145450 163450 127450 Less Depreciation expense 2000 2000 2000 2000 Less

145450 163450 127450 less depreciation expense 2000

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145,450 163,450 127,450 Less : Depreciation expense 2,000 2,000 2,000 2,000 Less: Insurance expense 9,912 9,912 9,912 9,912 Add: Insurance payments - 1,900 37,748 - Less: Property taxes expense 4,538 4,538 4,538 4,538 Add: Property taxes payments - - - 18,152 Cash Disbursements for Selling & Administrative Expenses $ 93,000 $ 130,900 $ 184,748 $ 129,152 Correct Correct Correct Correct
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Page ] of 107 Harrigan Freeze Inc Cash Budget December 31, 2012 Quarter First Second Third Fourth Beginning Balance $ 42,500 $ 38,494 $ 37,719 $ 37,719 ADD: Collections 230,000 480,000 740,000 520,000 Cash Available 272,500 518,494 777,719 557,719 LESS: Cash Disbursements Direct Material purchases 49,500 72,300 100,050 79,500 Direct Labour 84,000 192,000 216,000 114,000 Manufacturing Overhead 68,000 96,800 103,200 76,000 Selling & Administrative expenses 93,000 130,900 184,748 129,152 Income taxes 11,000 11,000 11,000 11,150 Equipment Purchases 30,000 20,000 - - Dividends 17,500 17,500 17,500 17,500 Total Disbursements 353,000 540,500 632,498 427,302 Cash Excess (Deficiency) (80,500) (22,006) 145,221 130,417 Financing: ADD: Borrowings 120,500 62,006 - - LESS: Repayments - - 105,221 77,286 LESS: Interest payments on bank loan 1,506 2,281 2,281 966 118,994 59,725 (107,502) (78,252) Ending Cash Balance $ 38,494 $ 37,719 $ 37,719 $ 52,165 Correct Correct Correct Correct Bank Line of Credit Balance (beginning of period) $ 120,500 $ 182,506 $ 182,506 $ 77,286 Correct Correct Correct Correct Bank Line of Credit Balance (end of period) $ - $ 120,500 $ 182,506 $ 77,286 $ - Correct Correct Correct Correct Correct Harrigan Freeze Inc Budgeted Income Statement For the year ending December 31, 2012 Quarter First Second Third Fourth Sales $ 200,000 $ 600,000 $ 800,000 $ 400,000 Less: Cost of Goods Sold 130,000 390,000 520,000 260,000 Gross Margin 70,000 210,000 280,000 140,000 Selling & Administrative expenses 109,450 145,450 163,450 127,450 Operating Income (39,450) 64,550 116,550 12,550 Interest expense 1,506 2,281 2,281 966 Net income before income taxes (40,956) 62,269 114,269 11,584 Income tax expense (refund) (12,287) 18,681 34,281 3,475 Net income (loss) $ (28,669) $ 43,588 $ 79,988 $ 8,109 Correct Correct Correct Correct Harrigan Freeze Inc Budgeted Balance Sheet As at December 31, 2012 Assets Liabilities & Shareholders Equity Current Assets Current Liabilities Cash $ 52,165 Correct Accounts Payable Accounts Receivable 120,000 Correct Income Taxes Payable Direct Materials Inventory 4,800 Correct Bank Loan Payable Finished Goods Inventory 39,000 Correct Total Current Assets 215,965 Correct Land, buildings and equipment Shareholders' Equity Land 80,000 Correct Shareholders' Equity Buildings and equipment $ 750,000 Common shares Less: Accumulated Depreciation 360,000 390,000 Correct Retained Earnings Total land, buildings and equipment 470,000 Correct Total shareholders' equity Total Assets $ 685,965 Correct Total liabilities and shareholders' equity Building opening+ asset purchases budgeted - budget disposal of asset Accumulated depreciation = opening+depreciation in the MOH + depreciation in the selling and admin
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Page ] of 107 Budgetary Planning & Analysis:
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