please help, and explain how to get the answers. ive included the budgets ive already completed but im confused starting with the selling and administrative budget. TIA!

Msathed by Doug Roberts. Apaatachian State Unversty Town. Aher a number of unsuccesstul ahempts at getting a job in his dociplne, Michael decided to go into business for Fimself, in thriking about his baniness ventire, Michowl determined that he had four crteria for the new business. - Fint he wanted to do screesing that he woul enjy. - Seccond, he wanded a tuahess that would give back to the communty. - Third, he warled a business that would grow and be more successiful every yoar. - Fourth, reateng that he was going to have to work very hard, Michael wanted a businoss that would gonsrate sulficient net incorre eash fow scroen procest. The closest place regured a tre to a cly 100 mles away to vist "Shirts and More." Michaet had worked as a part-time employee at Shirts and More while he was in high school and had emsiconed owning such a shop. He realied that a sweatshirt shop in Campus-4 fown had the give him terms of 50 percert due upon putchase and 50 percent due the quarter folowing the purshase, Michaet wil purchase the folowirg equipment Jamary 1,201 fercentagel percent of the quarters purchas es ip to poid in the quarter folowing the purshase. Michael also learned from taking wth Jayne that the ink used in the silk-screen process costs approximately 5X (see INPUTS worksheet for amount] pertshit. Knowing that the sik-screen process is somewhat tabor intensive, Michael plans to hire skx colege students to help with the silk-screen process with each one working an average of 20 hours per week for 50 weeks during the year. The wage rate to be paid wil be $X Isee iNPUTS worksheet for amount an hour: In addition, Michael wil neod one person to take orders, bill customers, and operate the cash register, Cary Sue Smith, who is currently Orector of Student Development at Eastern University, has approached Michael about a job in salos. Cary Sue knows the officers of all of the student organizations on campus (potential customers). In addation, she is very active in the community (more potential customers). Michael thinks Cary Sue can tring in a lot of bushess. In addition she also has the clerical skils needed for the position. Because of her contacts, Michael is wiling to pay Cary Sue $XX isee INPUTS worksheet for amount] per month plus a commission of XX [see INPUTS worksheet for amount] percent of sales. Michael estimates Cary Sue WII spend XOX fsee INPUTS worksheet for amount] percent of the workday focusing on sales, while the remaining XX [see INPUTS worksheet for amountl percent wit be spent on clorical and administrative duties. Michael realizes that he wil have dificulty in finding a person skilled in computer graphics to generate the designs to be printed on the shirts. Jayne recently hired a graphics designer in that position for Shirts and More at a fate of \$XX [eff? INPUTS worksheet for amount] per month plus $ XXX [see INPUT'S worksheet for amount] for each shirt printed. Michael believes he can find a university graphics design student to work for the same rate Jayne is paying her designer. Wichaef was fortunate in finding a commercial bulding for rent near the University and the downtown area. The landlord requires a one-year lease. Ashough the monthly rent of SXOX [see INPUTS worksheet for amount] is more than Michael had anticlpoted paying. the buiding is nice, has adequate parking, and there is room for expansion. Michael anticipates that XX [see INPUTS worksheot for amount] percent of the building wil be used in the sikscreen process while [see iNPUTS workshet for amountl percent will be used for sales. Michaels fraternity brothers have encouraged him to advertise weekly in the University student newspaper as well as the local paper. Upon inquiring Michael found that a 33 ad in the student paper and a weekly ad in the kocal newspaper wil cost him $X Isee INPUTS worksheet for amount] per woek. Michael wants to sel a large number of quality shirts at a reascnable cost. He estimates the sellng price of each custornized shirt to be $0 Isee INPPTS worksheet for amount]. Jayne has suggested that he should ask customers to pay for XX [see INPUTS worksheet for amount] percent of their purchases in the quarter purchased and pay the addeional XXK [see INPUTS worksheet for amount] porcent in the quarter folowing the purchases. Afler talking to the insurance agent and the property valuation administrator in his munkipasity, Michael estimates that the property taxes and insurance on the machinery wil cost \$XXX (see inPurs worksheet for amound) annually, While property tax and insurance on display furniture and cash register wil total SX0K [see thiPuTS worksheet for amound annualy. Seeing how determined his son was to become an entrepreneur, Michacl's father offered to ce-sign a note for an amount up to 30 Isee iNPUTS worksheet for amount] to help Michael open his sweatshirt shop, Swoats Gaiore. However, when Michael and his father approached the loan officer at First Guarantee Bank, the ban officer asked Michael to produce the foltowing budgots for 201 : - Sales budget - Schedule of expected colections from customers - Stirt purchases budget - Schedula of expected payments for purchases - S5.