$**$Company Background$**$

$-**$Budgeting:$**$ Monthly master budget system.

$-**$Fiscal Year:$**$ Ends April $30.$

### $**$Sales Forecasts$**$

$-**2025($Actual $+$ Budgeted$)$:$**540$K units @ $$22.$

$-**2026$:$**560$K units @ $$23.$

$-**2027$:$**580$K units @ $$24.$

### $**$Key Operational Details$**$

$1.**$Sales Seasonality $(\%$ of Annual Sales:

$-$ Slow $(6\%)$: Jan, Mar, May, Jun

$-$ Moderate $(8\%)$: Jul, Aug, Sep

$-$ High $(9\%)$: Feb $($Valentine$$s$),$ Apr $($Easter$)$

$-$ Peak: Oct $(10\%),$ Nov $(11\%),$ Dec $(13\%)$

$2.**$Collections:

$-50\%($month of sale$),30\%($next month$),18\%($month after$),$ and $2\%$ bad debt.

$-$ Apr $2025$ A$/$R: $$653,400($will be collected May$-$Jun $2025).$

$3.**$Inventory Policies:

$-**$Finished Goods:$**30\%$ of next month$$s sales.

$-$ May $2025$ opening: $10,350$ units. $-$ The only related cost is a flat $$20,000$ per month

$-**$Raw Materials $($HA$)$:$**0\mathrm{.}5$ kg$/$unit @ $$15/$kg$.$

$-$ Keep $40\%$ of next month$$s needs.

$-$ May $2025$ opening: $6,900$ kg$.$

$4.**$Payments:

$-**$Materials:$**45\%($month$),30\%($next$),25\%(2$ months later$).$

$-$ Apr $2025$ A$/$P: $$244,744($Mar$-$Apr $2025$ purchases$).$

$-**$Labor:$**$ $$20/$hr; $0\mathrm{.}15$ hrs$/$unit$.$

$-40$ full$-$time staff $($min $160$ hrs$/$month$).7.**$Direct Labor: $-$$$20/$hour; $0\mathrm{.}15$ hours$/$unit$.-40$ full$-$time employees $($min$.160$ hours$/$month each$).-$ Temporary workers hired as needed at $$20/$hour$.8.**$Manufacturing Overhead: $-$ Variable: $$4\mathrm{.}00/$unit$.-$ Fixed: $$960,000/$year $($includes $$192,000$ depreciation$).-$ Paid evenly, except depreciation. $9.**$Selling & Administrative Expenses: $-$ Fixed: $$924,000/$year $($includes $$4,750/$month office depreciation$).-$ Starting $2026$: $$1/$unit sales commission $($excluded from above$)-35\%$ rate. $-$ Monthly installments of $$50,000$ in $2026.-$ April $2025$ taxes $($$$155,000)$ paid December $2025.-$ April $2026$ taxes $($excess of installments$)$ paid December $2026.11.**$Capital Expenditure: $-$ New equipment: $$1,000,000($paid in $8$ installments of $$125,000$ from July $2025).12.**$Financing: $-$ Minimum cash balance: $$50,000.-$ Line of credit: $8\mathrm{.}4\%$ per annum interest $(0\mathrm{.}7\%/$month$).-$ Borrowing$/$repayment in $$1,000$ multiples. $-$ Loan balance at April $30,2025$: $$225,000.13.$ Dividends: $-$$$30,000/$month $($paid monthly$).14.**$April $30,2025$ Balances:$**-$ Cash: $$50,000|$ A$/$R: $$653,400|$ Raw Materials: $$103,500|$ Finished Goods: $$165,600-$ Capital Assets $($net$)$: $$2,427,500-$ Accounts Payable: $$244,744|$ Loan: $$225,000|$ Income Tax Payable: $$155,000-$ Equity: Capital Stock $$1,000,000+$ Retained Earnings $$1,775,256$ Find Master Budget for April $30,2026$: $1.$ Sales Budget & Schedule of Cash Receipts $2.$ Production Budget $3.$ Direct Materials Budget & Schedule of Cash Disbursements $4.$ Direct Labour Budget $5.$ Manufacturing Overhead Budget $6.$ Selling and Administrative Expense Budget$$

$7.$ Cash Budget

$8.$ Statement of Income$$

$9.$ Statement of Financial Position$$