please help me with this project using the excel pages provided

BUDGETS Jay Rexford, president of Photo Artistry Company, was just conduding a budget meeting with his senior staff. It was November of 20x1, and the group was discussing preparation of the firm's master budget for 20x2. "I've decided to go ahead and purchase the industrial robot we've been talking about. Well make the acquisition on January 2 of next year, and I expect it will take most of the year to train the personnel and reorganize the production process to take full advantage of the new equipment." In response to a question about financing the acquisition, Rexford replied as follows: "The robot will cost $950,000. There will also be an additional $50,000 in ancillary equipment to be purchased. Well finance these purchases with a one-year $1,000,000 loan from Shark Bank and Trust Company. I've negotiated a repayment schedule of four equal installments on the last day of each quarter. The interest rate will be 10 percent, and interest payments will be quarterly as well." With that the meeting broke up, and the budget process was on. Photo Artistry Company is a manufacturer of metal picture frames. The firm's two product lines are designated as S (small frames; 5 x 7 inches) and L (large frames; 8 x 10 inches). The primary raw materials are flexible metal strips and 9-inch by 24-inch glass sheets. Each S frame requires a 2-foot metal strip; an L frame requires a 3-foot metal strip. Allowing for normal breakage and scrap glass, the company can get either four S frames or two L frames out of a glass sheet. Other raw materials, such as cardboard backing, are insignificant in cost and are treated as indirect materials. Emily Jackson, Photo Artistry's controller, is in charge of preparing the master budget for 20x2. She has gathered the following information: 1. Sales in the fourth quarter of 20x1 are expected to be 50,000 S frames and 40,000 L frames. The sales manager predicts that over the next two years, sales in each product line will grow by 5,000 units each quarter over the previous quarter. For example, S frame sales in the first quarter of 20x2 are expected to be 55,000 units. 2. Photo Artistry's sales history indicates that 60 percent of all sales are on credit, with the remainder of the sales in cash. The company's collection experience shows that 80 percent of the credit sales are collected during the quarter in which the sale is made, while the remaining 20 percent is collected in the following quarter. For simplicity, assume the company is able to collect 100 percent of its accounts receivable. 3. The S frame sells for $10, and the L frame sells for $15. These prices are expected to hold constant throughout 20x2. 4. The production manager attempts to end each quarter with enough finished-goods inventory in each product line to cover 20 percent of the following quarter's sales. 5. Photo Artistry makes an attempt to end each quarter with 20 percent of the glass sheets needed for the following quarter's production. The company wants to have an inventory of 10,400 sheets at the end of 20x2. 6. Metal strips are purchased locally and the company buys them on a just-in-time basis. Inventory of metal strips is negligible. 7. All direct-material purchases are made on account, and 80 percent of each quarter's purchases are paid in cash during the same quarter as the purchase. The other 20 percent is paid in the next quarter. 8. Indirect materials are purchased with cash as needed. Work-in-process is negligible. 9. Projected manufacturing costs in 20x2 are as follow: S Frame L Frame $2.00 $3.00 2.00 Direct material: Metal strips: S: 2 ft. @ $1 per foot L: 3 ft @ $1 per foot Glass sheets: S: 1. sheet @ $8 per sheet L: V sheet @ $8 per sheet Direct labor: 1 hour @ $20 Manufacturing overhead: 1 hour @ $10 Total manufacturina cost per unit 4.00 2.00 2.00 1.00 $7.00 1.00 $10.00 10. Manufacturing equipment depreciation is $20,000 per quarter. 11. Photo Artistry's quarterly selling and administrative expenses are $100,000, paid in cash. The company rents all its administrative office space and equipment. Thus, there is no depreciation related to the administrative functions of the company. 12. The $1,000,000 loan from Shark Bank and Trust Company will be received on January 1, 2002. Photo Artistry will use all the money immediately to purchase new equipment. Interest payments will be made at the end of each quarter. Loan principal will be paid in four equal instaliments of $250,000 at the end of each quarter. 