Sheet 1: Sheet 2:

Regression Results Present the regression results for estimation of maintenance and utility costs.

Include the following two budgets on the second worksheet, clearly labeled:

Sheet 3:

Include the following two budgets on the third worksheet, clearly labeled:

Sheet 4:

Include the following two budgets on the fourth worksheet, clearly labeled:

Sales Budget

Cash Collections Budget

Prepare a sales budget for each quarter and for the year in total.

Prepare a cash collections budget for each quarter and for the year in total. List cash collections in the following order: First-quarter sales, second-quarter sales, third-quarter sales, fourth-quarter sales, and total cash collections.

Shirts Purchase (Direct Material Purchase) Budget

Schedule of Expected Cash Payments for Shirts Purchases

Prepare a shirts purchase budget, in units and in total dollars, for each quarter and for the year in total. (Note: Production is the same as sales, i.e., no finished goods inventory)

Prepare a schedule of cash payments for shirts purchases for each quarter and for the year in total. List cash disbursements in the following order: First-quarter purchases, second-quarter purchases, third-quarter purchases, fourth-quarter purchases, and total cash payments.

Silk-Screen Labor Budget

Silk-Screen Overhead Budget

Prepare a labor budget, in labor-hours and in total dollars, for each quarter and for the year in total.

Prepare an overhead budget for each quarter and for the year in total. List the

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Sheet 5:

overhead items in the following order: Variable Overhead Costs, including ink, maintenance, utilities, graphics design, and subtotal of variable costs; Fixed Overhead Costs, including rent, maintenance, utilities, graphics design, property taxes and insurance, depreciation, and subtotal of fixed costs; and finally, Total Overhead Costs.

Include the following two budgets on the fifth worksheet, clearly labeled:

Selling and Administrative Expenses Budget

Prepare a selling and administrative expenses budget for each quarter and for the year in total. List the cost items in the following order: Variable S&A Expenses, including sales commissions and subtotal of variable expenses; Fixed S&A Expenses, including advertising, rent, salaries, property taxes and insurance, depreciation, and subtotal of fixed expenses; and finally, Total Selling and Administrative Expenses.

Prepare a cash payments budget and combined cash budget for each quarter and for the year in total. List clearly each type of cash payments (for shirts purchases, labor, overhead, and S&A, and so on). Note: Depreciation does not require a cash payment.

Sheet 6:

Include the following on the sixth worksheet, clearly labeled:

Cash Payments Budget and Combined Cash Budget

Budgeted Income Statement

Target Profit Analysis

Prepare a budgeted income statement

through net operating income

(interest expense excluded) for 2021 in

the contribution margin format.

Use Excel formula to compute how many shirts Ethan would have to sell to earn a target net operating income of $150,000 for 2021.