,000.00 | |
Total | $1,890,625.00 | $1,925,125.00 | $1,942,375.00 | $1,974,500.00 | $7,732,625.00 | |
Schedule of Reciepts | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Closing | ||
sales collected in quarter of the sales | $945,312.50 | $962,562.50 | $971,187.50 | $987,250.00 | ||
sales collected in following quarter | 75000 | $497,656.25 | $481,281.25 | $485,593.75 | $246,812.50 | |
sales collected in the second quarter following | $415,937.50 | $423,527.50 | $213,661.25 | |||
bad debt | $56,718.75 | $57,753.75 | $58,271.25 | $59,235.00 | ||
Total Reciepts | $1,020,312.50 | $1,460,218.75 | $1,868,406.25 | $1,896,371.25 | $6,245,308.75 | $460,473.75 |
Production Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Sales Q-1 2020 | Closing | |
Opening | ||||||
canoes | 160 | 973.5 | 976.5 | 990 | 997.5 | |
Kayak | 120 | 630 | 645 | 660 | 667.5 | |
Budgted Sales unit | ||||||
canoes | 3225 | 3245 | 3255 | 3300 | 3325 | 3350 |
Kayak | 2000 | 2100 | 2150 | 2200 | 2225 | 2250 |
Budgted Closing stock | ||||||
canoes | 973.5 | 976.5 | 990 | 997.5 | 1005 | 1665 |
Kayak | 630 | 645 | 660 | 667.5 | 675 | |
Budgeted Production | ||||||
canoes | 4038.5 | 3248 | 3268.5 | 3307.5 | 3332.5 | 13862.5 |
Kayak | 2510 | 2115 | 2165 | 2207.5 | 2232.5 | 8997.5 |
22860 | ||||||
Direct Material Purchased Budget | Closing | |||||
Budgeted Production | Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Sales Q-1 2020 | |
canoes | 4038.5 | 3248 | 3268.5 | 3307.5 | 3332.5 | |
Opening | ||||||
Polyurethane: | 400 | 1136.8 | 1143.975 | 1157.625 | ||
Styrofoam: | 600 | 1136.8 | 1143.975 | 1157.625 | ||
Production | ||||||
Polyurethane: | 18980.95 | 15265.6 | 15361.95 | 15545.25 | ||
Styrofoam: | 30692.6 | 24684.8 | 24840.6 | 25137 | ||
Closing | ||||||
Polyurethane: | 1136.8 | 1143.975 | 1157.625 | 1166.375 | 19011.9125 | |
Styrofoam: | 1136.8 | 1143.975 | 1157.625 | 1166.375 | 7523.11875 | |
Direct Material Required | ||||||
Canoes | ||||||
Polyurethane: | 19717.75 | 15272.775 | 15375.6 | 15554 | ||
Styrofoam: | 31229.4 | 24691.975 | 24854.25 | 25145.75 | ||
Kayak | 2510 | 2115 | 2165 | 2207.5 | 2232.5 | |
Opening | ||||||
Polypropylene: | 200 | 528.75 | 541.25 | 551.875 | ||
Fiberglass gel-coated: | 350 | 423 | 433 | 441.5 | ||
Production | ||||||
Polypropylene: | 6024 | 5076 | 5196 | 5298 | ||
Fiberglass gel-coated: | 12550 | 10575 | 10825 | 11037.5 | ||
Closing | ||||||
Polypropylene: | 528.75 | 1299 | 1324.5 | 1339.5 | 34157.25 | |
Fiberglass gel-coated: | 423 | 2165 | 2207.5 | 2232.5 | 36836.25 | |
Direct Material Required | 97528.53125 | |||||
Kayak | ||||||
Polypropylene: | 6352.75 | 5846.25 | 5979.25 | 6085.625 | ||
Fiberglass gel-coated: | 12623 | 12317 | 12599.5 | 12828.5 | ||
Schedule of disbursement | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | |||
Polyurethane: | 19717.75 | 15272.775 | 15375.6 | 15554 | ||
Styrofoam: | 31229.4 | 24691.975 | 24854.25 | 25145.75 | ||
Polypropylene: | 6352.75 | 5846.25 | 5979.25 | 6085.625 | ||
Fiberglass gel-coated: | 12623 | 12317 | 12599.5 | 12828.5 | ||
Money Required for Direct Material | $893,103.58 | $760,519.35 | $771,294.82 | $782,573.98 | ||
Disbursement in Same quarter | $714,482.86 | $608,415.48 | $617,035.85 | $626,059.18 | ||
Disbursement in following quarter | $178,620.72 | $152,103.87 | $154,258.96 | $156,514.80 | ||
Disbursement of last Year | $70,000.00 | |||||
Total | $1,677,586.44 | $1,368,934.82 | $1,388,330.67 | $1,408,633.16 | ||
Direct Labour Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | |||
canoes | 4038.5 | 3248 | 3268.5 | 3307.5 | ||
Kayak | 2510 | 2115 | 2165 | 2207.5 | ||
Direct Labour Hours | ||||||
canoes | 10500.1 | 8444.8 | 8498.1 | 8599.5 | ||
Kayak | 3765 | 3172.5 | 3247.5 | 3311.25 | ||
Direct Labour Hours Required | 14265.1 | 11617.3 | 11745.6 | 11910.75 | ||
Direct Labour Budget | $250,036.70 | $203,839.10 | $206,170.20 | $209,105.25 | ||
Overhead Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Total | ||
Variable Overhead | ||||||
Canoe | $72,831.38 | $58,575.29 | $58,945.00 | $59,648.33 | $250,000.00 | |
Kayak | $67,788.83 | $57,120.87 | $58,471.24 | $59,619.06 | $243,000.00 | |
Fixed Overhead | ||||||
Canoe | $147,177.65 | $118,368.95 | $119,116.05 | $120,537.35 | $505,200.00 | |
Kayak-Machine Hours | 6526 | 5499 | 5629 | 5739.5 | ||
Kayak | $153,431.51 | $129,285.91 | $132,342.32 | $134,940.26 | $550,000.00 | |
Total Overhead | $441,229.37 | $363,351.02 | $368,874.60 | $374,745.00 | $1,548,200.00 | |
Cash Disbursement | ||||||