13. Jackson anticipates that dividends of $50,000 will be dedared and paid in cash each quarter. 14. Photo Artistry's projected balance sheet as of December 31, 20x1, follows: $ 95,000 132,000 Cash Accounts receivable Inventory: Raw material Finished goods Plant and equipment, net Total assets Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 59,200 167,000 8,000,000 $ 8,453,200 $ 99,400 5,000,000 3,353,800 $ 8.453.200 Required: 1. Prepare Photo Artistry Company's master budget for 20x2 by completing the following schedules: Schedule 1 - Sales budget with a schedule of expected cash collections Schedule 2 - Production budget Schedule 3 - Direct materials budget with a schedule of cash disbursements for materials Schedule 4 - Direct labor budget Schedule 5 - Manufacturing overhead budget Schedule 6 - Ending finished goods inventory budget Schedule 7 - Selling and administrative expenses budget Schedule 8 - Cash budget Schedule 9-Budgeted Income Statement Schedule 10 - Budgeted Balance Sheet 2. Prepare a memo for Photo Artistry Company identifying issues that management should consider in order to improve the profitability of the company provide some recommendations. Give careful consideration to this answer as it counts 20% of your grade. Additional Instructions 1. Download the excel file on Blackboard. Use a different worksheet for each budget or budgeted financial statement. Your Excel file should have a total of ten worksheets. Requirement 2 (above) should be in a Word document. 2. Each budget or financial statement should indude appropriate headings and labels. Make sure all the schedules look professional and are easy to understand. 3. Submit both files electronically on Blackboard on or before 6:00pm, November 8, 2021. Remember to indude your name in your documents. Late project will NOT be accepted. 4. This is an individual project. 5. Follow these instructions carefully to receive the highest grade possible. Useful Hints Present all your assumptions (i.e., % of credit sales collected during the quarter) at the bottom of each schedule. Use absolute references so you don't have to type the same number over and over. Each budget should include a column for each quarter and a column showing the total for the entire year. Sales budget - There should be two sections in this budget; one showing sales of S frames and another showing sales of L frames. Indude a row showing total sales revenues (S frames +L frames). Schedule of expected cash collections (sales budget) should be prepared using the following format: cash sales + cash collections from credit sales made during the current quarter + cash collections from credit sales made during the previous quarter = total cash receipts Production budget - There should be two sections in this budget; one for the S frames and another for the L frames. Direct materials budget - Determine the company's total metal strip needs first and then the total cost of metal strips to be purchased. Do the same with the glass sheets. Thus, there should be five sections in this budget: metal strips for S frames, metal strips for L frames, glass for S frames, glass for L frames, and the schedule of cash disbursements for materials. Dont forget to indude a row showing total material purchases (metal + glass) before the schedule of cash disbursements. Schedule of schedule of cash disbursements for materials (direct materials budget) should be prepared using the following format: cash payments for purchases during the current quarter + cash payments for purchases during the previous quarter = total cash payments for raw-material purchases 26 Quarter 2020x2 3Q20x2 27 1Q20x2 4020x2 Year 20x2 28 Cash sales 29 plus cash collections - current quarter 30 plus cash collections - previous quarter 31 Total cash collections 32 33 34 35 36 1 2. Photo Artistry Company Production Budget For the year ended December 31, 20x2 3 4 Quarter 2020x2 4Q20x1 1020x2 3Q20x2 4020x2 Year 20x2 5 6 S-Frames 7 Budgeted sales in units (Schedule 1) 8 Add desired ending inventory of finished goods 9 Total needs 10 Less beginning inventory of finished goods 11 Required production 12 13 L-Frames 14 Budgeted sales in units (Schedule 1) 15 Add desired ending inventory of finished goods 16 Total needs 17 Less beginning inventory of finished goods 10 Required production 19 20 1 2 Photo Artistry