please help me study! I will have a problem somular to this for a final exam! thank you so mich!

Required: You need to prepare a comprehensive 6-month budget, including supporting schedules and a report for the period January 1, 2020 to June 30, 2020 for Gray, Inc (a fictional company). This project must include: Sales Forecast and Budget. Cash Receipts budget. Purchase budget. Cash Purchases Disbursements budget..... Operating Expense budget.. Summary Cash budget... Budgeted Income Statement.. Budgeted Balance Sheet Notes and Hints 1. All 8 parts must be submitted before I grade the project. 2. The schedules/budgets must be prepared on Excel. The templates I have prepared must be used as is. 3. Part of this project is demonstrating proper use of Excel. You may only input a "hard number" into a pink cell. All yellow cells must be formula based (no numbers included - use appropriate cell referencing). 4. I recommend constructing the formulas for one month and then copying the formulas over to the remaining months. 5 Rounding is encouraged and you may ignore interest and taxes. INFORMATION FOR HENRON, INC. BUDGET PROJECT 1. Gray, Inc. is a company that re-sells one product, a particularly comfortable lawn chair. An overseas contractor makes the product exclusively for Gray, so Gray has no manufacturing- related costs 2. As of 11/19, each lawn chair costs Gray $4 per unit. Gray sells each chair for $10 per unit. 3 The estimated sales (in units) are as follows: Nov 19 11,250 Dec 19 11,600 Jan 20 10,000 Feb 20 11,400 Mar 20 12,000 Apr 20 15,600 May 20 18,000 June 20 22,000 July 20 18,000 4. Per an existing contract, the cost of each chair is scheduled to increase by 5% on March 1, 2020. In addition, because of increasing costs of plastic webbing, the cost is anticipated to increase by an additional 5% on May 1, 2020. To offset these increases, the company plans to raise the sales price to $11.25 per unit beginning May 1, 2020. The sales forecast (i.e. estimated sales in units) takes this price increase into account 5. Thirty percent of any month's sales are for cash, and the remaining 70% are on credit. Thirty percent of the credit sales are collected in the month of sale, 50% are collected in the following 5. Thirty percent of any month's sales are for cash, and the remaining 70% are on credit. Thirty percent of the credit sales are collected in the month of sale, 50% are collected in the following month, and 16% are collected in the second month after the sale. The remaining receivables are deemed uncollectible. Bad debts are written off in the month the debt is deemed uncollectible (e.g. if the sale is made in January and is not collected by the end of March, it is written off in March.) No accrual for estimated bad debts is made in the month of sale. 6. The firm's policy regarding inventory is to stock (i.e. have in ending inventory) 40% of the forecasted demand in units (i.e., estimated sales) for the next month. Gray uses the first-in, first-out (FIFO) method in accounting for inventories. 7. Forty percent of the inventory purchases are paid for in the month of purchase and the remaining 60% are paid in the following month (i.e. all of the previous month's Accounts Payable are paid off by the end of any month.) 8. Per a prior contract, a cash payment of $50,000 for equipment previously purchased is due in January. Another payment of $30,000 is due in February. Depreciation on the equipment previously purchased is included in the overhead cost detailed in item 11 below. Also, dividends of $12,000 are to be paid in March. 9. Monthly operating expenses consist of the following (if these are cash expenses, they are paid when incurred) Salaries and Wages $3,000 Sales Commissions 7% of sales revenue Rent $8,000 Other Variable Cash Expenses 16% of sales revenue Supplies Expense: See note $2,000 Other. See note $48,000 Note: Other general and administrative overhead is expected to be $48,000 per month. Of this amount, $24,000 represents depreciation and other non-cash expenses. The company maintains on hand one month's worth of supplies. 