Property Tax-Canoe | -9322 | -7498 | -7545 | -7635 | ||
Property Tax-Kayak | -7811 | -6582 | -6737 | -6870 | ||
Property Tax | 60000 | |||||
Total Cash Disbursement for OH | $424,095.90 | $349,271.56 | $354,592.22 | $420,240.33 | $1,548,200.00 | |
Selling and Administrative Overhead Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Total | ||
Total S&A | 268509.642585797 | 273409.388790999 | 275859.2618936 | 280421.706729603 | 1098200 | |
Commission | $82,237.50 | $82,747.50 | $83,002.50 | $84,150.00 | $332,137.50 | |
Variable Admin Cost | 13062.5 | 13362.5 | 13512.5 | 13750 | $53,687.50 | |
Total | 363809.642585797 | 369519.388790999 | 372374.2618936 | 378321.706729603 | 1484025 | |
Cash Disbursement-Same Quarter | 272857.231939348 | 277139.541593249 | 279280.6964202 | 283741.280047203 | ||
Cash Disbursement-Following Quarter | 15740 | 68214.307984837 | 69284.8853983124 | 69820.17410505 | $21,037.50 | |
Total Disbursement for S&A | $288,597.23 | $345,353.85 | $348,565.58 | $353,561.45 | ||
Cash Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Total | ||
Opening | $25,000.00 | $27,315.56 | $27,016.81 | $25,721.22 | $25,000.00 | |
Reciepts | $1,020,312.50 | $1,460,218.75 | $1,868,406.25 | $1,896,371.25 | $6,245,308.75 | |
Disbursement for direct material | $1,677,586.44 | $1,368,934.82 | $1,388,330.67 | $1,408,633.16 | $5,843,485.09 | |
Direct Labour Budget | $250,036.70 | $203,839.10 | $206,170.20 | $209,105.25 | $869,151.25 | |
Total Cash Disbursement for OH | $424,095.90 | $349,271.56 | $354,592.22 | $420,240.33 | $1,548,200.00 | |
Total Disbursement for S&A | $288,597.23 | $345,353.85 | $348,565.58 | $353,561.45 | $1,336,078.12 | |
Principal Payment of debt | $15,000.00 | $15,000.00 | $15,000.00 | $15,000.00 | $60,000.00 | |
Interest Payment of debt | $5,400.00 | $5,062.50 | $4,725.00 | $4,387.50 | $19,575.00 | |
Payment For Land | $250,000.00 | $250,000.00 | ||||
Interest on Borrwing | $58,275.00 | $90,037.50 | $118,387.50 | $266,700.00 | ||
Tax | $22,280.67 | $22,280.67 | $22,280.67 | $22,280.67 | $89,122.68 | |
Closing Cash before borrowing | $-1,637,684.44 | $-880,483.19 | $-784,278.78 | $-629,503.39 | ||
Borrowing | $1,665,000.00 | $907,500.00 | $810,000.00 | $655,000.00 | $4,037,500.00 | |
Closing Cash | $27,315.56 | $27,016.81 | $25,721.22 | $25,496.61 | $25,496.61 | $0.00 |
Cost Of goods Manufactured Budget | ||||||
Total | ||||||
Direct Material | $3,034,486.63 | |||||
Direct Labour | $869,151.25 | |||||
Overhead | $1,548,200.00 | |||||
Total | $5,451,837.88 | |||||
Cost of Goods Sold Budget | ||||||
Cost of Goods Manufactured | $5,451,837.88 | |||||
Selling and Admin Oh | $1,484,025.00 | |||||
Total | $6,935,862.88 | |||||
Proforma Income statement | ||||||
Revenue | $7,732,625.00 | |||||
COGS | $5,451,837.88 | |||||
Gross Profit | $2,280,787.13 | |||||
Selling and Admin | $1,484,025.00 | |||||
Bad Debt | $231,978.75 | |||||
Profit Before interest and Tax | $564,783.38 | |||||
Interest | $286,275.00 | |||||
Profit Before Tax | $278,508.38 | |||||
Tax | $89,122.68 | |||||
Profit After Tax | $189,385.70 | |||||
Proforma Balance sheet | ||||||
Current Assets: | ||||||
Cash | $25,496.61 | |||||
Accounts Receivable(net) | $460,473.75 | |||||
Raw Material Inventory | $97,528.53 | |||||
Finished goods inventory | $397,082.68 | |||||
Total Current Assets | $980,581.57 | |||||
Long-term assets | ||||||
Buildings and equipment | $2,280,000.00 | |||||
Accumulated depreciation | $419,200.00 | $1,860,800.00 | ||||
Total Assets | $2,841,381.57 | |||||
Current Liabilities: | ||||||
Accounts payable | $156,514.80 | |||||
Commissions payable | $21,037.50 | |||||
Short Term Debt | $657,738.58 | |||||
Total Current Liabilities | $835,290.88 | |||||
Long-term debt | 180000 | |||||
Total liabilities | $1,015,290.88 | |||||
Shareholders’ Equity | ||||||
Capital stock | 1299000 | |||||
Retained earnings | $527,090.70 | $1,826,090.70 | ||||
Total Liabilities and Shareholders’ Equity | $2,841,381.57 |
Answer 2-
Price increase and Credit Tight
Sales Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Total | ||
Budgted Units-canoes | 3128.25 | 3147.65 | 3157.35 | 3201 | 12,634 | |
Budgeted Units-Kayak | 1,940 | 2,037 | 2,086 | 2,134 | 8,197 | |
Budgeted selling price/ unit | ||||||
canoes | $425.00 | |||||
Kayak | $260.00 | |||||
Budgeted sales | ||||||
canoes | $1,462,456.88 | $1,471,526.38 | $1,476,061.13 | $1,496,467.50 | $5,906,511.88 | |
Kayak | $554,840.00 | $582,582.00 | $596,453.00 | $610,324.00 | $2,344,199.00 | |
