corrected Project 285

corrected Project 285 - Budget Case Input Section: Sales...

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Budget Case Input Section: Sales Sales in Units 200 400 300 150 300 Selling price per unit $1,000.00 Collections: Quarter of sale 80% Quarter after sale 20% Accounts receivable, December 31 $20,000 Finished Goods Inventory: Ending inventory requirement 10% of next quarter's sales Beginning inventory 20 units Raw materials Inventory: Cost per unit $500.00 per unit Ending inventory requirement 10% of next quarter's production needs Paid in quarter of purchase 70% Paid in following quarter 30% Accounts payable - December 31 $15,450 Direct labor: Required per Cart 3 hours Cost per hour $24.00 per hour Manfacturing Overhead: Variable $9.00 per Direct Labor hour Fixed $40,000 per quarter Noncash fixed (included in above) $10,000 per quarter Selling Expenses: Variable $50.00 per unit sold Fixed $45,000 per quarter Noncash fixed (included in above) $5,000 per quarter Cash: Beginning balance $40,000 Minimum cash balance $30,000 Borrowing rate 12% Borrowing at beginning of quarter Repay at end of quarter Other: Dividends $15,000 Declared every December (Paid in January) Equipment purchase $44,000 Equipment purchase $26,000 1 st Qtr 2 nd Qtr 3 rd Qtr 4 th Qtr 1 st Qtr in June (2 nd Quarter) in July (3 rd Quarter)
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Balance Sheet As of December 31, 2010 Assets Liabilities and Equities 500 Cash $40,000 Accounts payable $15,450 Accounts Receivable $20,000 Notes Payable $0 Raw materials inventory $11,000 Interest payable
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corrected Project 285 - Budget Case Input Section: Sales...

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