47 Ax & fic C B D N 3 00 1 Hampton Freeze, Inc. 2 Balance Sheet on 12/31/2016 4 5 Assets 6 7 Current Assets Cash 9 Accounts Receivable 10 Raw Materials Inventory (21,000 pounds) Finished Goods Inventory (2,000 cases) 12 Total Current Assets 13 Property, Plant, and Equipment 14 Land 15 Building and Equipment 16 Accumulated Depreciation 17 Property, Plant, and Equipment, net 18 Total Assets $ 42,500 90,000 4,200 26,000 $ 162,700 80,000 700,000 (292,000) 1 488,000 $ 650,700 19 20 Liabilities and Stockholders' Equity 21 Current Liabilities 22. Accounts Payable $ 25,800 23 Stockholders' Equity 24 Common Stock $ 175,000 2016 Balance Sheet Budgeting Assumptions Schedule 1 Schedule 2 Ready c $ 25,800 A B 20 Liabilities and Stockholders' Equity 21 Current Liabilities 22. Accounts Payable 23 Stockholders' Equity 24 Common Stock $ 175,000 Retained Earning 449,900 26 Total Stockholders' Equity 27 Total Liabilities and Stockholders' Equity 25 624,900 $ 650,700 2 00 29 30 Hampton Freeze, Inc. Budgeting Assumptions For the Year Ended December 31, 2017 All 4 Quarters 1 10,000 Quarter 2 30,000 3 40,000 20,000 $ 20.00 70% 30% 5 Sales Budget 7 Budgets sales in cases 8 Selling Price per case 9 Percentage of sales collected in the quarter of sale 10 Percentage of sales collected in the quarter after sale 11 12 Production Budget 13 Percentage of next quarter's sales in ending finished goods inventory 14 Beginning Finished Goods inventory for year 15 Assumed desired ending Finished Goods inventory for year 16 | 17 Direct Materials Budget 18 Pounds of sugar per case 19 Cost per pound of sugar 20 Percentage of next quarter's production needs in ending inventory 21 Beginning Raw Materials inventory for year 2015 Balance Sheet Budgeting Assumptions Schedule Schedule 2 20% 2,000 3,000 15 $ 0.20 10% 21,000 Schedule > Schedule Schedule 5 Schedule 8 Schedule Sche Read B wwwwwwwy 21,000 22,500 50% 50% 0.40 $ 15.00 21 Beginning Raw Materials inventory for year 22 Assumed desired units of Ending Raw Materials inventory for year 23 Percentage of purchases paid in the quarter purchased 24 Percentage of purchases paid in the quarter after purchase 25 26 Direct Labor Budget 27 Direct labor-hours required per case 28 Direct labor cost per hour 29 30 Manufacturing Overhead Budget 31 Varialbe manufacturing overhead per direct labor-hour 32 Fixed manufacturing overhead per quarter 33 Depreciation per quarter 34 35 Selling and Administration Budget 36 Variable selling and administration expense per case 37 Fixed selling and administration expense per quarter 38 Advertising 39 Executive Salaries 40 Insurance 41 Property Tax 42 Depreciation 2016 Balance Sheet Budgeting Assumptions Schedule 1 Schedule 2 $ 4.00 $ 60,600 $ 15,000 $ 1.80 $ 20,000 $ 55,000 $ 10,000 $ 4,000 $ 10,000 Schedule 3 Schedule 4 813 Xfx 20% D E A F B > 4,000 $ 10,000 $ 30,000 41 Property Tax 42 Depreciation 43 44 Cash Budget 45 Minimum cash balance 46 Equipment purchases 47 Dividends 48 Must borrow in increments of: 49 Simple interest rate per quarter 50 51 $ 50,000 $ 40,000 $ 20,000 $ 20,000 $ 8,000 $ 10,000 3% A B C D E F 1 2 Hampton Freeze, Inc. Direct Labor Budget For the Year Ended December 31, 2017 3 4 5 Quarter 2 1 3 4 Year 6 7 Required production in cases (Production Budget) 8 Direct labor-hours per case 9 Total direct labor-hours needed 10 Direct labor cost per hour 11 Total direct labor cost 12 A E B D 3 4 Year 2 Manufacturing