SALES BUDGET
FOR THE YEAR ENDING DECEMBER 31, 2012
QUARTER
1 2 3 4
Budgeted sales in cases 10,000 30,000 40,000 20,000 Selling price per case $ 20.00 $ 20.00 $ 20.00 $ 20.00 Total Sales $ 200,000 $ 600,000 $ 800,000 $ 400,000 Precentage of collected in the period of the sales 70%
Precentage of collected in the period after the sales 30% Schedule of Expected Cash collections
$ 90,000 $ 140,000 $ 60,000 $ 420,000 $ 180,000 $ 560,000 $ 240,000 $ 280,000 $ 230,000 $ 480,000 $ 740,000 $ 520,000 Account receivable, beginning balance 1
Q1 sales 2
Q2 sales 3
Q3 sales 4
Q4 sales 5
Total cash collections 6
30 % 70%
SALES BUDGET
FOR THE YEAR ENDING DECEMBER 31, 2012
YEAR
100,000 $ 20.00 $ 2,000,000
Schedule of Expected Cash collections
$ 90,000 $ 200,000 $ 600,000 $ 800,000 $ 280,000 $ 1,970,000
PRODUCTION BUDGET
FOR THE YEAR ENDING DECEMBER 31, 2012
QUARTER
1 2 3 4
Budgeted sales (prev sales budget) 10,000 30,000 40,000 20,000 Add desired ending inventory of finished goods 6,000 8,000 4,000 3,000 Total Needs 16,000 38,000 44,000 23,000 Less Beginning inventory of finished goods 2,000 6,000 8,000 4,000 Required production 14,000 32,000 36,000 19,000
PRODUCTION BUDGET
FOR THE YEAR ENDING DECEMBER 31, 2012
YEAR 100,000 3,000 103,000 2,000 101,000 Assum ed
DIRECT MATERIAL BUDGET
FOR THE YEAR ENDING DECEMBER 31, 2012
QUARTER
1 2 3
Required production in cases 14,000 32,000 36,000 Raw materials needed per case (pounds) 15 15 15 Production needs (pounds) 210,000 480,000 540,000 Add desired ending inventory of raw materials 48,000 54,000 28,500 Total Needs 258,000 534,000 568,500 Less beginning inventory of raw materials 21,000 48,000 54,000 Raw materials to be purchased 237,000 486,000 514,500 Cost of raw material per pounds $ 0.20 $ 0.20 $ 0.20 Cost of raw material to be purchased $ 47,400 $ 97,200 $ 102,900
Precentage of collected in the period of the sales 50%
Precentage of collected in the period after the sales 50%
Schedule of Expected Cash Disbursement of materials $ 25,800
$ 23,700 $ 23,700
$ 48,600 $ 48,600 $ 51,450 $ 49,500 $ 72,300 $ 100,050 Account receivable, beginning balance 2
Q1 sales 3
Q2 sales 4
Q3 sales 5
Q4 sales 5
DIRECT MATERIAL BUDGET
FOR THE YEAR ENDING DECEMBER 31, 2012
QUARTER 4 YEAR 19,000 101,000 15 ### 285,000 1,515,000 22,500 ### 307,500 1,537,500 28,500 21,000 279,000 1,516,500 $ 0.20 ### $ 55,800 $ 303,300
Schedule of Expected Cash Disbursement of materials
$ 25,800 $ 47,400 $ 97,200 $ 51,450 $ 102,900 $ 27,900 $ 27,900 $ 79,350 $ 301,200 Assumed
DIRECT LABOR BUDGET
FOR THE YEAR ENDING DECEMBER 31, 2012
QUARTER
1 2 3
Required production in cases 14,000 32,000 36,000 Direct labor-hours per case 0.40 0.40 0.40 Total direct labor-hours needed 5,600 12,800 14,400 Direct labor cost per hour $ 15.00 $ 15.00 $ 15.00 Total direct labor cost* $ 84,000 $ 192,000 $ 216,000
DIRECT LABOR BUDGET
FOR THE YEAR ENDING DECEMBER 31, 2012
QUARTER 4 YEAR 19,000 101,000 0.40 0.40 7,600 40,400 $ 15.00 $ 15.00 $ 114,000 $ 606,000
MANUFACTURING OVERHEAD BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012
QUARTER
1 2 3
Budgeted direct labor-hours 5,600 12,800 14,400 Variable manufacturing overhead rate $ 4.00 $ 4.00 $ 4.00 Variable manufacturing overhead $ 22,400 $ 51,200 $ 57,600 Fixed manufacturing overhead 60,600 60,600 60,600 Total manufacturing overhead 83,000 111,800 118,200 Less depreciation 15,000 15,000 15,000 Cash disbursements for manufacturing overhead $ 68,000 $ 96,800 $ 103,200 Total manufacturing overhead (a)
Budgeted direct labor-hours (b)
MANUFACTURING OVERHEAD BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012
QUARTER 4 YEAR 7,600 40,400 $ 4.00 ### $ 30,400 $ 161,600 60,600 242,400 91,000 404,000 15,000 60,000 $ 76,000 $ 344,000 $ 404,000 40,400 $ 10.00
ENDING FINISHED GOODS INVENTORY BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012
