solve the income statement to balance Master Budget Case McGraw-Hill Ltd. 2020 Data for: CamDrone Product: camera
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solve the income statement to balance
Master Budget Case | ||||||||
McGraw-Hill Ltd. 2020 | ||||||||
Data for: | CamDrone | |||||||
Product: | camera drones | |||||||
For the year ended | ||||||||
Fiscal Year End: | December 31 | |||||||
Prior Year: | 2018 | |||||||
Current Year: | 2019 | |||||||
Upcoming Year (for Budget): | 2020 | |||||||
Subsequent Year: | 2021 | |||||||
DATA | ||||||||
Projected Balance Sheet | ||||||||
@ | December 31 | |||||||
2019 | ||||||||
Assets | ||||||||
Cash | 100,000 | |||||||
Accounts Receivable | 1,098,899 | |||||||
Inventory: Direct Materials | 3,591 | $3,591 | ||||||
Inventory: Finished Goods | 11,640 | |||||||
Prepaid Property and Business Taxes | 24,000 | |||||||
Prepaid Insurance | 21,000 | |||||||
Capital Assets (net) | 571,800 | |||||||
Total Assets | 1,830,930 | |||||||
Liabilities and Equity | ||||||||
Accounts Payable | 78,641 | $78,641 | ||||||
Income Taxes Payable | 19,700 | |||||||
Capital Stock | 500,000 | |||||||
Retained Earnings | 1,232,589 | |||||||
Total Liabilities & Equity | 1,830,930 | |||||||
Accounts Payable (Check Figures ... Incorporate into Schedule of Payments in DM tab) | ||||||||
Direct Material Purchases (Nov2019) | 95,888 | |||||||
Direct Material Purchases (Dec2019) | 62,344 | |||||||
Financing | ||||||||
Minimum Bank Balance | $50,000 | |||||||
Borrowing Blocks | $10,000 | beginning of month | ||||||
Repayment Blocks | $10,000 | end of month | ||||||
Interest Rate for Borrowing | 3% | annual | ||||||
( | 0.25% | monthly) | ||||||
Sales | ||||||||
"Budgeted Sales (units)" | "Budgeted Sales ($)" | |||||||
2019 | Annual | 9,000 | 9,000,000 | 1,000 | ||||
2020 | Annual | 10,000 | 10,000,000 | 1,000 | ||||
2021 | Annual | 15,000 | 15,000,000 | 1,000 | ||||
"Forecasted Percentage of Annual Sales" | ||||||||
January | 1% | |||||||
Feburary | 2% | |||||||
March | 2% | |||||||
April | 2% | |||||||
May | 12% | |||||||
June | 15% | |||||||
July | 12% | |||||||
August | 10% | |||||||
September | 3% | |||||||
October | 8% | |||||||
November | 13% | |||||||
December | 20% | |||||||
100% | ||||||||
Average Selling Price (per unit) | $1,000 | |||||||
2019 | ||||||||
Variable Cost per Unit | 336.25 | |||||||
Accounts Receivable Collection Pattern | ||||||||
in the month of sale | 49% | |||||||
in the month following sale | 33% | |||||||
in the 2nd month following sale | 17% | |||||||
uncollectible | 1% | |||||||
100% | ||||||||
Inventory | ||||||||
Desired Ending Inventory (Direct Materials) | 40% | of next month's Production Needs | ||||||
Desired Ending Inventory (Finished Goods) | 25% | of next month's Sales | ||||||
Manufacturing Costs (& Time) | ||||||||
2020 Increase | ||||||||
Direct Materials | 1.25 | kg/unit | ||||||
$57.00 | $/kg | 3% | $71.25 | $1.71 | $58.71 | |||
Time in Production | 3.5 | hr/unit | ||||||
2020 Increase | ||||||||
Direct Labour (including employee benefits) | $30 | /hr | 3% | $105.0000 | $0.90 | $30.90 | ||
Variable Manufacturing Overhead Costs | 2020 Increase | |||||||
Plant & Equipment Maintenance | $70.00 | /unit | 3% | |||||
Utilities | $40.00 | /unit | 3% | |||||
Indirect Materials | $30.00 | /unit | 3% | |||||
Other | $20.00 | /unit | 3% | |||||
$160.00 | /unit | 3% | $160.00 | $4.80 | $164.80 | |||
Fixed Manufacturing Overhead Costs | Annual | 2020 Increase | ||||||
Supervisor Salaries | $181,800 | 3% | ||||||
Amortization of Plant & Equipment | $132,000 | straight line | ||||||
Insurance | $84,000 | paid April 1 | 3% | |||||
Training and Development | $54,750 | 3% | ||||||
Property and Business Taxes | $48,000 | paid July 1 | 3% | |||||
Other | $30,000 | 3% | ||||||
$530,550 | ||||||||
Selling & Admin Costs | ||||||||
Fixed vs Variable | 2020 Increase | |||||||
Highest level of sales | 1,600 | units | total operating expenses | $360,780 | 3% | |||
Lowest level of sales | 80 | units | total operating expenses | $87,270 | 3% | |||
"Pop-Up" Kiosks (May-Aug, Nov-Dec) | ||||||||
January | $- | |||||||
Feburary | $- | |||||||
March | $- | |||||||
April | $- | |||||||
May | $10,900 | |||||||
June | $10,900 | |||||||
July | $10,900 | |||||||
August | $10,900 | |||||||
September | $- | |||||||
October | $- | |||||||
November | $10,900 | |||||||
December | $10,900 | |||||||
$65,400 | ||||||||
Accounts Payable Payment Pattern | ||||||||
in the month of purchase | 20% | |||||||
in the month following purchase | 50% | |||||||
in the 2nd month following purchase | 30% | |||||||
100% | ||||||||
Capital Asset Purchases (Planned) | ||||||||
2020 | July | 50% | ||||||
2020 | October | 50% | ||||||
2020 | Total | $3,000,000 | ||||||
Income Taxes | ||||||||
Monthly Income Tax Installments | $25,000 | |||||||
Income Tax Rate | 25% | |||||||
Outstanding Income Tax Balances Payable | 75,000.00 | |||||||
Quarterly Dividend Payments | ||||||||
2020 | Mar-20 | $50,000 | ||||||
2020 | Jun-20 | $100,000 | ||||||
2020 | Sep-20 | $250,000 | ||||||
2020 | Dec-20 | $250,000 | ||||||
$650,000 |
Related Book For
Integrated Accounting
ISBN: 978-1285462721
8th edition
Authors: Dale A. Klooster, Warren Allen, Glenn Owen
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