Final Project for the Managerial Accounting Course. Instructions sheet Fine Office Company Fine Office Company makes office furniture for offices. They are in the process of preparing a Master Budget including the Operating budget, Cash Statement, Income Statement and Balance Sheet for 2026. The yearly budget is broken into quarters. The year end is 31st December 2026. It has been requested to compile a master budget for the fiscal year 2026. Package is to include the following budgets; 1. Sales budget for each quarter and for the year 2. Production budget for each quarter and for the year 3. Purchasing Budget for each quarter and for the year 4. Direct labour budget for each quarter and for the year 5. Manufacturing overhead budget for each quarter and for the year 6. Selling and Administration budget 7. Work sheets for Collections and Disbursements 8. Budgeted Income Statement 9. CVP Income Statement 10. Worksheet 11. Budgeted Cash Statement 12. Budgeted Balance Sheet Additional details: Fine Office Company produces two products P100 and P200 Sales price per P100 is $155.00 Sales price per P200 is $305.00 There are (?) units from P100 in finished goods inventory at the end of 2025 with a value of $360,000 and (?) units from P200 at the end of 2025 value $300,000. At the end of each quarter, Fine Office Company requires ending inventory to be equal to 7.80% of the following quarter's budgeted sales in units. The required ending inventory for Dec. 31, 2026 are 600 units for P100 and 400 units for P200 Each P100 unit uses 2.00 sq. ft. of steel during the manufacturing process. The cost of steel for 2026 is estimated to be $12.00 per sq. ft. Each P200 unit uses 2.50 sq. ft. of steel during the manufacturing process. Fine Office Company currently has 3,000 sq. ft. of steel in the beginning inventory. At the end of each quarter, Fine Office Company wants to have 2,000.00 sq. ft of ending inventory. Each product requires 3.00 machine hours and 4.00 direct labour hours to produce. Direct Labour costs is $38.08 per direct labour hour. Fine Office Company allocates manufacturing overhead costs based on the estimated machine hours . Estimated variable manufacturing overhead cost for 2026 are $30,000 and the fixed manufacturing overhead is $100,000 per year. For each quarter, it is estimated that 30.00% of sales will be cash and 70.00% will be credit sales. Credit sales from Q3 2025 were $1,100,000 Credit sales from Q4 2025 were $1,300,000 Credit sales are collected in the following manner: Paid in the quarter of sale: 20.00% Paid 1 quarter after sale: 60.00% Paid 2 quarters after sale: 18.00% Uncollected portion: 2.00% All uncollected sales for the previous year were written off at the end of the year and have already been removed from the ending Accounts Receivable. Direct labour costs and manufacturing overhead costs are paid for in cash in the quarter they occurred. Assume operating expenses occur evenly throughout the year and are all paid in cash. For each quarter, 20.00% of material purchases are paid for in cash in the quarter of purchase and 80.00% are paid in the following quarter. Purchases of materials from Q4 2025 were $150,000 and the outstanding amount is included in the opening Accounts payable amount listed below. 100% of the outstanding Accounts Payable balance will be paid for in the first quarter of 2026. Fine Office Company will pay $225,000 in dividends in Q4 Currently, the cash balance in the bank is $15,000. Fine Office Company wants to maintain a minimum cash balance of $15,000 in the bank at the end of each quarter. Budgeted sales volumes year 2027 Q1: P100 Q1 8,500 P200 Q1 7,000 Budgeted sales volumes year 2026 are: P100: Q1 5,000 Q2 6,000 Q3 7,000 Q4 7,000 P200 Q1 6,900 Q2 6,900 Q3 7,800 Q4 8,500 Selling and Administration expenses for the budgeted year are as follows; Variable Cost: Delivery costs are based on $3.00 per sales unit. Commissions are based on 1.00% of sales value. Fixed Costs: Accounting & professional services = $3,600 Administrative & Sales Salaries = $100,000 Advertising = $25,000 Computer costs = $9,000 Depreciation = $80,000 Office Supplies = $5,000 Printing = $5,000 Insurance = $4,000 Property taxes = $5,000 Rent = $40,000 Utilities = $13,400 Total Fixed Costs = $290,000 Fine Office Company will purchase a new machine on 1/1/2026 worth $500,000 and will make two equal payments. The first payment will be in Q1 and the second in Q4. Assume the machine was purchased at the beginning of the year. Taxation is 25% on taxable income and paid at the end of Q 4 each year. Balance sheet information as at 31st December 2025 is as follows: PPE = $100,000 Accumulated Depreciation = $100,000 Common Stock = $580,000 Retained Earnings = $837,000 Accounts Receivable = $1,212,000 Accounts Payable = $494,000 For Cost of goods sold (COGS); Add total costs of production + Beginning Finished goods - Ending Finished goods Inventory. Interest of $9,000 on loans is paid in total at the end of the year and is a fixed cost. I need help in the following worksheets