Total | $2,017,296.88 | $2,054,108.38 | $2,072,514.13 | $2,106,791.50 | $8,250,710.88 | |
Schedule of Reciepts | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Closing | ||
sales collected in quarter of the sales | $1,613,837.50 | $1,643,286.70 | $1,658,011.30 | $1,685,433.20 | ||
sales collected in following quarter | 75000 | $327,594.53 | $308,116.26 | $310,877.12 | $421,358.30 | |
sales collected in the second quarter following | ||||||
bad debt | $100,864.84 | $102,705.42 | $103,625.71 | $105,339.58 | ||
Total Reciepts | $1,688,837.50 | $1,970,881.23 | $1,966,127.56 | $1,996,310.32 | $7,622,156.61 | $421,358.30 |
Production Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Sales Q-1 2020 | Closing | |
Opening | ||||||
canoes | 160 | 944.295 | 947.205 | 960.3 | 967.575 | |
Kayak | 120 | 611.1 | 625.65 | 640.2 | 647.475 | |
Budgted Sales unit | ||||||
canoes | 3128.25 | 3147.65 | 3157.35 | 3201 | 3225.25 | 3350 |
Kayak | 1940 | 2037 | 2085.5 | 2134 | 2158.25 | 2250 |
Budgted Closing stock | ||||||
canoes | 944.295 | 947.205 | 960.3 | 967.575 | 1005 | 1615.05 |
Kayak | 611.1 | 625.65 | 640.2 | 647.475 | 675 | |
Budgeted Production | ||||||
canoes | 3912.545 | 3150.56 | 3170.445 | 3208.275 | 3262.675 | 13441.825 |
Kayak | 2431.1 | 2051.55 | 2100.05 | 2141.275 | 2185.775 | 8723.975 |
22165.8 | ||||||
Direct Material Purchased Budget | Closing | |||||
Budgeted Production | Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Sales Q-1 2020 | |
canoes | 3912.545 | 3150.56 | 3170.445 | 3208.275 | 3262.675 | |
Opening | ||||||
Polyurethane: | 400 | 1102.696 | 1109.65575 | 1122.89625 | ||
Styrofoam: | 600 | 1102.696 | 1109.65575 | 1122.89625 | ||
Production | ||||||
Polyurethane: | 18388.9615 | 14807.632 | 14901.0915 | 15078.8925 | ||
Styrofoam: | 29735.342 | 23944.256 | 24095.382 | 24382.89 | ||
Closing | ||||||
Polyurethane: | 1102.696 | 1109.65575 | 1122.89625 | 1141.93625 | 18613.560875 | |
Styrofoam: | 1102.696 | 1109.65575 | 1122.89625 | 1141.93625 | 7365.4888125 | |
Direct Material Required | ||||||
Canoes | ||||||
Polyurethane: | 19091.6575 | 14814.59175 | 14914.332 | 15097.9325 | ||
Styrofoam: | 30238.038 | 23951.21575 | 24108.6225 | 24401.93 | ||
Kayak | 2510 | 2115 | 2165 | 2207.5 | 2185.775 | |
Opening | ||||||
Polypropylene: | 200 | 528.75 | 541.25 | 551.875 | ||
Fiberglass gel-coated: | 350 | 423 | 433 | 441.5 | ||
Production | ||||||
Polypropylene: | 6024 | 5076 | 5196 | 5298 | ||
Fiberglass gel-coated: | 12550 | 10575 | 10825 | 11037.5 | ||
Closing | ||||||
Polypropylene: | 528.75 | 1299 | 1324.5 | 1311.465 | 33442.3575 | |
Fiberglass gel-coated: | 423 | 2165 | 2207.5 | 2185.775 | 36065.2875 | |
Direct Material Required | 95486.6946875 | |||||
Kayak | ||||||
Polypropylene: | 6352.75 | 5846.25 | 5979.25 | 6057.59 | ||
Fiberglass gel-coated: | 12623 | 12317 | 12599.5 | 12781.775 | ||
Schedule of disbursement | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | |||
Polyurethane: | 19091.6575 | 14814.59175 | 14914.332 | 15097.9325 | ||
Styrofoam: | 30238.038 | 23951.21575 | 24108.6225 | 24401.93 | ||
Polypropylene: | 6352.75 | 5846.25 | 5979.25 | 6057.59 | ||
Fiberglass gel-coated: | 12623 | 12317 | 12599.5 | 12781.775 | ||
Money Required for Direct Material | $876,503.99 | $748,273.06 | $758,966.85 | $768,856.58 | ||
Disbursement in Same quarter | $701,203.19 | $598,618.45 | $607,173.48 | $615,085.26 | ||
Disbursement in following quarter | $175,300.80 | $149,654.61 | $151,793.37 | $153,771.32 | ||
Disbursement of last Year | $70,000.00 | |||||
Total | $1,647,707.18 | $1,346,891.51 | $1,366,140.33 | $1,383,941.85 | ||
Direct Labour Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | |||
canoes | 3912.545 | 3150.56 | 3170.445 | 3208.275 | ||
Kayak | 2431.1 | 2051.55 | 2100.05 | 2141.275 | ||
Direct Labour Hours | ||||||
canoes | 10172.617 | 8191.456 | 8243.157 | 8341.515 | ||
Kayak | 3646.65 | 3077.325 | 3150.075 | 3211.9125 | ||
Direct Labour Hours Required | 13819.267 | 11268.781 | 11393.232 | 11553.4275 | ||
Direct Labour Budget | $242,220.84 | $197,723.93 | $199,985.09 | $202,832.09 | ||
Overhead Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Total | ||
Variable Overhead | ||||||
Canoe | $72,768.11 | $58,596.21 | $58,966.04 | $59,669.63 | $250,000.00 | |
Kayak | $67,716.53 | $57,144.44 | $58,495.37 | $59,643.66 | $243,000.00 | |
Fixed Overhead | ||||||
Canoe | $147,049.80 | $118,411.22 | $119,158.58 | $120,580.39 | $505,200.00 | |
Kayak-Machine Hours | 6320.86 | 5334.03 | 5460.13 | 5567.315 | ||