Overhead Budget 3 For the Year Ended December 31, 2017 4 Quarter 5 2 6 Budgeted direct labor-hours (DL Budget) 7 Variable manufacturing overhead rate 8 Variable manufacturing overhead 9 Fixed manufacturing overhead 10 Total manufacturing overhead 11 Less Depreciation 12 Cash disbursement for manufacturing overhead 13 14 Total manufacturing overhead 15 Budgeted direct labor-hours 16 Predetermined overhead rate for the year Schedule 3 Schedule 2016 Balance Sheet Budgeting Assumptions Schedule Schedule 2 Schedule 5 Sched Schedule Schedule Ready G H Total LO B C D E 2 Ending Finished Goods Inventory Budget 3 (absorption costing basis) 4 For the Year Ended December 31, 2017 5 Item Quantity Cost 7 Production cost per case 8 Direct materials pounds per pound Direct labor hours per hour 10 Manufacturing overhead hours per hour 11 Unit product cost 12 13 Budgeted finished goods inventory 14 Ending finished goods inventory 15 Unit product cost 16 Ending finished goods inventory in dollars 9 Schedule Schedule Schedule 4 Schedule 2 Budaeting Assumptions Schedules 1 Planet Schedule Schedule B c D E F 2 3 Selling and Administrative Expense Budget For the Year Ended December 31, 2017 4 Quarter 5 2 3 Year 6 Budgeted unit sales (Sales Budget) 7 Variable selling and administrative expense per case 8 Variable selling and administrative expense 9 Fixed selling and administrative expenses: 10 Advertising 11 Executive Salaries 12 Insurance 13 Property Taxes 14 Depreciation 15 Total fixed selling and administrative expenses 16 Total selling and administrative expenses 17 Less depreciation 18 Cash disbursements for selling and administrive expenses Budgeting Assumptions Schedule Schedule Schedule Schedule 4 Schedule Schedule Schedule Schechto Ready D E B I buurt For the Year Ended December 31, 2017 000 UN Quarter 2 1 3 4 Year 6 Beginning cash balance 7 Add: cash receipts: Collections from customers 9 Total cash available 10 Less: cash disbursements: 11 Direct materials 12 Direct labor 13 Manufacturing overhead 14 Selling and administrative 15 Equipment purchases 16 Dividends 17 Total cash disbursements 18 Excess (deficiency) of cash available over disbursements 19 Financing 20 Borrowings (at the beginnings of quarters) 21 Repayments (at end of the year) 22 interest 23 Total financing 21 Endina rach holanea Budgeting Assumptions Schedule 2 Schedule Schedules Schedule 4 Schedule 5 Ready Schedule Schedule A E 2. 3 1 Hampton Freeze, Inc. Budgeted Income Statement For the Year Ended December 31, 2017 4 5 Sales 6 Cost of Goods Sold 7 Gross margin 8 Selling and administrative expenses 9 Net operating income 10 Interest expense 11 Net income 12 13 Budgeting Assumptions Schedule 1 Schedule 2 Schedule 3 Schedule 4 Schedules Schedule 6 Schedule 7 Schedule Ready 1 Hampton Freeze, Inc. 2. Budgeted Balance Sheet 3 on 12/31/2017 4 Assets 5 6 Current Assets 7 Cash 8 Accounts Receivable 9 Raw Materials Inventory 10 Finished Goods Inventory 11 Total Current Assets 12 Property, Plant, and Equipment 13 Land 14 Building and Equipment 15 Accumulated Depreciation 16 Property, plant, and Equipment, net 17 Total Assets 18 Liabilities and Stockholders' Equity 19 Current Liabilities 20 Accounts Payable (raw materials) 21 Stockholders' Equity 22 Common Stock, no par 23 Retained Earning 24 Total Stockholders' Equity 25 Total Liabilities and Stockholders' Equity Budgeting Assumptions Schedule 1 Schedule 2