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% B D E F 2 Hampton Freeze, Inc. Sales Budget For the Year Ended December 31, 2017 3 4 5 Quarter 1 2 3 4 Year 6 7 Budgeted unit sales in cases) 8 Selling price per unit 9 Total sales 10 11 12 13 Beginning accounts receivable 14 First-quarter sales 15 Second-quarter sales 16 Third-quarter sales Schedule of Expected Cash Collections 2016 Lance Sheet Budgeting Assumptions Schedule Schedule 2 Schedules Scheduled Schedder Schedule Schedule 16 Third-quarter sales 17 fourth-quarter sales 18 Total cash collections 19 20 D F m 1 2 Quarter B Hampton Freeze, Inc. Production Budget 3 For the Year ended December 31, 2017 (in cases) 5 6 7 1 2 8 Bugeted unit sales (Sales Budget) 9 Add desired units of ending finished goods inventory 10 Total needs 11 Less units of beginning finished goodsinventory 12 Required production in cases 13 3 Year 15 16 A B E F m 5 6 1 3 4 Year Hampton Freeze, Inc. Direct Materials Budget For the Year Ended December 31, 2017 4 Quarter 2 7 Required production in cases (Production Budget) 8 Units of raw material needed per case 9 Units of raw material needed to meet production 10 Add desired units of ending raw materials inventory 11 Total units of material needed 12 Less units of beginning raw materials inventory 13 Units of raw material to be purchased 14 Cost of raw materials per pound 15 Cost of raw materials to be purchased 16 17 18 Schedule of Expected Cash Disbursements for Puchases of Materials 19 20 Beginning accounts payable 21 First-quarter purchases 2016 Balance Sheet Budgeting Assumptions Schedule Schedule Schedule 3 Schedule 4 Schedule 5 Schedule 6 Schedule J8 XV fc A Zu Beginning accounts payapre 21 First-quarter purchases 22 Second-quarter purchases 23 Third-quarter purchases 24 Fourth-quarter purchases 25 Total cash disbursement for materials 26 27