Kayak | $153,267.86 | $129,339.26 | $132,396.93 | $134,995.95 | $550,000.00 | |
Total Overhead | $440,802.31 | $363,491.13 | $369,016.93 | $374,889.63 | $1,548,200.00 | |
Cash Disbursement | ||||||
Property Tax-Canoe | -9314 | -7500 | -7548 | -7638 | ||
Property Tax-Kayak | -7803 | -6585 | -6740 | -6873 | ||
Property Tax | 60000 | |||||
Total Cash Disbursement for OH | $423,685.26 | $349,406.27 | $354,729.07 | $420,379.40 | $1,548,200.00 | |
Selling and Administrative Overhead Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Total | ||
Total S&A | 268509.642585797 | 273409.388790999 | 275859.2618936 | 280421.706729603 | 1098200 | |
Commission | $87,747.41 | $88,291.58 | $88,563.67 | $89,788.05 | $354,390.71 | |
Variable Admin Cost | 12670.625 | 12961.625 | 13107.125 | 13337.5 | $52,076.88 | |
Total | 368927.680085797 | 374662.596290999 | 377530.0543936 | 383547.256729604 | 1504667.5875 | |
Cash Disbursement-Same Quarter | 276695.760064348 | 280996.947218249 | 283147.5407952 | 287660.442547203 | ||
Cash Disbursement-Following Quarter | 15740 | 69173.940016087 | 70249.2368045624 | 70786.8851988 | $22,447.01 | |
Total Disbursement for S&A | $292,435.76 | $350,170.89 | $353,396.78 | $358,447.33 | ||
Cash Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Total | ||
Opening | $25,000.00 | $24,127.64 | $24,555.45 | $26,333.41 | $25,000.00 | |
Reciepts | $1,688,837.50 | $1,970,881.23 | $1,966,127.56 | $1,996,310.32 | $7,622,156.61 | |
Disbursement for direct material | $1,647,707.18 | $1,346,891.51 | $1,366,140.33 | $1,383,941.85 | $5,744,680.87 | |
Direct Labour Budget | $242,220.84 | $197,723.93 | $199,985.09 | $202,832.09 | $842,761.95 | |
Total Cash Disbursement for OH | $423,685.26 | $349,406.27 | $354,729.07 | $420,379.40 | $1,548,200.00 | |
Total Disbursement for S&A | $292,435.76 | $350,170.89 | $353,396.78 | $358,447.33 | $1,354,450.75 | |
Principal Payment of debt | $15,000.00 | $15,000.00 | $15,000.00 | $15,000.00 | $60,000.00 | |
Interest Payment of debt | $5,400.00 | $5,062.50 | $4,725.00 | $4,387.50 | $19,575.00 | |
Payment For Land | $250,000.00 | $250,000.00 | ||||
Interest on Borrwing | $35,437.50 | $49,612.50 | $74,287.50 | $159,337.50 | ||
Tax | $75,760.82 | $75,760.82 | $75,760.82 | $75,760.82 | $303,043.29 | |
Closing Cash before borrowing | $-988,372.36 | $-380,444.55 | $-678,666.59 | $-512,392.76 | ||
Borrowing | $1,012,500.00 | $405,000.00 | $705,000.00 | $537,500.00 | $2,660,000.00 | |
Closing Cash | $24,127.64 | $24,555.45 | $26,333.41 | $25,107.24 | $25,107.24 | $0.00 |
Cost Of goods Manufactured Budget | ||||||
Total | ||||||
Direct Material | $2,981,637.22 | |||||
Direct Labour | $842,761.95 | |||||
Overhead | $1,548,200.00 | |||||
Total | $5,372,599.18 | |||||
Cost of Goods Sold Budget | ||||||
Cost of Goods Manufactured | $5,372,599.18 | |||||
Selling and Admin Oh | $1,504,667.59 | |||||
Total | $6,877,266.76 | |||||
Proforma Income statement | ||||||
Revenue | $8,250,710.88 | |||||
COGS | $5,372,599.18 | |||||
Gross Profit | $2,878,111.70 | |||||
Selling and Admin | $1,504,667.59 | |||||
Bad Debt | $247,521.33 | |||||
Profit Before interest and Tax | $1,125,922.78 | |||||
Interest | $178,912.50 | |||||
Profit Before Tax | $947,010.28 | |||||
Tax | $303,043.29 | |||||
Profit After Tax | $643,966.99 | |||||
Proforma Balance sheet | ||||||
Current Assets: | ||||||
Cash | $25,107.24 | |||||
Accounts Receivable(net) | $421,358.30 | |||||
Raw Material Inventory | $95,486.69 | |||||
Finished goods inventory | $379,572.02 | |||||
Total Current Assets | $921,524.25 | |||||
Long-term assets | ||||||
Buildings and equipment | $2,280,000.00 | |||||
Accumulated depreciation | $419,200.00 | $1,860,800.00 | ||||
Total Assets | $2,782,324.25 | |||||
Current Liabilities: | ||||||
Accounts payable | $153,771.32 | |||||
Commissions payable | $22,447.01 | |||||
Short Term Debt | $145,433.93 | |||||
Total Current Liabilities | $321,652.26 | |||||
Long-term debt | 180000 | |||||
Total liabilities | $501,652.26 | |||||
Shareholders’ Equity | ||||||
Capital stock | 1299000 | |||||
Retained earnings | $981,671.99 | $2,280,671.99 | ||||
Total Liabilities and Shareholders’ Equity | $2,782,324.25 |
Inventory Change
Sales Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Total | ||
Budgted Units-canoes | 3225 | 3245 | 3255 | 3300 | 13,025 | |
Budgeted Units-Kayak | 2,000 | 2,100 | 2,150 | 2,200 | 8,450 | |
Budgeted selling price/ unit | ||||||
canoes | $425.00 | |||||
Kayak | $260.00 | |||||