Schedule of receipts from customers
			Receipts by Quarter
	Cash Sales	Credit Sales	Qtr 1	Qtr 2	Qtr 3	Qtr 4
Accounts Receivable - 31st Dec 2025
First Quarter
Second Quarter
Third Quarter		$1,100,000
Fourth Quarter		$1,300,000
Total Payments:-
Cash Sales		30%
Credit Sales		70%
Collection of Credit sale in the quarter of the sale	20%
Collection of Credit sale in the following quarter	60%
Collection of Credit sale in the next quarter	18%
Schedule of expected payments for Direct materials
			Payments by Quarter
		Purchases	Qtr 1	Qtr 2	Qtr 3	Qtr 4
Accounts Payable - 31st Dec 2025
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Total Payments:-
Purchases paid in cash in the same quarter
Purchases paid in the following quarter

CASH BUDGET
for the year ending 31st December 2026
	1	2	3	4	Year
Beginning cash balance
Add: Receipts
Collections from Customers
Total available cash:
Less: Disbursements
Direct Materials
Direct Labour
Manufacturing Overhead
Selling and Administrative expenses
Purchase of a Machine
Income Tax expense
Dividends
Total disbursements:
Excess (deficiency) of available cash over cash disbursements
Financing
Add: Borrowings
Less: Repayments
Less: Interest
Ending cash balance
Notes:
Don't forget the minimum cash balance
Interest on loans to be paid in Quarter 4
Taxation amount taken from the Income Statement

Balance Sheet at 31st December 2026
Assets	$	$
Current Assets:
Cash
Accounts receivable
Finished goods inventory
Raw materials inventory
Total Current Assets:
Long Term Assets:
Property, Plant & equipment
Less: Accumulated depreciation
Total Long Term Assets:
Total Assets:
Liabilities and Shareholders Equity
Liabilities:
Accounts payable
Bank Loan
Total Liabilities
Shareholders Equity:
Common Stock
Retained Earnings
Total Shareholders Equity:
Total Liabilities and Shareholders Equity
Statement of Retained Earnings as at 31st December 2026
Opening balance
Add: Net Income
Less: Dividends
Closing balance
Recreated from information provided:
Balance Sheet at 31st December 2025
Assets	$	$
Current Assets:
Cash
Accounts receivable
Finished goods inventory
Raw materials inventory
Total Current Assets:
Long Term Assets:
Property, Plant & equipment
Less: Accumulated depreciation
Total Assets:
Liabilities and Shareholders Equity
Liabilities:
Accounts payable
Shareholders Equity:
Common Stock
Retained Earnings
Total Shareholders Equity
Total Liabilities and Shareholders Equity

I have finished all sheets except those three above. Also in the CVP income statement sheet, I don't have my net income after taxation matching with the result of the income statement! need help in that too

Sales Budget Year 2026
Quarter	1	2	3	4	Year
P100 Expected Sales units	5,000	6,000	7,000	7,000	25,000
Selling Price	$ 155.00	$ 155.00	$ 155.00	$ 155.00	$ 155.00
Total Sales P100	$775,000	$930,000	$1,085,000	$1,085,000	$3,875,000
P200 Expected Sales units	6,900	6,900	7,800	8,500	30,100
Selling Price	$ 305.00	$ 305.00	$ 305.00	$ 305.00	$ 305.00
Total Sales P200	$2,104,500	$2,104,500	$2,379,000	$2,592,500	$9,180,500
Total Sales	$2,879,500	$3,034,500	$3,464,000	$3,677,500	$13,055,500

