Please help!
NABAR MANUFACTURING
Estimated Balance Sheet
30-Jun-15
Assets
Liabilities and Equity
Cash
40,000
Accounts payable
51,400
Accounts receivable
249,900
Income taxes payable
10,000
Raw materials inventory
35,000
Shirt-term notes payable
24,000
Finished goods inventory
241,080
Total current liabilities
85,400
Total Current assets
565,980
Long-term note payable
300,000
Equipment, gross
720,000
Total liabilities
385,400
Accumulated depreciation
(240,000)
Common stock
600,000
Equipment, net
480,000
Retained earnings
60,580
Total stockholders' equity
660,580
Total Assets
1,045,980
Total liabilities and equity
1,045,980
To prepare amaster budget for July, August and September 2015, managementgathers the following information: a. Sales were 20,000 units in June. Forecasted salesin units are as follows: July, 21,000; August, 19,000;September, 20,000; October, 24,000. The product's sellingprice is $17 per unit and its total product cost is $14.35 perunit. b. Company policy calls for a given month's endingfinished goods inventory to equal 70% of the next month'sexpected unit sales. The June 30 finished goods inventoryis 16,800 units, which does not comply with the policy. c. Company policy calls for a given month's endingraw materials inventory to equal 20% of the next month'smaterial requirements. The June 30 raw materials inventoryis 4,375 units (which also fails to meet the policy). Thebudgeted September 30 raw materials inventory is 1,980units. Raw materials cost $8 per unit. Each finished unitrequires .50 units of raw materials. d. Each finished unit requires 0.50 hours of directlabor at a rate of $16 per hour. e. Overhead is allocated based on direct labor hours.The predetermined variable overhead rate is $1.35 per direct labor hour. Depreciation of $20,000 per month istreated as fixed factory overhead. f. Monthly general and administrative expensesinclude $9,000 administrative salaries and .9% monthly interest onthe long-term note payable. g. Sales representatives' commissions are 10% ofsales and are paid in the month of the sales. The sales manager'ssalary is $3,500 per month. h. The company expects 30% of sales to be for cashand the remaining 70% on credit. Receivables are collected in fullin the month following the sale (none is collected inthe month of the sale). i. All raw materials purchases are on credit, and nopayables arise from any other transactions. One month's rawmaterials purchases are fully paid in the next month. j. Dividends of $20,000 are to be declared and paid inAugust. k. Income taxes payable at June 30 will be paid inJuly. Income tax expense will be assessed at 35% in the quarter andpaid in October. l. Equipment purchases of $100,000 are budgeted forthe last day of September m. The minimum ending cash balance for all months is$40,000. If necessary, the company borrows enough cash using ashort- term note to reach the minimum. Short-term notesrequire an interest payment of 1% at each month-end (beforeany repayment). If the ending cash balance exceeds theminimum, the excess will be applied to repaying the short-termnotes payable balance. Prepare a masterbudget for NABAR Manufacturing for the period ending September2015.
Please help!
NABAR MANUFACTURING | ||||||||||
Estimated Balance Sheet | ||||||||||
30-Jun-15 | ||||||||||
Assets | Liabilities and Equity | |||||||||
Cash | 40,000 | Accounts payable | 51,400 | |||||||
Accounts receivable | 249,900 | Income taxes payable | 10,000 | |||||||
Raw materials inventory | 35,000 | Shirt-term notes payable | 24,000 | |||||||
Finished goods inventory | 241,080 | Total current liabilities | 85,400 | |||||||
Total Current assets | 565,980 | Long-term note payable | 300,000 | |||||||
Equipment, gross | 720,000 | Total liabilities | 385,400 | |||||||
Accumulated depreciation | (240,000) | Common stock | 600,000 | |||||||
Equipment, net | 480,000 | Retained earnings | 60,580 | |||||||
Total stockholders' equity | 660,580 | |||||||||
Total Assets | 1,045,980 | Total liabilities and equity | 1,045,980 | |||||||
| To prepare amaster budget for July, August and September 2015, managementgathers the following information: | ||||||||||||
| a. | Sales were 20,000 units in June. Forecasted salesin units are as follows: July, 21,000; August, 19,000;September, | |||||||||||
| 20,000; October, 24,000. The product's sellingprice is $17 per unit and its total product cost is $14.35 perunit. | ||||||||||||
| b. | Company policy calls for a given month's endingfinished goods inventory to equal 70% of the next month'sexpected | |||||||||||
| unit sales. The June 30 finished goods inventoryis 16,800 units, which does not comply with the policy. | ||||||||||||
