PLEASE ANSWER Table 5-operating expenses, table 6-cash budget, proforma income statement, and the balance sheet. All other tables are attached for reference. Thank you.

Instructions:

TABLE 5: PREPARE THE SELLING & ADMINISTRATIVE BUDGET FOR YEAR 2.

Variable selling expenses are for sales commissions at 1% of total sales dollars.

Fixed selling and administrative expenses for each quarter are as follows:

Advertising $12,000

Cleaning Supplies $300

Janitorial services $1,800

Office staff Salaries $7,500

Office supplies $900

Rent-office $2,700

Sales Salaries $10,500

Top managment salaries $24,000

Utilities-office $540

**In addition, Buns will pay a $7,500 Top Management bonus (additional salary expense) in Q1 Year 2.

TABLE 6: PREPARE THE CASH BUDGET FOR YEAR 2

Buns Bakery wants to maintain a cash balance of $25,000 each quarter.

They are able to borrow in increments of $1,000.

Interest is not compounded. The annual interest rate is 12%.

Buns pays back the loan and interest as early as possible while still maintaining the $25,000 minimum cash balance. Principal is repaid in $1,000 increments with interest calculated on the principal repayment. No interest is accrued.

The beginning cash balance is found on the beginning balance sheet provided in the Excel file.

TABLE 7: PREPARE A BUDGETED INCOME STATEMENT FOR YEAR 2.

Prepare an income statement for Year 2.

TABLE 8: PREPARE BUDGETED BALANCE SHEET, RETAINED EARNINGS FOR YEAR 2.

Prepare a balance sheet and statement of retained earnings for Year 2.

When preparing the ending balance sheet, use the beginning balance sheet in the Excel file for these items: Property Plant and Equipment, Common Stock, and Mortgage Payable.

Buns Bakery Basic Information For Year Ended December 31, Year 2 Buns Bakery Balance Sheet s of December 31, Year 1 ASSETS Current Assets Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory $25,000 $252,404 SO $4,740 $282,144 Total Current Assets Plant, Property & Equipment Land Building Equipment Accumulated Depr- Equipment $22,500 $170,400 $225,000 ($27,000) $390,900 Total Plant, Property&Equipment TOTAL ASSETS $673,044 LIABILITIES& STOCKHOLDERS EQUITY Liabilities Accounts Payable Mortgage Payable TOTAL LIABILITIES $41,739 $332,991 $374,730 Stockholders' Equity Common Stock (no par value; 45,000 shares outstanding) $45,000 $253,314 $298,314 Retained Earnings TOTAL STOCKHOLDERS' EQUITY TOTAL LIABILITIES&STOCKHOLDERS' EQ $673,044