Budgeted sales | ||||||
canoes | $1,370,625.00 | $1,379,125.00 | $1,383,375.00 | $1,402,500.00 | $5,535,625.00 | |
Kayak | $520,000.00 | $546,000.00 | $559,000.00 | $572,000.00 | $2,197,000.00 | |
Total | $1,890,625.00 | $1,925,125.00 | $1,942,375.00 | $1,974,500.00 | $7,732,625.00 | |
Schedule of Reciepts | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Closing | ||
sales collected in quarter of the sales | $945,312.50 | $962,562.50 | $971,187.50 | $987,250.00 | ||
sales collected in following quarter | 75000 | $497,656.25 | $481,281.25 | $485,593.75 | $246,812.50 | |
sales collected in the second quarter following | $415,937.50 | $423,527.50 | $213,661.25 | |||
bad debt | $56,718.75 | $57,753.75 | $58,271.25 | $59,235.00 | ||
Total Reciepts | $1,020,312.50 | $1,460,218.75 | $1,868,406.25 | $1,896,371.25 | $6,245,308.75 | $460,473.75 |
Production Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Sales Q-1 2020 | Closing | |
Opening | ||||||
canoes | 160 | 129.8 | 130.2 | 132 | 129.01 | |
Kayak | 120 | 84 | 86 | 88 | 86.33 | |
Budgted Sales unit | ||||||
canoes | 3225 | 3245 | 3255 | 3300 | 3225.25 | 3350 |
Kayak | 2000 | 2100 | 2150 | 2200 | 2158.25 | 2250 |
Budgted Closing stock | ||||||
canoes | 129.8 | 130.2 | 132 | 129.01 | 134 | 215.34 |
Kayak | 84 | 86 | 88 | 86.33 | 90 | |
Budgeted Production | ||||||
canoes | 3194.8 | 3245.4 | 3256.8 | 3297.01 | 3230.24 | 12994.01 |
Kayak | 1964 | 2102 | 2152 | 2198.33 | 2161.92 | 8416.33 |
21410.34 | ||||||
Direct Material Purchased Budget | Closing | |||||
Budgeted Production | Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Sales Q-1 2020 | |
canoes | 3194.8 | 3245.4 | 3256.8 | 3297.01 | 3230.24 | |
Opening | ||||||
Polyurethane: | 400 | 1135.89 | 1139.88 | 1153.9535 | ||
Styrofoam: | 600 | 1135.89 | 1139.88 | 1153.9535 | ||
Production | ||||||
Polyurethane: | 15015.56 | 15253.38 | 15306.96 | 15495.947 | ||
Styrofoam: | 24280.48 | 24665.04 | 24751.68 | 25057.276 | ||
Closing | ||||||
Polyurethane: | 1135.89 | 1139.88 | 1153.9535 | 1130.584 | 18428.5192 | |
Styrofoam: | 1135.89 | 1139.88 | 1153.9535 | 1130.584 | 7292.2668 | |
Direct Material Required | ||||||
Canoes | ||||||
Polyurethane: | 15751.45 | 15257.37 | 15321.0335 | 15472.5775 | ||
Styrofoam: | 24816.37 | 24669.03 | 24765.7535 | 25033.9065 | ||
Kayak | 2510 | 2115 | 2165 | 2207.5 | 2161.92 | |
Opening | ||||||
Polypropylene: | 200 | 528.75 | 541.25 | 551.875 | ||
Fiberglass gel-coated: | 350 | 423 | 433 | 441.5 | ||
Production | ||||||
Polypropylene: | 6024 | 5076 | 5196 | 5298 | ||
Fiberglass gel-coated: | 12550 | 10575 | 10825 | 11037.5 | ||
Closing | ||||||
Polypropylene: | 63.45 | 64.95 | 66.225 | 64.8576 | 1653.8688 | |
Fiberglass gel-coated: | 63.45 | 64.95 | 66.225 | 64.8576 | 1070.1504 | |
Direct Material Required | 28444.8052 | |||||
Kayak | ||||||
Polypropylene: | 5887.45 | 4612.2 | 4720.975 | 4810.9826 | ||
Fiberglass gel-coated: | 12263.45 | 10216.95 | 10458.225 | 10660.8576 | ||
Schedule of disbursement | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | |||
Polyurethane: | 15751.45 | 15257.37 | 15321.0335 | 15472.5775 | ||
Styrofoam: | 24816.37 | 24669.03 | 24765.7535 | 25033.9065 | ||
Polypropylene: | 5887.45 | 4612.2 | 4720.975 | 4810.9826 | ||
Fiberglass gel-coated: | 12263.45 | 10216.95 | 10458.225 | 10660.8576 | ||
Money Required for Direct Material | $769,291.12 | $694,001.15 | $702,417.53 | $712,255.92 | ||
Disbursement in Same quarter | $615,432.90 | $555,200.92 | $561,934.02 | $569,804.73 | ||
Disbursement in following quarter | $153,858.22 | $138,800.23 | $140,483.51 | $142,451.18 | ||
Disbursement of last Year | $70,000.00 | |||||
Total | $1,454,724.02 | $1,249,202.07 | $1,264,351.56 | $1,282,060.65 | ||
Direct Labour Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | |||
canoes | 3194.8 | 3245.4 | 3256.8 | 3297.01 | ||
Kayak | 1964 | 2102 | 2152 | 2198.33 | ||
Direct Labour Hours | ||||||
canoes | 8306.48 | 8438.04 | 8467.68 | 8572.226 | ||
Kayak | 2946 | 3153 | 3228 | 3297.495 | ||
Direct Labour Hours Required | 11252.48 | 11591.04 | 11695.68 | 11869.721 | ||
Direct Labour Budget | $197,184.16 | $203,353.68 | $205,282.56 | $208,380.25 | ||
Overhead Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Total | ||
Variable Overhead | ||||||
Canoe | $61,466.78 | $62,440.31 | $62,659.64 | $63,433.27 | $250,000.00 | |
Kayak | $56,705.48 | $60,689.87 | $62,133.50 | $63,471.16 | $243,000.00 | |
Fixed Overhead | ||||||
Canoe | $101,592.30 | $103,201.34 | $103,563.85 | $104,842.50 | $413,200.00 | |
