This problem has multiple parts, but they all are related.Many requiered budgets needed (see bottom), just help me with what you can! If you cannot do some or it is too time- consuming then I really appreciate all the information given!
GIVEN Information:
1. Balance Sheet:
ASSETS
Cash - 22000
Acct Rec. - 9000
Inventory Raw Materials - 350
Finished Goods Inventory - 4950
Land - 8000
Buildings/Equip - 70000
Accumulated Depreciation - (29200)
Total Assets : 85100
LIABILITIES
Acct Payable - 2580
Capital Stock - 17500
Retained Earnings - 65020
Total Liabilitis and Stakeholder - 85100
2. ADDITIONAL INFORMATION :
a. Budgeted/Expected Sales, 2004/2005:
Quarter 1 - 4000
Quarter 2 - 6400
Quarter 3 - 4800
Quarter 4 - 3800
Quarter 1 (2005) - 4000
Quarter 2(2005) - 2200
b. Company sells all merch on credit. Company recieves 70% of each quarter sales during the quarter and rest (30%) in following quarter.
c. Company plans to stock ending inventory of finished goods to equal 20% of next quarter's sales. Finished Goods inventory at 1/1/2004 is 300 units at 16.5 $/unit.
d. The units require two types of material, cemest and plaster. Each unit requires 5 pounds of cement at 0.7 $/lb. Each unit requires 5 pounds of plaster at 0.4 $/lb.
e. As of 12/31/2003 the Company has 500 lb cement ready but no plaster. Company plans to keep 35% of cement and plaster required for next quarter;s production in inventory at the end of each quarter.
f. The Company pays for all purchases 50% during month of purchase, latter 50% during next month following purchase.
g. Each unit requires 0.7 hours of direct labor at 8.75 $/hr. Employees are paid on the last day of each month for that month's work. Other costs are paid within the quarter incurred unless otherwise noted.
h. Variable overhead is estimated at 2.00 $/DLH. Fixed overhead costs are 34000 $/yr. Fixed OH includes deprecition of $8000/yr.
i. Variable selling and admin costs are at 2.15 $/unit. Fixed selling and admin costs are 38000 $/yr. Fixed SGA costs include depreciation of $3000/yr.
j. Company makes quarterly income tax payments of $2000 each. The corporate income tax rate is 30% net income before taxes ( consider any overpayments on your balance sheet).
k. Company pays quarterly dividends of $2000.
l. Company will purchase additional equipment using cash on the following schedule (depreciation already included about):
Q1: $3500
Q2: $3200
Q3/Q4: None
m. Compnay has to maintain minimun cash balance of $4000. All borrowings are made at end of quarter and paid back at end of first quarter with the cash surplus to make debt payments.
n. All borrowings are made in $1000 increments. Interest is paid at the time of repayment and is cal;culated at 10%/yr (no compunding).
REQUIRED (choose one or two)
Sales Budget, Cash Reciepts, Production Budget (in units), Direct Materials Purchases, Cash Purchases Budget, Direct Labor Budget, Overhead Budget, Selling and Admin Expence Budget, Ending Finished Goods, Budgeted Cost of Goods SOld, Cash Budget, Budgeted Income Statement, Budgeted Statement of Retained Earnings, Budgeted Balance Sheet.