-screen tabor budget. - Selling 8 adminis trative expense budget - Sat-scroen ovorhesd budgot - Budpeted income statement -Cash budget - Budgeted batance sheet The ban officer advised Michael that the interest rate on a 12 -month loan would be XX/see INPUTS worksheet for amount] percent. Michael expects the ban to be taken out January 1,201. Michael has estimated that his income tax rate will be Xo (see iNPUTS worksheet for amount] percent. He expects to pay the fotal tax due when his returns are fled in the following year. REVENuE ASSUVPTIONS Cotemated number of skirse bo be seld in the first five quarters: Fint quater pear : Sacond cubser vear Fouth curater yours Scheduin ef coltections. cost assumb nons: Purthaing assimplons Schedule for peymert ef owestatils Diret inbor costa hatsitips Wor cosi ASSUMPTiows Cary Suek compenation Monthy arary Ament if whas Graphile deslgner costh Mintery tout Par thit tett Eullaing rental Monaly rent of buld ing Oether tests: Anhual posetry tares and insurace on machinery ivales cost per ahit tamenance cost pershit Mamiencance monthy fred cost Oener likes: Dencet than annen! calemu rate en wen thementer tore 5. 1,00000 2000 10.000 20.000 12,000 10,000 255. ( 900 22s 35% 65% 11100 0,12 7800 60000 cheprin tar nafe a E F D Complete the Seling and Administrative Expense Budget. REMiNDER: Make sure every cel is either a formula or a reference o another cell (or range of colls). Depreciation is given to you. Calculations for year totals are provided as well. 8. Complete the Silk-screen Overhead Budget. REMINDER: Make sure every cell is either a formula or a reference to another cell (or range of cells). Depreciation is given to you, Calculations for year totals are provided as well. NOTE/HINT: your variable costs here should be based upon the number of shirts sold, NOT the number of shirts nurchased 9. Using the information found in the case and the previous budgets, complete the Budgeted Income Statement. REMINDER: Make sure every cell is either a formula or a reference to another cell (or range of cells). The cell references for cost of goods sold are given to you - take time to see where this comes from but do not change it. 10. Using the information found in the case and the previous budgets, complete the Cash Budget. REMINDER: take sure every cell is either a formula or a reference to another cell (or range of cells). The cell reference for omowings in quarter 1 is given to vou: no other borrowing or repavments are made. 11. Using the information contained in the case and the previous budgets, complete the Budgeted Balance Sheet. REMINDER: Make sure every cell is elther a formula or a reference to another cell (or range of cells) Cell references for equlpment, accumulated depreclation, interest payable, taxes payable are provided; the formula to calculate capital is provided too. Examine these to understand where the numbers come from but. Jo not chance them. NOTE: it "Michael Woods, Caplar" is negative, that is olay; although not good, equity can be negative. SWEATS GALORE \begin{tabular}{l} \text {\( Budgeted Balance Sheet } \) \\ \text {\( December 31, 20X1 } \) \end{tabular} \] Assets Cash Accounts receivable Sweatshirt Inventory Equlpment Less: Accumulated depreciation Total assets Liabilities and Owner's Equity Acoounts payable Note payable interest payable Taxes payable Total liabilties Michael Woods, Capital Total liabilies and owner's equity 2. Complete the Sales Budget for the year ending 20X1. REMINDER: Make sure every cell is eather a formula or a reference to another cell (or range of cells) Quarter t is done for you. Calculations for year totals are 3. Complete the Schedule of Expected Collections from Customers. REMINDER: Make sure every cell is either a fomula or a reference to another cell (or range of cells). Collections related to first quarter sales are glven 4. Michael leamed from talking wh Jayne that the supplier is so focused on making qualify sweatshirts that many times the shirts are not avalable for several days. She encouraged Michael to maintain an ending inventory of shirts equal to XX [see INPUTS wonsheet for amount] percent of the next quarter's sales. REMINDER: Make sure every cell is either a fomula or a reference to another cell (or range of celis) - except for beginning inventory in quarter 1 which is zero (which is glven to you) Calculations for year totals are provided as well. 5. Complete the Schedule of Expected Payments for Purchases. REMINDER: Make sure every cell is either a fomula or a reference to another cell (or range of cells). Complete the Sik-screen Labor Budget. REMINDER: Make sure every cell is either a formula or a reference to another cell (or ange of cells). Calculations for year totals are provided as well. NOTE: units to be produced will be the number