$)$ Building and Creating Budgets:Now it is time to build out Budgets for your Manufacturing Company that you created in

Instructions, Sales Budget and Cash Collections Budget$($you might need separate paper$)$

Step $1$: List the Name and Sales price $ of each of the $3(\mathrm{.}25$ point$)$

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Step $2$: List the Estimated Forecasted Monthly Sales volume using graph below: $(\mathrm{.}75$ point$)$Create an excel sheet

January

February$$

March

April$$

May

June

July

August

September$$

October

November$$

December

Product $1$

$1$

Product $2$

Product $3$

Step $3$: What do you estimate to be the cash collections to be each month from sales? April May June $(\mathrm{.}5)$

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February

March

April

May

June

Product $1$ in Sales Dollars $

$$

$$

$$

$$

$$

Product $2$ in Sales Dollars $

$$

$$

$$

$$

$$

Product $3$ in Sales Dollars $

$$

$$

$$

$$

$$

Total

$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

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$($for example, $???\%$ cash collect in month of sale and $??\%$ in the second month, $??$X third month make$-$up your own split, and option to allocate $2\%$ or $5\%$ to uncollectible

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Cash Collection Budget based on total Sales $$ $(\mathrm{.}75$ point$)$

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April

May

June

Total

February Sales $$

$$

$$

$$

$$

March Sales $$

$$

$$

$$

$$

April Sales $$

$$

$$

$$

$$

May Sales $$

$$

$$

$$

$$

June Sales $$

$$

$$

$$

$$

Total Cash Collections

$$

$$

$$

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$5.)$Build out$$Product Budget $1$ points$$

Step $1$: Use the numbers already created in your Sales Budget for Production Budget

Step $2$: Second, decide how much ending inventory does your Manufacturing Company desire to have on hand at the end of the period? what $\%$ percentage of inventory available at the end of the month based off next month$$s sales should be available for sale? Build the production needed for each product $1,2$ and $3,$ what is your desired ending inventory for each product should be different

Product $1$

April

May

June

Quarter

Budget unit sales

$$

$$

$$

$$

Add: Desired Units ending finished goods

$$

$$

$$

$$

Total Needed

$$

$$

$$

$$

Less Units of beginning finished goods

$$

$$

$$

$$

Required Production in units

$$

$$

$$

$$

Product $2$ Production Budget

Product $2$

April

May

June

Quarter

Budget unit sales

$$

$$

$$

$$

Add: Desired Units ending finished goods

$$

$$

$$

$$

Total Needed

$$

$$

$$

$$

Less Units of beginning finished goods

$$

$$

$$

$$

Required Production in units

$$

$$

$$

$$

$$

$$

$$

Product $3$ Production Budget

Product $1$

April

May

June

Quarter

Budget unit sales

$$

$$

$$

$$

Add: Desired Units ending finished goods

$$

$$

$$

$$

Total Needed

$$

$$

$$

$$

Less Units of beginning finished goods

$$

$$

$$

$$

Required Production in units

$$

$$

$$

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$6.)$ Why is depreciation expense considered a non$-$cash impact or referred to as a non$-$cash expense? $(\mathrm{.}25$ point$)$

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