| c. | Company policy calls for a given month's endingraw materials inventory to equal 20% of the next month'smaterial | |||||||||||
| requirements. The June 30 raw materials inventoryis 4,375 units (which also fails to meet the policy). Thebudgeted | ||||||||||||
| September 30 raw materials inventory is 1,980units. Raw materials cost $8 per unit. Each finished unitrequires | ||||||||||||
| .50 units of raw materials. | ||||||||||||
| d. | Each finished unit requires 0.50 hours of directlabor at a rate of $16 per hour. | |||||||||||
| e. | Overhead is allocated based on direct labor hours.The predetermined variable overhead rate is $1.35 per direct | |||||||||||
| labor hour. Depreciation of $20,000 per month istreated as fixed factory overhead. | ||||||||||||
| f. | Monthly general and administrative expensesinclude $9,000 administrative salaries and .9% monthly interest onthe | |||||||||||
| long-term note payable. | ||||||||||||
| g. | Sales representatives' commissions are 10% ofsales and are paid in the month of the sales. The sales manager'ssalary | |||||||||||
| is $3,500 per month. | ||||||||||||
| h. | The company expects 30% of sales to be for cashand the remaining 70% on credit. Receivables are collected in fullin | |||||||||||
| the month following the sale (none is collected inthe month of the sale). | ||||||||||||
| i. | All raw materials purchases are on credit, and nopayables arise from any other transactions. One month's rawmaterials | |||||||||||
| purchases are fully paid in the next month. | ||||||||||||
| j. | Dividends of $20,000 are to be declared and paid inAugust. | |||||||||||
| k. | Income taxes payable at June 30 will be paid inJuly. Income tax expense will be assessed at 35% in the quarter andpaid | |||||||||||
| in October. | ||||||||||||
| l. | Equipment purchases of $100,000 are budgeted forthe last day of September | |||||||||||
| m. | The minimum ending cash balance for all months is$40,000. If necessary, the company borrows enough cash using ashort- | |||||||||||
| term note to reach the minimum. Short-term notesrequire an interest payment of 1% at each month-end (beforeany | ||||||||||||
| repayment). If the ending cash balance exceeds theminimum, the excess will be applied to repaying the short-termnotes | ||||||||||||
| payable balance. | ||||||||||||
| Prepare a masterbudget for NABAR Manufacturing for the period ending September2015. | ||||||||||||
Related questions
The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017:
| ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2017 | |||||||
| Assets | |||||||
| Cash | $ | 59,000 | |||||
| Accounts receivable | 487,500 | ||||||
| Raw materials inventory | 93,010 | ||||||
| Finished goods inventory | 433,000 | ||||||
| Total current assets | 1,072,510 | ||||||
| Equipment, gross | 638,000 | ||||||
| Accumulated depreciation | (169,000 | ) | |||||
| Equipment, net | 469,000 | ||||||
| Total assets | $ | 1,541,510 | |||||
| Liabilities and Equity | |||||||
| Accounts payable | $ | 215,410 | |||||
| Short-term notes payable | 31,000 | ||||||
| Total current liabilities | 246,410 | ||||||
| Long-term note payable | 530,000 | ||||||
| Total liabilities | 776,410 | ||||||
| Common stock | 354,000 | ||||||
| Retained earnings | 411,100 | ||||||
| Total stockholdersâ equity | 765,100 | ||||||
| Total liabilities and equity | $ | 1,541,510 | |||||
To prepare a master budget for April, May, and June of 2017, management gathers the following information:
Sales for March total 25,000 units. Forecasted sales in units are as follows: April, 25,000; May, 17,000; June, 22,400; and July, 25,000. Sales of 259,000 units are forecasted for the entire year. The productâs selling price is $26.00 per unit and its total product cost is $21.65 per unit.
Company policy calls for a given monthâs ending raw materials inventory to equal 50% of the next monthâs materials requirements. The March 31 raw materials inventory is 4,650 units, which complies with the policy. The expected June 30 ending raw materials inventory is 5,900 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials.
Company policy calls for a given monthâs ending finished goods inventory to equal 80% of the next monthâs expected unit sales. The March 31 finished goods inventory is 20,000 units, which complies with the policy.
Each finished unit requires 0.50 hours of direct labor at a rate of $15 per hour.
Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.60 per direct labor hour. Depreciation of $39,710 per month is treated as fixed factory overhead.
Sales representativesâ commissions are 5% of sales and are paid in the month of the sales. The sales managerâs monthly salary is $4,900.