Kayak-Machine Hours | 5106.4 | 5465.2 | 5595.2 | 5715.658 | ||
Kayak | $108,977.19 | $116,634.45 | $119,408.82 | $121,979.55 | $467,000.00 | |
Total Overhead | $328,741.75 | $342,965.97 | $347,765.81 | $353,726.47 | $1,373,200.00 | |
Cash Disbursement | ||||||
Property Tax-Canoe | -7868 | -7992 | -8020 | -8119 | ||
Property Tax-Kayak | -6534 | -6993 | -7159 | -7314 | ||
Property Tax | 60000 | |||||
Total Cash Disbursement for OH | $314,340.04 | $327,980.54 | $332,585.96 | $398,293.46 | $1,373,200.00 | |
Selling and Administrative Overhead Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Total | ||
Total S&A | 268509.642585797 | 273409.388790999 | 275859.2618936 | 280421.706729603 | 1098200 | |
Commission | $82,237.50 | $82,747.50 | $83,002.50 | $84,150.00 | $332,137.50 | |
Variable Admin Cost | 13062.5 | 13362.5 | 13512.5 | 13750 | $53,687.50 | |
Total | 363809.642585797 | 369519.388790999 | 372374.2618936 | 378321.706729603 | 1484025 | |
Cash Disbursement-Same Quarter | 272857.231939348 | 277139.541593249 | 279280.6964202 | 283741.280047203 | ||
Cash Disbursement-Following Quarter | 15740 | 68214.307984837 | 69284.8853983124 | 69820.17410505 | $21,037.50 | |
Total Disbursement for S&A | $288,597.23 | $345,353.85 | $348,565.58 | $353,561.45 | ||
Cash Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Total | ||
Opening | $25,000.00 | $385,661.66 | $499,747.38 | $618,200.09 | $25,000.00 | |
Reciepts | $1,020,312.50 | $1,460,218.75 | $1,868,406.25 | $1,896,371.25 | $6,245,308.75 | |
Disbursement for direct material | $1,454,724.02 | $1,249,202.07 | $1,264,351.56 | $1,282,060.65 | $5,250,338.29 | |
Direct Labour Budget | $197,184.16 | $203,353.68 | $205,282.56 | $208,380.25 | $814,200.65 | |
Total Cash Disbursement for OH | $314,340.04 | $327,980.54 | $332,585.96 | $398,293.46 | $1,373,200.00 | |
Total Disbursement for S&A | $288,597.23 | $345,353.85 | $348,565.58 | $353,561.45 | $1,336,078.12 | |
Principal Payment of debt | $15,000.00 | $15,000.00 | $15,000.00 | $15,000.00 | $60,000.00 | |
Interest Payment of debt | $5,400.00 | $5,062.50 | $4,725.00 | $4,387.50 | $19,575.00 | |
Payment For Land | $250,000.00 | $250,000.00 | ||||
Interest on Borrwing | $58,275.00 | $90,037.50 | $118,387.50 | $266,700.00 | ||
Tax | $49,405.39 | $49,405.39 | $49,405.39 | $49,405.39 | $197,621.56 | |
Closing Cash before borrowing | $-1,279,338.34 | $-407,752.62 | $-191,799.91 | $85,095.13 | ||
Borrowing | $1,665,000.00 | $907,500.00 | $810,000.00 | $655,000.00 | $4,037,500.00 | |
Closing Cash | $385,661.66 | $499,747.38 | $618,200.09 | $740,095.13 | $740,095.13 | $0.00 |
Cost Of goods Manufactured Budget | ||||||
Total | ||||||
Direct Material | $2,925,378.23 | |||||
Direct Labour | $814,200.65 | |||||
Overhead | $1,373,200.00 | |||||
Total | $5,112,778.87 | |||||
Cost of Goods Sold Budget | ||||||
Cost of Goods Manufactured | $5,112,778.87 | |||||
Selling and Admin Oh | $1,484,025.00 | |||||
Total | $6,596,803.87 | |||||
Proforma Income statement | ||||||
Revenue | $7,732,625.00 | |||||
COGS | $5,112,778.87 | |||||
Gross Profit | $2,619,846.13 | |||||
Selling and Admin | $1,484,025.00 | |||||
Bad Debt | $231,978.75 | |||||
Profit Before interest and Tax | $903,842.38 | |||||
Interest | $286,275.00 | |||||
Profit Before Tax | $617,567.38 | |||||
Tax | $197,621.56 | |||||
Profit After Tax | $419,945.82 | |||||
Proforma Balance sheet | ||||||
Current Assets: | ||||||
Cash | $740,095.13 | |||||
Accounts Receivable(net) | $460,473.75 | |||||
Raw Material Inventory | $28,444.81 | |||||
Finished goods inventory | $48,162.11 | |||||
Total Current Assets | $1,277,175.79 | |||||
Long-term assets | ||||||
Buildings and equipment | $2,280,000.00 | |||||
Accumulated depreciation | $419,200.00 | $1,860,800.00 | ||||
Total Assets | $3,137,975.79 | |||||
Current Liabilities: | ||||||
Accounts payable | $142,451.18 | |||||
Commissions payable | $21,037.50 | |||||
Short Term Debt | $737,836.29 | |||||
Total Current Liabilities | $901,324.97 | |||||
Long-term debt | 180000 | |||||
Total liabilities | $1,081,324.97 | |||||
Shareholders’ Equity | ||||||
Capital stock | 1299000 | |||||
Retained earnings | $757,650.82 | $2,056,650.82 | ||||
Total Liabilities and Shareholders’ Equity | $3,137,975.79 |
Both Chang
Sales Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Total | ||
Budgted Units-canoes | 3128.25 | 3147.65 | 3157.35 | 3201 | 12,634 | |
Budgeted Units-Kayak | 1,940 | 2,037 | 2,086 | 2,134 | 8,197 | |