of shirts to be old (not the shirts to be purchased from the shit purchases budget) Msathed by Doug Roberts. Apaatachian State Unversty Town. Aher a number of unsuccesstul ahempts at getting a job in his dociplne, Michael decided to go into business for Fimself, in thriking about his baniness ventire, Michowl determined that he had four crteria for the new business. - Fint he wanted to do screesing that he woul enjy. - Seccond, he wanded a tuahess that would give back to the communty. - Third, he warled a business that would grow and be more successiful every yoar. - Fourth, reateng that he was going to have to work very hard, Michael wanted a businoss that would gonsrate sulficient net incorre eash fow scroen procest. The closest place regured a tre to a cly 100 mles away to vist "Shirts and More." Michaet had worked as a part-time employee at Shirts and More while he was in high school and had emsiconed owning such a shop. He realied that a sweatshirt shop in Campus-4 fown had the give him terms of 50 percert due upon putchase and 50 percent due the quarter folowing the purshase, Michaet wil purchase the folowirg equipment Jamary 1,201 fercentagel percent of the quarters purchas es ip to poid in the quarter folowing the purshase. Michael also learned from taking wth Jayne that the ink used in the silk-screen process costs approximately 5X (see INPUTS worksheet for amount] pertshit. Knowing that the sik-screen process is somewhat tabor intensive, Michael plans to hire skx colege students to help with the silk-screen process with each one working an average of 20 hours per week for 50 weeks during the year. The wage rate to be paid wil be $X Isee iNPUTS worksheet for amount an hour: In addition, Michael wil neod one person to take orders, bill customers, and operate the cash register, Cary Sue Smith, who is currently Orector of Student Development at Eastern University, has approached Michael about a job in salos. Cary Sue knows the officers of all of the student organizations on campus (potential customers). In addation, she is very active in the community (more potential customers). Michael thinks Cary Sue can tring in a lot of bushess. In addition she also has the clerical skils needed for the position. Because of her contacts, Michael is wiling to pay Cary Sue $XX isee INPUTS worksheet for amount] per month plus a commission of XX [see INPUTS worksheet for amount] percent of sales. Michael estimates Cary Sue WII spend XOX fsee INPUTS worksheet for amount] percent of the workday focusing on sales, while the remaining XX [see INPUTS worksheet for amountl percent wit be spent on clorical and administrative duties. Michael realizes that he wil have dificulty in finding a person skilled in computer graphics to generate the designs to be printed on the shirts. Jayne recently hired a graphics designer in that position for Shirts and More at a fate of \$XX [eff? INPUTS worksheet for amount] per month plus $ XXX [see INPUT'S worksheet for amount] for each shirt printed. Michael believes he can find a university graphics design student to work for the same rate Jayne is paying her designer. Wichaef was fortunate in finding a commercial bulding for rent near the University and the downtown area. The landlord requires a one-year lease. Ashough the monthly rent of SXOX [see INPUTS worksheet for amount] is more than Michael had anticlpoted paying. the buiding is nice, has adequate parking, and there is room for expansion. Michael anticipates that XX [see INPUTS worksheot for amount] percent of the building wil be used in the sikscreen process while [see iNPUTS workshet for amountl percent will be used for sales. Michaels fraternity brothers have encouraged him to advertise weekly in the University student newspaper as well as the local paper. Upon inquiring Michael found that a 33 ad in the student paper and a weekly ad in the kocal newspaper wil cost him $X Isee INPUTS worksheet for amount] per woek. Michael wants to sel a large number of quality shirts at a reascnable cost. He estimates the sellng price of each custornized shirt to be $0 Isee INPPTS worksheet for amount]. Jayne has suggested that he should ask customers to pay for XX [see INPUTS worksheet for amount] percent of their purchases in the quarter purchased and pay the addeional XXK [see INPUTS worksheet for amount] porcent in the quarter folowing the purchases. Afler talking to the insurance agent and the property valuation administrator in his munkipasity, Michael estimates that the property taxes and insurance on the machinery wil cost \$XXX (see inPurs worksheet for amound) annually, While property tax and insurance on display furniture and cash register wil total SX0K [see thiPuTS worksheet for amound annualy. Seeing how determined his son was to become an entrepreneur, Michacl's father offered to ce-sign a note for an amount up to 30 Isee iNPUTS worksheet for amount] to help Michael open his sweatshirt shop, Swoats Gaiore. However, when Michael and his father approached the loan officer at First Guarantee Bank, the ban officer asked Michael to produce the foltowing budgots for 201 : - Sales budget - Schedule of expected colections from customers - Stirt purchases budget - Schedula of expected payments for purchases - S5.