Company Direct Materials Budget For the year ended December 31, 20x2 3 5 Quarter 1020x1 102082 2020x2 3020x2 1020x2 Year 21:2 6 ? Metal Strips. S-Frames 8. Required production in units (Schedule 21 Raw materials needed in feet) 30 Metal strip needs for S-frames Metal Suips. L-Frames 12 Required production in units Schedule 2) 13. Raw materiais needed fin feet) 14 Metal strip needs for L frames 15 Total Metal Strip Needs 16 Total metal strip needs 11 Cost of metal strips Iper foot) 13 Total cost of metal strips to be purchased 19 Glass Sheets - S Frames 20 Required production in units (Schedule 21 2 Raw materials needed in sheets) 22 Glass sheet needs for S-frames 20 Glass Sheets - Frames 24 Required production in units Schedule 27 25 Ray materials needed in sheets) 26 Glass sheet needs for L-frames 21 Total glass sheet needs 26 Total glass sheet needs 23 Add desired ending inventory of glass sheets 30 Total glass sheet needs 31 Less beginning inventory of glass sheets 32 Glass sheets to be purchased Cost of glass (per sheet) 34 Total cost of glass sheets to be purchased as Totalraw material purchases 36 37 38 Percentage of purchases paid for in the period of purchase 39 Percentage of purchases paid for in the period after purchase 40 1 2 Photo Artistry Company Direct Labor Budget For the year ended December 31, 20x2 3 4 5 Quarter 2 3 6 Year 7 Required production in units (Schedule 2) 8 Direct labor hours per unit 9 Total direct labor hours needed 10 Direct labor cost per hour 11 Total direct labor cost 12 13 14 1 2. Photo Artistry Company Manufacturing Overhead Budget For the year ended December 31, 20x2 3 4 5 Quarter 6 2 3 4 Year 7 Budgeted direct labor hours (Schedule 4) 8 Overhead rate 9 Total manufacturing overhead 10 Less depreciation 11 Cash disbursement for MOH 12 13 14 Total manufacturing overhead (a) 15 Budgeted direct labor hours (6) 16 Predetermined overhead rate for the year (a) (b) 17 18 19 1 2 Photo Artistry Company Ending Finished Goods Inventory Budget For the year ended December 31, 20x2 3 Cost Total 16 per feet per sheet per hour per hour 19 15 Production Cost per S-Frame Quantity Metal strips feet 7 Glass sheets sheet 8 Direct labor hours Manufacturing overhead hours 10 Unit product cost 11 12 Budgeted finished good inventory of S-Frames: 13 Ending finished goods inventory in units (Schedule 2) Unit product cost (see above) Ending finished goods inventory in dollars 14 15 16 Total 17 18 Production Cost per L-Frame 19 Metal strips 20 Glass sheets 21 Direct labor 22 Manufacturing overhead 23 Unit product cost Quantity feet sheets hours hours Cost per feet per sheet per hour per hour 24 26 25 Budgeted finished good inventory of L-Frames: Ending finished goods inventory in units (Schedule 2) Unit product cost (see above) Ending finished goods inventory in dollars 27 28 29 30 Finished Inventory balance (S-frames + L-frames) 31 1 2 Photo Artistry Company Sales and Administrative Expense Budget For the year ended December 31, 20x2 3 4 5 Quarter 2 6 1 3 th Year 7 Budgeted S&A expenses 8 Cash disbursements for S&A expenses 9 10 11 Photo Artistry Company Cash Budget For the year ended December 31, 20x2 5 Quarter 6 Schedule 1 2 3 Year 12 3 7 Cash balance, beginning 8 Add receipts 9 Collections from customers 10 Total cash available 11 Less disbursements Direct materials 13 Direct labor Manufacturing overhead 15 Selling and administrative 16 Dividends 17 Equipment purchase 18 Total disbursements 19 Excess (deficiency) of cash over disb. 4 5 14 7 20 Financing 21 Borrowings 22 Repayments 23 Interest 24 Total financing 25 Cash balance, ending 26 1 2 Photo Artistry Company Budgeted Income Statement For the year ended December 31, 20x2 3 4 5 Schedules 6 Sales 1 1,6 7 Less cost of goods sold 8 Gross Margin 9 Less selling and administrative expenses 10 Net operating income 11 Less interest expense 12 Net income 7 8 13 1 2. Photo Artistry Company Budgeted Balance Sheet For the year ended December 31, 20x2 3 4 5 Assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable (raw mat.) Total Liabilities 7 9 6 Current assets Cash 8 Accounts receivable Raw materials inventory 10 Finished goods inventory 11 Total current assets 12 Plant and equipment 13 Buildings and equipment Accumulated depreciation 15 Plant and equipment, net 16 Total assets 17 Stockholders' equity Common stock, no par Retained earnings Total stockholders' equity 14 Total liab, and stockholders' equity 18 19 20