Budgeted selling price/ unit | ||||||
canoes | $425.00 | |||||
Kayak | $260.00 | |||||
Budgeted sales | ||||||
canoes | $1,462,456.88 | $1,471,526.38 | $1,476,061.13 | $1,496,467.50 | $5,906,511.88 | |
Kayak | $554,840.00 | $582,582.00 | $596,453.00 | $610,324.00 | $2,344,199.00 | |
Total | $2,017,296.88 | $2,054,108.38 | $2,072,514.13 | $2,106,791.50 | $8,250,710.88 | |
Schedule of Reciepts | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Closing | ||
sales collected in quarter of the sales | $1,613,837.50 | $1,643,286.70 | $1,658,011.30 | $1,685,433.20 | ||
sales collected in following quarter | 75000 | $327,594.53 | $308,116.26 | $310,877.12 | $421,358.30 | |
sales collected in the second quarter following | ||||||
bad debt | $100,864.84 | $102,705.42 | $103,625.71 | $105,339.58 | ||
Total Reciepts | $1,688,837.50 | $1,970,881.23 | $1,966,127.56 | $1,996,310.32 | $7,622,156.61 | $421,358.30 |
Production Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Sales Q-1 2020 | Closing | |
Opening | ||||||
canoes | 160 | 125.906 | 126.294 | 128.04 | 129.01 | |
Kayak | 120 | 81.48 | 83.42 | 85.36 | 86.33 | |
Budgted Sales unit | ||||||
canoes | 3128.25 | 3147.65 | 3157.35 | 3201 | 3225.25 | 3350 |
Kayak | 1940 | 2037 | 2085.5 | 2134 | 2158.25 | 2250 |
Budgted Closing stock | ||||||
canoes | 125.906 | 126.294 | 128.04 | 129.01 | 134 | 215.34 |
Kayak | 81.48 | 83.42 | 85.36 | 86.33 | 90 | |
Budgeted Production | ||||||
canoes | 3094.156 | 3148.038 | 3159.096 | 3201.97 | 3230.24 | 12603.26 |
Kayak | 1901.48 | 2038.94 | 2087.44 | 2134.97 | 2161.92 | 8162.83 |
20766.09 | ||||||
Direct Material Purchased Budget | Closing | |||||
Budgeted Production | Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Sales Q-1 2020 | |
canoes | 3094.156 | 3148.038 | 3159.096 | 3201.97 | 3230.24 | |
Opening | ||||||
Polyurethane: | 400 | 1101.8133 | 1105.6836 | 1120.6895 | ||
Styrofoam: | 600 | 1101.8133 | 1105.6836 | 1120.6895 | ||
Production | ||||||
Polyurethane: | 14542.5332 | 14795.7786 | 14847.7512 | 15049.259 | ||
Styrofoam: | 23515.5856 | 23925.0888 | 24009.1296 | 24334.972 | ||
Closing | ||||||
Polyurethane: | 94.44114 | 94.77288 | 96.0591 | 96.9072 | 1579.58736 | |
Styrofoam: | 94.44114 | 94.77288 | 96.0591 | 96.9072 | 625.05144 | |
Direct Material Required | ||||||
Canoes | ||||||
Polyurethane: | 14236.97434 | 13788.73818 | 13838.1267 | 14025.4767 | ||
Styrofoam: | 23010.02674 | 22918.04838 | 22999.5051 | 23311.1897 | ||
Kayak | 2510 | 2115 | 2165 | 2207.5 | 2161.92 | |
Opening | ||||||
Polypropylene: | 200 | 528.75 | 541.25 | 551.875 | ||
Fiberglass gel-coated: | 350 | 423 | 433 | 441.5 | ||
Production | ||||||
Polypropylene: | 6024 | 5076 | 5196 | 5298 | ||
Fiberglass gel-coated: | 12550 | 10575 | 10825 | 11037.5 | ||
Closing | ||||||
Polypropylene: | 63.45 | 64.95 | 66.225 | 64.8576 | 1653.8688 | |
Fiberglass gel-coated: | 63.45 | 64.95 | 66.225 | 64.8576 | 1070.1504 | |
Direct Material Required | 4928.658 | |||||
Kayak | ||||||
Polypropylene: | 5887.45 | 4612.2 | 4720.975 | 4810.9826 | ||
Fiberglass gel-coated: | 12263.45 | 10216.95 | 10458.225 | 10660.8576 | ||
Schedule of disbursement | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | |||
Polyurethane: | 14236.97434 | 13788.73818 | 13838.1267 | 14025.4767 | ||
Styrofoam: | 23010.02674 | 22918.04838 | 22999.5051 | 23311.1897 | ||
Polypropylene: | 5887.45 | 4612.2 | 4720.975 | 4810.9826 | ||
Fiberglass gel-coated: | 12263.45 | 10216.95 | 10458.225 | 10660.8576 | ||
Money Required for Direct Material | $732,954.25 | $658,768.62 | $666,853.85 | $677,556.65 | ||
Disbursement in Same quarter | $586,363.40 | $527,014.90 | $533,483.08 | $542,045.32 | ||
Disbursement in following quarter | $146,590.85 | $131,753.72 | $133,370.77 | $135,511.33 | ||
Disbursement of last Year | $70,000.00 | |||||
Total | $1,389,317.66 | $1,185,783.51 | $1,200,336.93 | $1,219,601.97 | ||
Direct Labour Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | |||
canoes | 3094.156 | 3148.038 | 3159.096 | 3201.97 | ||
Kayak | 1901.48 | 2038.94 | 2087.44 | 2134.97 | ||
Direct Labour Hours | ||||||
canoes | 8044.8056 | 8184.8988 | 8213.6496 | 8325.122 | ||
Kayak | 2852.22 | 3058.41 | 3131.16 | 3202.455 | ||
Direct Labour Hours Required | 10897.0256 | 11243.3088 | 11344.8096 | 11527.577 | ||
Direct Labour Budget | $190,953.88 | $197,253.07 | $199,124.08 | $202,373.72 | ||
Overhead Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Total | ||
Variable Overhead | ||||||
Canoe | $61,376.10 | $62,444.92 | $62,664.26 | $63,514.72 | $250,000.00 | |
