INSTRUCTIONS:

Based on the information available to you, provide solution forCash Budget. Income Statement andBudgeted Balance Sheet worksheetbelow.

Depreciation expense per month $5,300 Insurance policy: Months of insurance coverage paid for 12 The policy period is from February 1 to January 31 each year The premium to be paid on February 1, 2020 is $15,336 The premium will be charged to prepaid insurance Insurance premium that was paid on February 1, 2019 $15,660 Income Tax rate 21.00% Accrued taxes for the three previous full months are paid on the 15th of January, April, July and October. The Company's Board of Directors plans to declare a dividend on January 20. $15,000 It will be paid on February 5.Module 6 Excel Workbook Assignment Use the information provided on the December 31, 2019 Balance Sheet shown below to help you create the budgeting documents requested. Get Laughy Taffy, Inc. BALANCE SHEET December 31, 2019 ASSETS Current Assets Cash $ 303,200 Accounts Receivable 156,940 Inventory 72,137 Prepaid Insurance 1,305 Total Current Assets 533,582 Property Plant and Equipment Equipment 318,000 Accumulated Depreciation (63,600) Total Property Plant and Equipment 254,400 Total Assets $ 787,982 LIABILITIES AND SHAREHOLDERS EQUITY LIABILITIES Current Liabilities Accounts Payable - Purchases $ 96,487 Sales Commission Payable 6,650 Selling and Administrative Payable 5,320 Interest Payable 450 Marketing Payable 7,665 Income Taxes Payable 14,977 Dividends Payable Total Current Liabilities 131,549 Long Term Debt 135,000 Total Liabilities 266,549 SHAREHOLDERS' EQUITY Common Stock 104,000 Retained Earnings 417,433 Total Shareholders' Equity 521,433 Total Liabilities and Shareholders Equity $ 787,982Module 6 Excel Workbook Assignment Based on the information available to you, complete the Cash Budget worksheet below: Check figures are: January Cash Receipts = $230,330; February Cash Disbursements = $181,918; March Ending Cash Balance = $375,286. Solution: Get Laughy Taffy, Inc. PLANNED CASH TRANSACTIONS and CASH BUDGET For the Month Ending, Jan 31, 2020 Feb 29, 2020 Mar 31, 2020 Beginning of Month Cash Balance CASH IN This Month's Sales Last Month's Sales Total Cash Receipts for Month Total Cash Available During Month CASH OUT Last Month's Purchases This Month's Purchases Marketing Commissions Selling & Administrative Insurance Interest Income Tax Dividends Total Cash Disbursements for Month End of Month Cash BalanceModule 6 Excel Workbook Assignment Based on the information available to you, complete the Budgeted Income Statement worksheet below: Check figures are: January Budgeted Gross Margin = $62,650; February Budgeted Operating Income = $23,442; March Budgeted Net Income = $13,353. Solution: Get Laughy Taffy, Inc. BUDGETED INCOME STATEMENTS For the Month Ending, Jan 31, 2020 Feb 29, 2020 Mar 31, 2020 Sales Cost of Sales Gross Margin Other Operating Expenses Commission Expense Marketing Expense Insurance Expense Selling & Administrative Expense Depreciation Expense Total Other Operating Expenses Operating Income Other Income (Expense) Interest Expense Income Before Income Tax Income Tax Expense Net IncomeModule 6 Excel Workbook Assignment Based on the information available to you, complete the Budgeted Balance Sheet worksheet below: Check figures are: January Total Assets = $776,433; February Total Liabilities = $237,217; March Total Current Assets = $555,164. Solution: Get Laughy Taffy, Inc. BUDGETED BALANCE SHEETS ASSETS Dec 31, 2019 Jan 31, 2020 Feb 29, 2020 Mar 31, 2020 Current Assets Cash Accounts Receivable Inventory Prepaid Insurance Total Current Assets Property Plant and Equipment Office Equipment Accumulated Depreciation Total Property Plant and Equipment Total Assets LIABILITIES AND SHAREHOLDERS EQUITY LIABILITIES Current Liabilities Accounts Payable - Purchases Sales Commission Payable Marketing Payable Selling and Admin Payable Interest Payable Dividends Payable Income Taxes Payable Total Current Liabilities Long Term Debt Total Liabilities SHAREHOLDERS' EQUITY Common Stock Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders EquityModule 6 Excel Workbook Assignment Based on the information available to you, complete the Purchases Budget worksheet below: Check figures are: January Budgeted Purchase for Next Month Sales = $118,365; March Inventory Needed to be Available during Current Month = $176,878. Get Laughy Taffy, Inc. PURCHASES BUDGET PLANNING FOR 2020 Solution: Actual Budgeted Budgeted Budgeted Dec 2019 January February March Desired Ending Inventory Balance for Current Month $ 72,137 $ 74,152 $ 65,689 70,928 Current Month's Cost of Sales 172,900 116,350 119,600 105,950 Inventory Needed to be Available during Current Month 245,037 190,502 185,289 176,878 Less: Beginning Inventory of Current Month 107,198 72,137 74,152 65,689 Budgeted Purchase for Next Month Sales $ 137,839 $ 118,365 $ 111,137 $ 111,189Module 6 Excel Workbook Assignment A relatively new company, Get Laughy Taffy, inc., has determined they need to engage in a budgeting process as part of their new strategic plan. The Company has asked you to provide the following items for the months of January, February, and March of 2020: A} a Purchasa Budget; B} a Cash Budget; C} a Budgeted income Statement; and D} a Budgeted Balance Sheet. They have provided you with the planning document below and also, with their December 31, 2019 Balance Sheet. Please complete the four budget documents requested on Worksheet Tabs A, B, C, and D of this Workbook. Check Figures are provided for you on each Worksheet. Getlaughy Taffy, Inc. PLANNING DATA FOR 2020 Actual November 2019 Sales Actual December 2019 Sales Expected 2020 Monthly Sales January February March April All Sales are on Credit I Collections of Accounts Receivable: Month of Service Month following Service Cost of Goods Sold as a percentage of selling price. Planned ending inventory as a percentage of next month's required inventory. Purchases are are all on credit. Actual Purchases made in December 2019 Purchases paid in current month Purchases paid in next month Marketing expenses have a fixed and variable portion: Fixed portion The fixed portion of the marketing is paid in the current mo nth. Variable portion as a percentage of sales The variable portion is paid two months after the mo nth incurred. Sales commission as a percent of sales Sales commission are paid one month after the month incurred. Selling and Administrative expenses have a fixed and variable portion: Fixed portion is paid in the month incurred Variable portion as a percentage of sales Variable 5&A expenses are paid one month after the month incurred The annual interest rate on the long term debt is 5 245,000 5 2 55,000 5 1 79,000 5 134,000 5 1 53,000 5 1 75,000 41.00% 59.00% 65.00% 62.00% 5 137,339 30.00% 70.00% 53,540 1.50% 2.50% $19,800 2.00% 4.00%