Monthly general and administrative expenses include $34,000 administrative salaries and 0.8% monthly interest on the long-term note payable.
The company expects 25% of sales to be for cash and the remaining 75% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale).
All raw materials purchases are on credit, and no payables arise from any other transactions. One monthâs raw materials purchases are fully paid in the next month.
The minimum ending cash balance for all months is $98,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum. Short-term notes require an interest payment of 1% at each month-end (before any repayment). If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance.
Dividends of $29,000 are to be declared and paid in May.
No cash payments for income taxes are to be made during the second calendar quarter. Income tax will be assessed at 40% in the quarter and paid in the third calendar quarter.
Equipment purchases of $149,000 are budgeted for the last day of June.
Required:
9. Budgeted income statement for the entire second quarter (not for each month separately).
10. Budgeted balance sheet.
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The management of Zigby Manufacturing prepared the followingestimated balance sheet for March, 2015: |
| ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2015 | |||||
| Assets | |||||
| Cash | $ | 54,000 | |||
| Accountsreceivable | 354,375 | ||||
| Raw materialsinventory | 100,495 | ||||
| Finished goodsinventory | 333,000 | ||||
| Total current assets | 841,870 | ||||
| Equipment,gross | 628,000 | ||||
| Accumulateddepreciation | (164,000) | ||||
| Equipment, net | 464,000 | ||||
| Total assets | $ | 1,305,870 | |||
| Liabilities and Equity | |||||
| Accountspayable | 212,195 | ||||
| Short-term notes payable | 26,000 | ||||
| Total current liabilities | $ | 238,195 | |||
| Long-term notepayable | 514,000 | ||||
| Total liabilities | 752,195 | ||||
| Common stock | 349,000 | ||||
| Retainedearnings | 204,675 | ||||
| Total stockholdersâ equity | 553,675 | ||||
| Total liabilitiesand equity | $ | 1,305,870 | |||
To prepare a master budget for April, May, and June of 2015,management gathers the following information. |
| a. | Sales for March total 22,500 units. Forecasted sales in unitsare as follows: April, 22,500; May, 19,500; June, 21,700; July,22,500. Sales of 254,000 units are forecasted for the entire year.The productâs selling price is $22.50 per unit and its totalproduct cost is $18.50 per unit. |
| b. | Company policy calls for a given monthâs ending raw materialsinventory to equal 50% of the next monthâs materials requirements.The March 31 raw materials inventory is 5,025 units, which complieswith the policy. The expected June 30 ending raw materialsinventory is 5,400 units. Raw materials cost $20 per unit. Eachfinished unit requires 0.50 units of raw materials. |
| c. | Company policy calls for a given monthâs ending finished goodsinventory to equal 80% of the next monthâs expected unit sales. TheMarch 31 finished goods inventory is 18,000 units, which complieswith the policy. |
| d. | Each finished unit requires 0.50 hours of direct labor at a rateof $10 per hour. |
| e. | Overhead is allocated based on direct labor hours. Thepredetermined variable overhead rate is $4.10 per direct laborhour. Depreciation of $30,790 per month is treated as fixed factoryoverhead. |
| f. | Sales representativesâ commissions are 6% of sales and are paidin the month of the sales. The sales managerâs monthly salary is$4,400. |
| g. | Monthly general and administrative expenses include $26,000administrative salaries and 0.5% monthly interest on the long-termnote payable. |
| h. | The company expects 30% of sales to be for cash and theremaining 70% on credit. Receivables are collected in full in themonth following the sale (none is collected in the month of thesale). |
| i. | All raw materials purchases are on credit, and no payables arisefrom any other transactions. One monthâs raw materials purchasesare fully paid in the next month. |
| J. | The minimum ending cash balance for all months is $54,000. Ifnecessary, the company borrows enough cash using a short-term noteto reach the minimum. Short-term notes require an interest paymentof 1% at each month-end (before any repayment). If the ending cashbalance exceeds the minimum, the excess will be applied to repayingthe short-term notes payable balance. |
| K. | Dividends of $24,000 are to bedeclared and paid in May. |
| l. | No cash payments for income taxes are to be made during thesecond calendar quarter. Income tax will be assessed at 40% in thequarter and paid in the third calendar quarter. |
| m. | Equipment purchases of $144,000are budgeted for the last day of June. |
| Required: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepare the following budgets and other financial information asrequired. All budgets and other financial information should beprepared for the second calendar quarter, except as otherwise notedbelow. Round calculations up to the nearest whole dollar, exceptfor the amount of cash sales, which should be rounded down to thenearest whole dollar:
