Question

Use all available data (Assumptions Row4- Row 52, Balance Sheet for 2016, previous solutions) Answer format also included.

Assumptions Endless Mountain Company manufactures a single product that is popular with oudere recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2017. The company's CFO in consultation with various managers across the company is providing the latest Balance Sheet and a set of assumptions to help create the 2017 budgets Budgeted Unt Sales Q1 2017 OR 2017 03 2017 04 2017 Q1 2018 12.000 37 000 15.000 13.000 Budgeted Selling Priceperunt All sales are credit sales Ignore Uncollectible Accounts. They are minimal Percentage of Sales collected in the quarter of the sale Percentage of Sales collected in the subsequent quarter 75% 15% Quarter ending finished goods inventory as a percent of next quarter's unit sales Yards of raw material required for each unit Cost per yard of raw material Quarter ending raw materials wentary as a percent of next Quarter's production needs Estimated ending raw materials inventary on December 31, 2017 in yards Percent of purchases paid for in the quarter of the purchase Percent of purchases paid for in the quarter following the purchase 300 10% 5.000 7046 30% OD Direct labor hourly rate Direct labor hours roured to finish each unit of finished goods Direct labor hours are paid in the quarter incurred Budgeted variable manufacturing overhead per direct labor-hour Quarterly feed manufacturing overhead including depreciation expense on equipment Quarterly depreciation an equpmert The number of direct labor hours is used as the allocation base for the budgeted plantwide overhead rate Al overhead costs (excluding depreciation are paid in the quart incurred $ $ 3.00 150 000 20.000 The budgeted variable selling and administrative expense per unit sold Fixed seling and administrative expenses Advertising Executive Salaries Insurance Property to Deprecation expenseseling and administrative) Al Selling and administrative penses excluding depreciation are pad in the quarter incurred $ $ $ $ $ 25,000 40 12.000 8.000 8.000 $ 30,000 Minimum cash bwance the end of each quarter Anybomowing takes place on the day of the quarter To the extent possible the company will pay principal and verstonary bomwings on the last day of the fourth Quarter The company's lendem m e versteuronany boming at a rate of Dins deed and pardin each quarter $ 15.000 the Tes t The company uses a UFO inventory w sumbon This means that the most recent purchased among production and the most recent computershed the tour to customers

1. Create a CASH BUDGET for the year ended December 31, 2017.

Answer 1

1. Endless Mountain (o. O Cash Budget. u for the year ended 12/31/17 Quarter ' III 21 34 Year || Beg Cash balance 146,200 130.000 /280,368 363,650 96,200 (+) Cash receipt Collection from Cust.1548000/984000|656000 720000 29,08,000 Total Cash avaikble 594,200 10,14,000 936,3681083,650 225 AM END - Cash disbed 29,54,200 D. Mat 1291,287/292,176/226,937/218,053/1028,453 Il D. labour | 72225151,650 74,250 104,400 402, 525 1 m. oh 142038 155235/142375 linauoo 587088 || Selling & Adm. 1114,016 119,531 1,14,156 116,250 463,953 Dividend | 15000 | 1sovo 15000 15000 | 60,000 Total Cash disb. 1634,566/7,33.632/572,718 601, 103/254 2019 FAO Excess (de focery) (40,366) 280,363.363650 482,547) 412,181 finance: Borrowing 70,366 - - 1 70,366 Repayment - (70,366)|(70.366) Inforest (84441(8444) Endine Cash ( 30.000 280 368 363,650 403737403737 Scanned with CamScanner

11840 I Calculation of expocted Cash collection DI I 82 L 93 L gu Total al sales 288.000 96000 384000 Q2 4 - 1888000 296000 360000 120000 480000 L94." 120000 600000 1600000 (Units x 32) 9, 2016 Sales 260000 260.000 | Totale.com Canscanner 548.000 1984,000 656,000 720,000 29,08, ovo C

ntation 220 Computation I of Production of finished & Goods S L 82 83. I gu year 12000 37000 | 15000 25000 | 89.000 5,550 2250 L 3750 L 1950 13500 (1500)|(5550 (2250) (3750)|(13050) UNTS Todd . Dosired Costock stock I h T len: Beg Stock Toral Production 1 of finised Goods | Goso 133,700 1 16500 123,200 Touca- 11,17,950 157,750 | 81,200 1313,075 Rowo mal.consumed 156, 195 @ 3.5 pu (yarch) in computation of Raw material Purchased . I Get 82 4 83 sur 1 Year R. Mat consume & 156,175 119,950/ 57,750 1.81,200313,075 Add: Dosered CL Stock 11,795 5,775 8,120 | 5000 30,690 | (10% of meal greed) I loss! Beq. Saventery (4500) |(11,795) I (5,795) | (8,120) |(30,190) Row-mat Purchased 163,470 | 111,930 60095 178,080 | 313.575 Cearch) T Raw - mat Purchased 190,410 335.790 180,285 234,240 940,725 $3.901 Scanned we CamScanner

E in Calculation of expected Cash disburrement I I OL 1.93 | 94 Year Qi Pur 133.287 57123- 190410 92 Pur - 235,053 100732 - 335790 126 200 54,085 180.285 Qu Pur 163.968 163.968 158050 15:00) 291,287 292,176 226,937 218,053 40759 3 10 28,453 Cost | Qu 23200 Year 89,450 Calculation of Direct labour |QI I Q2 Q3 Finished Goodal 1605033700 16.500 I produced ID. lab hrs 4012.5 | 8425 / 4125 @ 0.25/unt D.dab lost | 72,225151,650 74,250 @ 848 W 5850 / 22362.5 104,400 402525 og Calculation of Manufacturing L9, L 82 83 allo.lab hry. I 2012.5 | 6425 1 4125 Overhead 84 rear 15800 22362.5 (5) Vor: Mf Olt | 12037.5 | 25.235 | 123.95 | 1nuor | 6708715 La 103315r. 520.000 fined My CH 120000 120.000 igoooo 120 000 upodoo stay at 1320375 +45 295 132375 134470 470,089*, Scan |1420351155275 142375147400582088

Calculation me of selling & Adm. Overhead su L 82 83 on 1 year 1109,000/ 109,000 | 109,000 109,000 436,000 fixed: (2) Vanable : hor. OCH @ 1.25 4012.5 | 8425 | 4125 5016 1 10531 1 5156 Issoo 122362.5. 7250 127,953 / 116,250 /463,953 Total Sell & Adm (114,016 119,531|114,156 solt 2) with CamScanner