Question

any help with this is apprieciated.

Spilde Pharmaceuticals manufactures an academic steroid (ACTC) known to improve the brain function in MBA students. The drug is believed to be an effective treatment for students challenged by Module 2 content. Sponsler Pharmaceuticals' pro forma balance sheet for the year ending December 31, 2019, is presented below. Spilde Pharmaceuticals Balance Sheet Year Ending December 31, 2019 Cash Short-term Investments Accounts Receivable *Raw Materials Inventory "Finished Goods Inven. Equipment Accumulated Depreciation Total Assets $11,000 20,000 36,000 2,000 4,248 80,000 (6,000) $147.248 Accounts Payable Long-term Debt Total Liabilities Common Stock - $10 par Additional Paid-in Capital Retained Earnings Total Shareholders' Equity Total Liabilities & SE $3,600 50.000 $53.600 $35,000 25,000 33.648 93,648 S147.248 *Note: Raw Materials Inventory consists of 500-Ibs. at $4 per lb., and Finished Goods Inventory consists of 1,200 bottles at an average cost of $3.54 per bottle. You are required to prepare a 2020 master budget for Spilde Pharmaceuticals. THIS

Answer 1

Answer with full working is given below

1 Sales Budget Quarter II 9,000 $10.00 Full year Quarter II Quarter Quarter IV Budgeted Sales units Selling price per unit Budgeted Sales 43,000 10,000 12,000 12,000 $10.00 $120,000 $10.00 $10.00 $10.00 $90,000 $100,000 $120,000 $430,000 Schedule of Cash collected from Customers Full year Quarter I Quarter Quarter lIl Quarter IV Collection from Customers $32,000 $78,000 $65,000 $97,000 $116,400 $87,300 $78,000 $36,000 Quarter I $38,400 $58,500 Quarter I $28,800 $78,000 Quarter II Quarter IV $36,000 $101,000 $3,000 Opening Accounts Receivable $106,800 $3,600 $110,000 $3,600 $414,700 $12,900 $96,900 $2,700 Cash received from Debtors Bad Debts 2 Production Budget- Units 2021 Quarter I Full year 43,000 Quarter Il 9,000 Quarter Quarter IV Quarter Budgeted Unit sales Add: Desired Closing inventory Total Needs Less Opening Stock 12,000 10,000 12,000 10,000 1,800 2,400 2,400 2,000 2,000 2,800 12,400 1,200 13,800 11,400 45,000 1,200 12,800 14,000 2,400 2,400 2,000 1,800 Budgeted Production (Units) 11,400 9,600 11,600 43,800 10,800 11,200 3 Direct Material Purchase Budget Quarter I 0.20 2,280 Full year Quarter III Quarter Quarter IV Material units per bottle Units needed for production Add: Desired Closing inventory 0.20 0.20 0.20 0.20 8,760 2,240 912 1,920 2,320 768 432 928 432 Total Needs 3,048 2,848 3,152 2,752 9,192 928 500 Less Opening Stock 500 912 768 2,652 2,136 $4 $8,544 2,080 Total Purchase Budget (Units) 1,824 8,692 $4 $8,320 Purchase Price per unit Purchase value budget $4 $4 $4 $10,608 $34,768 $7,296 Schedule of Cash payment for purchases Quarter I Quarter I Full year Quarter Quarter IV $10,608 $7,296 $34,768 Purchases Payment Quarter I purchase Quarter ll purchase Quarter ll purchase Quarter IV purchase Opening Accounts Payable balance $8,320 $8,544 $8,486 $2,122 $6,835 $10,608 $8,544 $8,320 $5,837 $3,600 $36,909 $1,709 $6,656 $1,664 $5,837 $3,600 $12,086 $8,957 Total payment for purchases $8,365 $7,501 4 Direct Labor Budget Quarter I 11,400 Quarter l Full year Quarter Quarter IV Production units 11,200 9,600 0.10 11,600 43,800 0.10 0.10 Direct labor hour per unit Total Direct labor hours DL rate per hour Total Direct Labor cost Budget 0.10 0.10 1,120 1,140 960 4,380 $20.00 $87,600 1,160 $20.00 $22,400 $20.00 $22,800 $20.00 $19,200 $20.00 $23,200 5 Manufacturing Overhead budget Quarter I 1,140 Full year Quarter Quarter IV Quarter III Direct Labor hours 960 1,160 1,120 4,380 Indirect Materials $1,680 $1,344 $448 $336 $3,808 $1,710 $1,368 $456 $342 $3,876 $1,050 $3,330 $8,256 $1,440 $1,740 $6,570 $5,256 Indirect Labor $1,152 $1,392 $384 $288 $3,264 $1,050 $3,330 $7,644 $464 $348 $1,752 Utilities $1,314 $14,892 $4,200 $13,320 $32,412 Maintenance Total Variable Overhead Property taxes $3,944 $1,050 $3,330 $8,324 $1,050 $3,330 $8,188 Depreciation Total Manufacturing overhead budget 6 Selling and Administration Expense Budget Quarter I Quarter lII Full year Quarter Quarter IV Variable Selling Expense $12,000 $4,000 $14,400 $10,800 $3,600 $14,400 $51,600 $17,200 Commission Freight out Fixed Selling expenses Advertising Sales Salaries Office Salaries Depreciation $4,800 $4,800 $1,500 $8,000 $3,500 $1,000 $1,750 $34,950 $1,500 $8,000 $3,500 $1,000 $1,750 $31,750 $6,000 $32,000 $14,000 $4,000 $7,000 $131,800 $1,500 $8,000 $3,500 $1,000 $1,500 $8,000 $3,500 $1,000 $1,750 $30,150 $1,750 $34.950 Insurance Total Selling and administration Expense Budget 7 Cost of Goods Sold Budget Opening stock Direct Material consumed Direct Labor used $4,248 $35,040 $87,600 $32,412 Manufacturing Overhead Cost of Goods available for sale $155,052 $159,300 $7,080 $152,220 Less: Ending Finished Goods inventory Budgeted Cost of Goods Sold 8 Cash Budget Quarter I Total Quarter Quarter III Quarter IV $27,906 $53,273 $11,000 $11,000 $20,144 Beginning balance Collections Credit sales $65,000 $36,000 $78,000 $32,000 $58,500 $38,400 $150,173 $279,500 $135,200 $425,700 Current Quarter $78,000 $28,800 Prior Quarter $112,000 $137,906 $126,944 Cash available for disbursement Cash disbursements Direct Material $8,486 $3,600 $22,400 $4,858 $30,750 Current Quarter $6,835 $2,122 $6,656 $1,709 $27,814 $5,837 $1,664 $23,200 $4,994 $33,950 $9,094 $87,600 Prior Quarter $22,800 $4,926 $33,950 $19,200 $4,314 $29,150 $50,000 $12,000 $2,000 $15,000 $140,029 $10,144 Direct Labor Manufacturing overhead Selling and administration expenses Equipment purchase $19,092 $127,800 $50,000 $48,000 $8,000 $15,000 $12,000 $12,000 $12,000 Income taxes Interest on long term debt Dividends $2,000 $2,000 $2,000 Cash paid for disbursements Preliminary cash balance Financing Borrowing Loan repaid $84,094 $27,906 $392,401 $33,299 $84,633 $83,645 $43,299 $53,273 $10,000 $10,000 -$10,000 -$600 -$600 -$10,000 -$600 -$10,600 Interest on Borrowing ( 6% per Quarter) $10,000 $20,144 $0 $0 $27,906 $53,273 Ending cash balance $32,699 Spilde Pharmaceuticals 9 Budgeted Income Statement For the Year Ended December 31,2020 Sales $430,000 Less: Cost of Goods sold Cost of Goods sold Gross Profit $152,220 $277,780 Less: Operating Expenses Selling and administration expenses Bad Debts Interest on long term debt Interest on short term borrowing Operating Income Non operating expenses Loss on short term investment Profit before tax $131,800 $12,900 $8,000 $600 $124,480 $20,000 $104,480 $48,000 $56,480 Income taxes Profit After tax

Spilde Pharmaceuticals 10 Budgeted Balance Sheet For the Year Ended December 31, 2020 Cash Accounts Receivable Inventory Raw materials Finished goods Equipment Purchase Accumulated Depreciation $1,459 $50,000 $51,459 $35,000 $25,000 $75,128 $32,699 Accounts payable $38,400 Long term Debt Total Liabilities $1,728 Common stock $7,080 Additional paid in capital $80,000 Retained Earnings $50,000 -$23,320 $186,587 $186,587

Budgeted Statement of Retained Earnings Retained earnings Add: Net profit Less: Dividend paid Closing balance of Retained earnings $33,648 $56,480 -$15,000 $75,128 Accounts receivable closing balance Opening Balance Add Sales Less: Bad Debts Less: Collection Closing Balance $36,000 $430,000 -$12,900 -$414,700 $38,400 Accounts payable closing balance Opening Balance Add: Purchases Less : Payment Closing Balance $3,600 $34,768 -$36,909 $1,459