The Excel worksheet form that appears below is to be used to recreate the Review Problem related to Mynor Corporation. Download the workbook containing this form from Connect, where you will also receive instructions about how to use this worksheet form. H B D E F 1 Chapter 8: Applying Excel 2 3 Data Year 2 Quarter Year 3 Quarter 4 2 3 4 1 2 5 Budgeted unit sales 40.000 60.000 100,000 50,000 70,000 80,000 6 7 Selling price per unit $8 8. Accounts receivable, beginning balance $65,000 9. Sales collected in the quarter sales are made 75% 10 Sales collected in the quarter after sales are made 25% 11 Desired ending finished goods inventory is 30% of the budgeted unit sales of the next quarter 12. Finished goods inventory, beginning 12.000 units 13. Raw materials required to produce one unit 5 pounds 14. Desired ending inventory of raw materials is 10% of the next quarter's production needs 15. Raw materials inventory, beginning 23.000 pounds 16. Raw material costs 50 80 per pound 17. Raw materials purchases are paid 60% in the quarter the purchases are made 18 and 19 Accounts payable for raw materials, beginning balance 40% in the quarter following purchase $81,500 20 21 Enter a formula into each of the cells marked with a ? below 22 Review Problem: Budget Schedules 23 24 Construct the sales budget Year 2 Quarter 25 Year 3 Quarter 1 2 3 4 26 Budgeted unit sales 2 ? ? 27 Selling price per unit ? ? ? ? ? ? 2 28 Total sales ? ? ? ? ? 29 2 ? ? 2 30 Construct the schedule of expected cash collections 31 Year 2 Quarter 1 32 Beginning balance accounts receivable 2 3 4 Year ? 33 First quarter sales ? 2 ? 34 Second-quarter sales ? 35 Third-quarter sales ? 2 ? 36 Fourth quarter sales ? ? 37 Total cash collections ? ? ? ? ? Year 2 Quarter 2 3 1 4 Year ? ? ? ? 2 ? ? ? ? ? 2 2 2 ? ? ? ? ? 1 4 Year Year 3 Quarter 2 1 2 Year 2 Quarter 2 3 ? ? ? 7 7 2 ? ? ? 2 ? ? ? 2 ? 7 ? ? ? 2 ? ? ? 2 ? ? ? 2 7 29 30 Construct the schedule of expected cash collections 31 32 Beginning balance accounts receivable 33 First quarter sales 34 Second-quarter sales 35 Third-quarter sales 36 Fourth quarter sales 37 Total cash collections 38 39 Construct the production budget 40 41 Budgeted unit sales 42 Add desired ending finished goods inventory 43 Total needs 44 Less beginning finished goods inventory 45 Required production in units 46 47 Construct the raw materials purchases budget 48 19 Required production (units) 50 Raw materials required to produce one unt (pounds) 51 Production needs pounds) 52 Add desired ending inventory of raw materials (pounds) 50 Total needs pounds) 54 Loss beginning inventory of raw materiais pounds) 55 Raw materials to be purchased (pounds) 56 Cost of raw materials per pound 57 Cost of raw materials to be purchased 58 3 Construct the schedule of expected cash payments 60 61 Beginning balance accounts payable 62 First quarter purchases 5) Second quarter purchases 54 Third quarter purchases 65 Fourth quarter purchases 66 Total cash disbursements 57 Chapter med form Chapter 1 Year 2 Quarter 2 3 2 Year 3 Quarter 4 Year 1 2 ? 2 2 2 2 ? 2 ? 7 7 2 ? 2 ? ? ? ? ? ? 2 2 7 ? ? ? ? ? 7 2 2 ? ? ? 2 2 2 ? 2 7 ? ? ? ? ? 1 Year 2 Quarter 2 3 4 Year 2 ? ? 2 2 ? ? ? ? 2 ? ? 2 7 ? ? Chapter Regel You should proceed to the requirements below only after completing your worksheet. Page 391 Required: 1. Check your worksheet by changing the budgeted unit sales in Quarter 2 of Year 2 in cell C5 to 75,000 units. The total expected cash collections for the year should now be $2,085,000. If you do not get this answer, find the errors in your worksheet and correct them. Have the total cash disbursements for the year changed? Why or why not? 2. The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to S7. The marketing manager would like to use the following projections in the budget: 1 Year 2 Quarter 2 3 4 Budgeted unit sales 50,000 70,000 120,000 80,000 Selling price per unit $7 Year 3 Quarter 2 90,000 100,000 1 a. What are the total expected cash collections for the year under this revised budget? b. What is the total required production for the year under this revised budget? c. What is the total cost of raw materials to be purchased for the year under this revised budget? d. What are the total expected cash disbursements for raw materials for the year under this revised budget? e. After seeing this revised budget, the production manager cautioned that due to the limited availability of a complex milling machine, the plant can produce no more than 90,000 units in any one quarter. Is this a potential problem? If so, what can be done about it