Production Budget Year 2026
Quarter	1	2	3	4	Year
Expected Sales Units P100	5,000	6,000	7,000	7,000	25,000
Add desired ending of Inventory P100	468	546	546	600	2,160
Total needs P100	5,468	6,546	7,546	7,600	27,160
Less beginning of Inventory P100	2,323	468	546	546	3,883
P100 Required Production: Units	3,145	6,078	7,000	7,054	23,277
Expected Sales Units P200	6,900	6,900	7,800	8,500	30,100
Add desired ending of Inventory P200	538	608	663	400	2,210
Total needs P200	7,438	7,508	8,463	8,900	32,310
Less beginning of Inventory P200	984	538	608	663	2,793
P200 Required Production: Units	6,455	6,970	7,855	8,237	29,516

Direct Materials Budget
Quarter	1	2	3	4	Year
P100 Production units	3,145	6,078	7,000	7,054	23,277
Materials per unit	2	2	2	2	2
P100 Total material needs/Used	6,291	12,156	14,000	14,108	46,555
P200 Production units	6,455	6,970	7,855	8,237	29,516
Materials per unit	2.50	2.50	2.50	2.50	2.50
P200 Total material needs/Used	16,136	17,426	19,637	20,593	73,791
Total Material needs for P100 and P200	22,427	29,582	33,637	34,701	120,346
Add desired ending of Inventory	2,000	2,000	2,000	2,000	2,000
Total needs	24,427	31,582	35,637	36,701	122,346
Less beginning of Inventory	3,000	2,000	2,000	2,000	9,000.00
Materials to be purchased: Units	21,427	29,582	33,637	34,701	113,346
Unit price	12	12	12	12	12
Materials to be purchased: $	$ 257,128	$ 354,978	$ 403,638	$ 416,406	$ 1,360,150
Cost of Ending Inventory of Direct materials 31st december 2026:			24,000

Direct Labour Budget
Quarter	1	2	3	4	Year
Production Units	9,600	13,048	14,855	15,291	52,794
Labour per unit	4.00	4.00	4.00	4.00	4.00
Total labour needs	38,400	52,193	59,418	61,164	211,175
Labour Rates Paid	$38	$38	$38	$38	$38
Total Direct Labour cost: $	$1,462,274	$1,987,502	$2,262,653	$2,329,125	$8,041,554

Manufacturing Overhead Budget
	1	2	3	4	Year
Budgeted Production units	9,600	13,048	14,855	15,291	52,794
X Machine hours per unit	3	3	3	3	3
= Total Budgeted Machine hours	28,800	39,145	44,564	45,873	158,381
X Predetermined Variable Overhead Rate	$ 0.19	$ 0.19	$ 0.19	$ 0.19	$ 0.19
Budgeted Variable Manufacturing Overhead	$ 5,472	$ 7,437	$ 8,467	$ 8,716	$ 30,092
+ Budgeted Fixed Manufacturing Overhead	$ 25,000	$ 25,000	$ 25,000	$ 25,000	$ 100,000
= Total Manufacturing Overhead	$ 30,472	$ 32,437	$ 33,467	$ 33,716	$ 130,092
				Test:
Predetermined Variable Overhead Rate:	Estimated Variable Manufacturing Overhead	$ 30,092
	Machine Hours	158,381
=	$ 0.19	0.19
=	$ 0.19		per machine hour

Ending Finished Goods Inventory Budget P100
Cost Element	Quantity	Cost	Total
P100
Direct Materials	2.00	$ 12.00	$24.00
+ Direct Labour	4.00	$ 38.08	$152.32
+ Manufacturing Overhead	3.00	$0.19	$0.57
= Product Cost Per Unit	9.00	$50.27	$176.89
X Ending Inventory in Units	2,160
Ending Finished Goods Inventory			$382,082.40
Ending Finished Goods Inventory Budget P200
Cost Element	Quantity	Cost	Total
P200
Direct Materials	2.50	$ 12.00	$30.00
+ Direct Labour	4.00	$ 38.08	$152.32
+ Manufacturing Overhead	3.00	0.19	$0.57
= Product Cost Per Unit			$182.89
X Ending Inventory in Units	2,210
Ending Finished Goods Inventory			$404,113.74