-screen tabor budget. - Selling 8 adminis trative expense budget - Sat-scroen ovorhesd budgot - Budpeted income statement -Cash budget - Budgeted batance sheet The ban officer advised Michael that the interest rate on a 12 -month loan would be XX/see INPUTS worksheet for amount] percent. Michael expects the ban to be taken out January 1,201. Michael has estimated that his income tax rate will be Xo (see iNPUTS worksheet for amount] percent. He expects to pay the fotal tax due when his returns are fled in the following year. REVENuE ASSUVPTIONS Cotemated number of skirse bo be seld in the first five quarters: Fint quater pear : Sacond cubser vear Fouth curater yours Scheduin ef coltections. cost assumb nons: Purthaing assimplons Schedule for peymert ef owestatils Diret inbor costa hatsitips Wor cosi ASSUMPTiows Cary Suek compenation Monthy arary Ament if whas Graphile deslgner costh Mintery tout Par thit tett Eullaing rental Monaly rent of buld ing Oether tests: Anhual posetry tares and insurace on machinery ivales cost per ahit tamenance cost pershit Mamiencance monthy fred cost Oener likes: Dencet than annen! calemu rate en wen thementer tore 5. 1,00000 2000 10.000 20.000 12,000 10,000 255. ( 900 22s 35% 65% 11100 0,12 7800 60000 cheprin tar nafe a E F D Complete the Seling and Administrative Expense Budget. REMiNDER: Make sure every cel is either a formula or a reference o another cell (or range of colls). Depreciation is given to you. Calculations for year totals are provided as well. 8. Complete the Silk-screen Overhead Budget. REMINDER: Make sure every cell is either a formula or a reference to another cell (or range of cells). Depreciation is given to you, Calculations for year totals are provided as well. NOTE/HINT: your variable costs here should be based upon the number of shirts sold, NOT the number of shirts nurchased 9. Using the information found in the case and the previous budgets, complete the Budgeted Income Statement. REMINDER: Make sure every cell is either a formula or a reference to another cell (or range of cells). The cell references for cost of goods sold are given to you - take time to see where this comes from but do not change it. 10. Using the information found in the case and the previous budgets, complete the Cash Budget. REMINDER: take sure every cell is either a formula or a reference to another cell (or range of cells). The cell reference for omowings in quarter 1 is given to vou: no other borrowing or repavments are made. 11. Using the information contained in the case and the previous budgets, complete the Budgeted Balance Sheet. REMINDER: Make sure every cell is elther a formula or a reference to another cell (or range of cells) Cell references for equlpment, accumulated depreclation, interest payable, taxes payable are provided; the formula to calculate capital is provided too. Examine these to understand where the numbers come from but. Jo not chance them. NOTE: it "Michael Woods, Caplar" is negative, that is olay; although not good, equity can be negative. SWEATS GALORE \begin{tabular}{l} \text {\( Budgeted Balance Sheet } \) \\ \text {\( December 31, 20X1 } \) \end{tabular} \] Assets Cash Accounts receivable Sweatshirt Inventory Equlpment Less: Accumulated depreciation Total assets Liabilities and Owner's Equity Acoounts payable Note payable interest payable Taxes payable Total liabilties Michael Woods, Capital Total liabilies and owner's equity 2. Complete the Sales Budget for the year ending 20X1. REMINDER: Make sure every cell is eather a formula or a reference to another cell (or range of cells) Quarter t is done for you. Calculations for year totals are 3. Complete the Schedule of Expected Collections from Customers. REMINDER: Make sure every cell is either a fomula or a reference to another cell (or range of cells). Collections related to first quarter sales are glven 4. Michael leamed from talking wh Jayne that the supplier is so focused on making qualify sweatshirts that many times the shirts are not avalable for several days. She encouraged Michael to maintain an ending inventory of shirts equal to XX [see INPUTS wonsheet for amount] percent of the next quarter's sales. REMINDER: Make sure every cell is either a fomula or a reference to another cell (or range of celis) - except for beginning inventory in quarter 1 which is zero (which is glven to you) Calculations for year totals are provided as well. 5. Complete the Schedule of Expected Payments for Purchases. REMINDER: Make sure every cell is either a fomula or a reference to another cell (or range of cells). Complete the Sik-screen Labor Budget. REMINDER: Make sure every cell is either a formula or a reference to another cell (or ange of cells). Calculations for year totals are provided as well. NOTE: units to be produced will be the number of shirts to be old (not the shirts to be purchased from the shit purchases budget)