AS YOU CAN SEE I HAVE ANSWERED HALF OF THE QUESTION BUT AM STUCKFOR THE REST. PLEASE IF YOU ARE NOT SURE DO NOT ANSWER. BECAUSE IHAVE POSTED THIS QUESTION MORE THAN 10 TIMES AND STILL DID NOT GETTHE CORRECT ANSWER. THANK YOU | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The management of Zigby Manufacturing prepared the followingestimated balance sheet for March, 2015: |
| ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2015 | |||||
| Assets | |||||
| Cash | $ | 54,000 | |||
| Accountsreceivable | 354,375 | ||||
| Raw materialsinventory | 100,495 | ||||
| Finished goodsinventory | 333,000 | ||||
| Total current assets | 841,870 | ||||
| Equipment,gross | 628,000 | ||||
| Accumulateddepreciation | (164,000) | ||||
| Equipment, net | 464,000 | ||||
| Total assets | $ | 1,305,870 | |||
| Liabilities and Equity | |||||
| Accountspayable | 212,195 | ||||
| Short-term notes payable | 26,000 | ||||
| Total current liabilities | $ | 238,195 | |||
| Long-term notepayable | 514,000 | ||||
| Total liabilities | 752,195 | ||||
| Common stock | 349,000 | ||||
| Retainedearnings | 204,675 | ||||
| Total stockholdersâ equity | 553,675 | ||||
| Total liabilitiesand equity | $ | 1,305,870 | |||
To prepare a master budget for April, May, and June of 2015,management gathers the following information. |
| a. | Sales for March total 22,500 units. Forecasted sales in unitsare as follows: April, 22,500; May, 19,500; June, 21,700; July,22,500. Sales of 254,000 units are forecasted for the entire year.The productâs selling price is $22.50 per unit and its totalproduct cost is $18.50 per unit. |
| b. | Company policy calls for a given monthâs ending raw materialsinventory to equal 50% of the next monthâs materials requirements.The March 31 raw materials inventory is 5,025 units, which complieswith the policy. The expected June 30 ending raw materialsinventory is 5,400 units. Raw materials cost $20 per unit. Eachfinished unit requires 0.50 units of raw materials. |
| c. | Company policy calls for a given monthâs ending finished goodsinventory to equal 80% of the next monthâs expected unit sales. TheMarch 31 finished goods inventory is 18,000 units, which complieswith the policy. |
| d. | Each finished unit requires 0.50 hours of direct labor at a rateof $10 per hour. |
| e. | Overhead is allocated based on direct labor hours. Thepredetermined variable overhead rate is $4.10 per direct laborhour. Depreciation of $30,790 per month is treated as fixed factoryoverhead. |
| f. | Sales representativesâ commissions are 6% of sales and are paidin the month of the sales. The sales managerâs monthly salary is$4,400. |
| g. | Monthly general and administrative expenses include $26,000administrative salaries and 0.5% monthly interest on the long-termnote payable. |
| h. | The company expects 30% of sales to be for cash and theremaining 70% on credit. Receivables are collected in full in themonth following the sale (none is collected in the month of thesale). |
| i. | All raw materials purchases are on credit, and no payables arisefrom any other transactions. One monthâs raw materials purchasesare fully paid in the next month. |
| J. | The minimum ending cash balance for all months is $54,000. Ifnecessary, the company borrows enough cash using a short-term noteto reach the minimum. Short-term notes require an interest paymentof 1% at each month-end (before any repayment). If the ending cashbalance exceeds the minimum, the excess will be applied to repayingthe short-term notes payable balance. |
| K. | Dividends of $24,000 are to bedeclared and paid in May. |
| l. | No cash payments for income taxes are to be made during thesecond calendar quarter. Income tax will be assessed at 40% in thequarter and paid in the third calendar quarter. |
| m. | Equipment purchases of $144,000are budgeted for the last day of June. |
| Required: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepare the following budgets and other financial information asrequired. All budgets and other financial information should beprepared for the second calendar quarter, except as otherwise notedbelow. Round calculations up to the nearest whole dollar, exceptfor the amount of cash sales, which should be rounded down to thenearest whole dollar:
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all the numbers above is correct but the system still tells methere is something missing and my answer is not complete. Can youplease help me complete it?
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| Budgeted balance sheet. |
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Same is here. Everything so far is correct. Just need tocompelete the answer. Thank you
What other data you need. This is a very very long question andI am just stuck on this part. So let me know which part do youwant?