Cost of Goods Sold	$
Direct materials Used	$1,360,149.87
Direct labour costs	$8,041,553.57
Manufacturing Overhead Costs	$130,092.47
Total costs of production	$9,531,795.91
+ Beginning Finished goods	$660,000.00
- Ending Finished goods Inventory	$786,196.14
= Cost of Goods Sold	$9,405,599.76

Selling and Administrative Expense Budget
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Year
Budgeted Sales in units:	11,900	12,900	14,800	15,500	55,100
Budgeted Sales value:	$2,879,500.00	$3,034,500.00	$3,464,000.00	$3,677,500.00	$13,055,500.00
Variable Cost:
	Delivery costs	$35,700.00	$38,700.00	$44,400.00	$46,500.00	$165,300.00
	Commissions	$28,795.00	$30,345.00	$34,640.00	$36,775.00	$130,555.00
Total Variable Costs:	$64,495.00	$69,045.00	$79,040.00	$83,275.00	$295,855.00
Fixed Costs:
	Accounting & professional services	$3,600.00	$3,600.00	$3,600.00	$3,600.00	$14,400.00
	Administrative and sales salaries	$100,000.00	$100,000.00	$100,000.00	$100,000.00	$400,000.00
	Advertising	$25,000.00	$25,000.00	$25,000.00	$25,000.00	$100,000.00
	Computer costs	$9,000.00	$9,000.00	$9,000.00	$9,000.00	$36,000.00
	Depreciation	$80,000.00	$80,000.00	$80,000.00	$80,000.00	$320,000.00
	Office Supplies	$5,000.00	$5,000.00	$5,000.00	$5,000.00	$20,000.00
	Printing	$5,000.00	$5,000.00	$5,000.00	$5,000.00	$20,000.00
	Insurance	$4,000.00	$4,000.00	$4,000.00	$4,000.00	$16,000.00
	Property taxes	$5,000.00	$5,000.00	$5,000.00	$5,000.00	$20,000.00
	Rent	$40,000.00	$40,000.00	$40,000.00	$40,000.00	$160,000.00
	Utilities	$13,400.00	$13,400.00	$13,400.00	$13,400.00	$53,600.00
Total Fixed Costs:	$290,000.00	$290,000.00	$290,000.00	$290,000.00	$1,160,000.00
Total costs:	$354,495.00	$359,045.00	$369,040.00	$373,275.00	$1,455,855.00
Cash Total per quarter: $	$2,605,005.00	$2,755,455.00	$3,174,960.00	$3,384,225.00
Note: Deduct non cash expenses to get to the cash total per quarter

Income Statement for year ended 31st December 2026
	$
Sales	13,055,500
Cost of goods sold	9,405,600
Gross profit	3,649,900
Selling and Administration expenses	1,455,855
Operating Income	2,194,045
Interest expense	9,000
Net Income before taxes	2,185,045
Taxation	546,261
Net Income after taxes	$ 1,638,784

CVP Income Statement for year ended 31st December 2026
	$	$
Sales		$13,055,500
Less: Variable Costs
Direct materials	$1,360,150
Direct Labour	$8,041,554
Manufacturing Variable Overhead costs	$30,092
Selling & Administration variable costs	$295,855
Total Variable Costs	$9,727,651
Adjustment for Finished Inventory
Beginning Finished Goods Inventory		$660,000
Less: Ending Finished Goods Inventory	$786,196
Net adjustment for inventory change
Total Contribution Margin		$3,201,653
Less: Fixed costs
Manufacturing overhead	$130,092
Selling & Administration fixed costs	$1,160,000
Interest costs	$9,000
Income Tax	$546,261
Total Fixed Costs	$1,845,354
Net Income after taxation		$1,356,299
Check result with Income Statement:		$1,638,784