Kayak | $56,605.32 | $60,697.38 | $62,141.18 | $63,556.11 | $243,000.00 | |
Fixed Overhead | ||||||
Canoe | $101,442.43 | $103,208.96 | $103,571.49 | $104,977.13 | $413,200.00 | |
Kayak-Machine Hours | 4943.848 | 5301.244 | 5427.344 | 5550.922 | ||
Kayak | $108,784.72 | $116,648.88 | $119,423.59 | $122,142.81 | $467,000.00 | |
Total Overhead | $328,208.57 | $343,000.13 | $347,800.53 | $354,190.76 | $1,373,200.00 | |
Cash Disbursement | ||||||
Property Tax-Canoe | -7856 | -7993 | -8021 | -8130 | ||
Property Tax-Kayak | -6522 | -6994 | -7160 | -7323 | ||
Property Tax | 60000 | |||||
Total Cash Disbursement for OH | $313,830.01 | $328,013.25 | $332,619.21 | $398,737.54 | $1,373,200.00 | |
Selling and Administrative Overhead Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Total | ||
Total S&A | 268509.642585797 | 273409.388790999 | 275859.2618936 | 280421.706729603 | 1098200 | |
Commission | $87,747.41 | $88,291.58 | $88,563.67 | $89,788.05 | $354,390.71 | |
Variable Admin Cost | 12670.625 | 12961.625 | 13107.125 | 13337.5 | $52,076.88 | |
Total | 368927.680085797 | 374662.596290999 | 377530.0543936 | 383547.256729604 | 1504667.5875 | |
Cash Disbursement-Same Quarter | 276695.760064348 | 280996.947218249 | 283147.5407952 | 287660.442547203 | ||
Cash Disbursement-Following Quarter | 15740 | 69173.940016087 | 70249.2368045624 | 70786.8851988 | $22,447.01 | |
Total Disbursement for S&A | $292,435.76 | $350,170.89 | $353,396.78 | $358,447.33 | ||
Cash Budget | ||||||
Quarter-1 | Quarter-2 | Quarter-3 | Quarter-4 | Total | ||
Opening | $25,000.00 | $66,750.91 | $104,324.64 | $152,500.92 | $25,000.00 | |
Reciepts | $1,688,837.50 | $1,970,881.23 | $1,966,127.56 | $1,996,310.32 | $7,622,156.61 | |
Disbursement for direct material | $1,389,317.66 | $1,185,783.51 | $1,200,336.93 | $1,219,601.97 | $4,995,040.07 | |
Direct Labour Budget | $190,953.88 | $197,253.07 | $199,124.08 | $202,373.72 | $789,704.75 | |
Total Cash Disbursement for OH | $313,830.01 | $328,013.25 | $332,619.21 | $398,737.54 | $1,373,200.00 | |
Total Disbursement for S&A | $292,435.76 | $350,170.89 | $353,396.78 | $358,447.33 | $1,354,450.75 | |
Principal Payment of debt | $15,000.00 | $15,000.00 | $15,000.00 | $15,000.00 | $60,000.00 | |
Interest Payment of debt | $5,400.00 | $5,062.50 | $4,725.00 | $4,387.50 | $19,575.00 | |
Payment For Land | $250,000.00 | $250,000.00 | ||||
Interest on Borrwing | $21,875.00 | $30,100.00 | $48,737.50 | $100,712.50 | ||
Tax | $65,149.29 | $65,149.29 | $65,149.29 | $65,149.29 | $260,597.15 | |
Closing Cash before borrowing | $-558,249.09 | $-130,675.36 | $-379,999.08 | $-163,623.61 | ||
Borrowing | $625,000.00 | $235,000.00 | $532,500.00 | $357,500.00 | $1,750,000.00 | |
Closing Cash | $66,750.91 | $104,324.64 | $152,500.92 | $193,876.39 | $193,876.39 | $-0.00 |
Cost Of goods Manufactured Budget | ||||||
Total | ||||||
Direct Material | $2,876,288.30 | |||||
Direct Labour | $789,704.75 | |||||
Overhead | $1,373,200.00 | |||||
Total | $5,039,193.05 | |||||
Cost of Goods Sold Budget | ||||||
Cost of Goods Manufactured | $5,039,193.05 | |||||
Selling and Admin Oh | $1,504,667.59 | |||||
Total | $6,543,860.64 | |||||
Proforma Income statement | ||||||
Revenue | $7,709,808.48 | |||||
COGS | $5,039,193.05 | |||||
Gross Profit | $2,670,615.42 | |||||
Selling and Admin | $1,504,667.59 | |||||
Bad Debt | $231,294.25 | |||||
Profit Before interest and Tax | $934,653.58 | |||||
Interest | $120,287.50 | |||||
Profit Before Tax | $814,366.08 | |||||
Tax | $260,597.15 | |||||
Profit After Tax | $553,768.94 | |||||
Proforma Balance sheet | ||||||
Current Assets: | ||||||
Cash | $193,876.39 | |||||
Accounts Receivable(net) | $421,358.30 | |||||
Raw Material Inventory | $4,928.66 | |||||
Finished goods inventory | $47,468.93 | |||||
Total Current Assets | $667,632.28 | |||||
Long-term assets | ||||||
Buildings and equipment | $2,280,000.00 | |||||
Accumulated depreciation | $419,200.00 | $1,860,800.00 | ||||
Total Assets | $2,528,432.28 | |||||
Current Liabilities: | ||||||
Accounts payable | $135,511.33 | |||||
Commissions payable | $22,447.01 | |||||
Total Current Liabilities | $157,958.34 | |||||
Long-term debt | $180,000.00 | |||||
Total liabilities | $337,958.34 | |||||
Shareholders’ Equity | ||||||
Capital stock | $1,299,000.00 | |||||
Retained earnings | $891,473.94 | $2,190,473.94 | ||||
Total Liabilities and Shareholders’ Equity | $2,528,432.28 |
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