10. The company must maintain a minimum cash balance of $15,000. Borrowing can make up shortfalls. For simplicity, assume that the bank will only lend (and accept repayments) in $1,000 increments. Ignore interest on the loan in your calculations, but minimize the amount borrowed and pay off any loans as soon as possible. 11. Cash on hand as of December 31, 2019 is expected to be $15,000. In addition, there will be no notes payable as of this date. 12. See below the other Balance Sheet accounts with their expected balances as of December 31, 2019 Supplies........ $ 2,000 Property, Plant and Equipment.... 1,000,000 Accumulated Depreciation.... 526,475 Common Stock 200,000 Retained Earnings 272 811 Gray, Inc Sales Budget For the 6 mos ending June 20 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Budged unit sales Selling price per unit Total Sales Apr 20 May 20 June 20 6 mor Cash Sales % Credit Sales % Cash Sales Credit Sales Total Sales Current month A/R Collections month prior A/R Collections months prior A/R Collections incollectible Gray, Inc. Cash Collections For the 6 mos ending June 20 Jan 20 Feb 20 Mar 20 Apr 20 May 20 June 20 6 mos total 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Current month cash Sales Current month A/R Collections 1 month prior A/R Collections 2 months prior A/R Collections Total cash collections Bad Debt Expense Desired ending inventory % Gray, Inc. Purchase Budget For the 6 mos ending June 20 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 June 20 6 mas total 40 41 42 43 44 45 Budged unit sales 46 Add desired ending inventory 47 Total needs 48 Less Beginning Inventory 49 Required Purchases 50 51 Cost per unit 52 Purchases 53 54 % Paid in Month of Purchase 55 % Paid in Month after Purchase 56 June 20 6 mos total 57 58 Gray, Inc. 59 Schedule of Budgeted Cash Disbursements for Merchandise Purchases 60 For the 6 mos ending June 20 61 62 Jan 20 Feb 20 Mar 20 Apr 20 May 20 63 Cash purchases 54 1 month prior A/P Collections 55 Cash disbursements for merchandise purch 56 57 58 Fixed Operating expenses: Variable Operating Expenses 69 Salaries and Wages Sales Commissions, % of Revenue 0 Rent Other Variable Cash Expenses, % of Revenue 1 Supplies Expense 2 Other - Overhead Other - Depreciation Gray, Inc Operating Expense Budget For the 6 mos ending June 20 Feb 20 Mar 20 Jan 20 Apr 20 May 20 June 20 6 mos total 75 76 77 78 79 80 Salaries and Wages 81 Sales Commissions 82 Rent 83 Other Variable Cash Expenses 84 Supplies Expense 85 Other - Overhead 86 Other - Depreciation 87 Bad Debt Expense 88 Total operating expenses 89 Depreciation and noncash items 90 Bad Debt Expense 91 Cash disbursements for operating expenses 92 93 Equipment payment - January 94 Equipment payment - February 95 Dividends - March 96 Minimum Monthly Cash Budget Gray, Inc Cash Budget For the 6 mos ending June 20 Jan 20 Feb 20 Mar 20 Apr 20 May 20 June 20 6 mos total 98 99 100 101 102 103 Cash balance, beginning 104 Add collections from customers 105 Total cash available 106 Less disbursements: 107 Cash disbursements for merchandise purch 108 Cash disbursements for operating expenses 109 Equipment purchases 110 Dividends 111 Total cash disbursements 112 Excess of receipts over disbursements 113 Financing Borrowing note Repayments-note 116 Total financing 117 Cash balance, ending 114 115 D E F G H Feb 20 Mar 20 Apr 20 May 20 June 20 Total B 123 124 Jan 20 125 Sales, net 126 Cost of goods sold: 127 Gross margin 128 Total operating expenses 129 Net Income 130 131 Gray, Inc. 132 Budgeted Balance Sheet 133 6/30/2020 134 135 Assets 136 Current Assets: 137 Cash 138 Accounts receivable 139 Supplies 140 Merchandise Inventory 141 Plant and Equipment 142 Buildings and Equipment 143 Accumulated Depreciation 144 Total assets 145 146 Liabilities and Equity 147 Accounts payable 148 Capital stock 149 Retained earnings