LO$22-2,3$ P$22-45.$ Developing a Master Budget for a Manufacturing Organization: Challenge Problem

Computer Accessories Inc. assembles a computer networking device from kits of imported components.

You have been asked to develop a quarterly and annual operating budget and pro forma income state$-$

ments for next year. You have obtained the following information.

Additional information

All cash payments except purchases are made quarterly as incurred.

All borrowings occur at the start of a quarter.

All repayments on borrowings occur at the end of a quarter.

At the time the principal is repaid, interest is paid on the portion of principal that is repaid.

Borrowings and repayments may be made in any amount.

Required

a$.$ A sales budget for each quarter and the year.

b$.$ A production budget for each quarter and the year.

c$.$ A purchases budget for each quarter and the year.

d$.$ A manufacturing cost budget for each quarter and the year.

$e.$ A selling and administrative expense budget for each quarter and the year.

$f.$ A cash budget for each quarter and the year.

g$.$ A pro forma contribution income statement for each quarter and the year.