Item Quantity Cost
Production per case:
Direct materials 15 pounds $ 0.20 per pound
Direct labor 0.4 hours $ 15.00 per hour
Manufacturing overhead 0.4 hours $ 10.00 per hour Unit product cost
Budgeted finished goods inventory: Ending finished goods inventory Unit Product Cost
ENDING FINISHED GOODS INVENTORY BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012
Total $ 3.00 $ 6.00 $ 4.00 $ 13.00 3,000 $ 13.00 $ 39,000.00
SELLING AND ADMINISTRATIVE EXPENSE BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012
QUARTER
1 2 3
Budgeted sales in cases 10,000 30,000 40,000 Variable selling and administrative expense per case $ 1.80 $ 1.80 ### Variable selling and administrative expense $ 18,000 $ 54,000 $ 72,000 Fixed selling and administrative expense:
Advertising 20,000 20,000 ### Executive salaries 55,000 55,000 ###
Insurance 10,000 10,000 ###
Property taxes 4,000 4,000 ### Depreciation 10,000 10,000 ### Total fixed selling and administrative expense 99,000 99,000 99,000 Total selling and administrative expense $ 117,000 $ 153,000 $ 171,000 Less depreciation 10,000 10,000 ### Cash disbursement for selling and administrative expenses $ 107,000 $ 143,000 $ 161,000
SELLING AND ADMINISTRATIVE EXPENSE BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012
QUARTER 4 YEAR 20,000 100,000 $ 1.80 $ 1.80 $ 36,000 $ 180,000 20,000 80,000 55,000 220,000 10,000 40,000 4,000 16,000 10,000 40,000 99,000 396,000 $ 135,000 $ 576,000 10,000 40,000 $ 125,000 $ 536,000
CASH BUDGET
FOR THE YEAR ENDING DECEMBER 31, 2012
TAB QUARTER
1
Cash balance, beginning $ 42,500.00
Add receipts:
Collections from customers Sales budget $ 230,000
Total cash available $ 272,500
Less disbursements:
Direct materials Direct material 49,500
Direct labor Direct labor 84,000
Manufacturing overhead Manufacturing overhead 68,000 Selling and administrative Selling & Admin 107,000
Equipment purchases 50,000
Dividends 8,000
Total Disbursements 366,500
Excess (deficiency) of cash available over disbursements $ (94,000.00) Financing:
Borrowings (at the beginning quarters) $ 130,000.00 Repayments (at the end of the year)
Interest
Total Financing $ 130,000.00
CASH BUDGET
FOR THE YEAR ENDING DECEMBER 31, 2012
QUARTER 2 3 4 YEAR $ 36,000.00 $ 33,900.00 $ 165,650.00 $ 42,500.00 $ 480,000 $ 740,000 $ 520,000 $ 1,970,000 $ 516,000 $ 773,900 $ 685,650 $ 2,012,500 72,300 100,050 79,350 301,200 192,000 216,000 114,000 606,000 96,800 103,200 76,000 344,000 143,000 161,000 125,000 536,000 40,000 20,000 20,000 130,000 8,000 ### 8,000 32,000 552,100 608,250 422,350 1,949,200 $ (36,100.00) $ 165,650.00 $ 263,300.00 $ 63,300.00 $ 70,000.00 $ 200,000.00 $ (200,000.00) ### $ (21,900.00) $ (21,900.00) $ 70,000.00 $ - $ (221,900.00) $ (21,900.00) $ 33,900.00 $ 165,650.00 $ 41,400.00 $ 41,400.00
BUDGETED INCOME STATEMENT
FOR THE YEAR ENDING DECEMBER 31, 2012
Sales See Sales tab 2,000,000 Cost of goods sold See sales & Ending inventory 1,300,000 Gross margin 700,000 Selling and administrative expenses See selling & Admin 576,000 Net operating income 124,000 interest expense See cash 21,900
BUDGETED BALANCE SHEET
FOR THE YEAR ENDING DECEMBER 31, 2012 Assets
Current assets:
Cash $ 41,400.00 Account receivable $ 120,000.00 Raw materials inventory $ 4,500.00 Finished goods inventory $ 39,000.00
Total current assets $ 204,900.00
Plant and equipment:
Land $ 80,000.00 Buildings and equipment $ 830,000.00 Accumulated depreciation $ (392,000.00)
Plant and equipment, net $ 518,000.00
Total Assets $ 722,900.00
Liabilities and Stockholder's equity Current liabilities:
Account payable (raw materials) $ 27,900.00 Stockholder's equity:
Common stock $ 175,000.00 Retained earnings $ 519,100.00
Total Stockholder's equity $ 695,000.00
balanced sheet 2011 + total additional equipment on cash budget balanced sheet 2011 + MO + Selling & Admin
