Need help with my Master Budget project. All the information


Question Description:

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Need help with my Master Budget project. All the information needed to complete it is inside the Excel file. 4 pages Master Budget.xlsx Master Budget Project Congratulations! You have just been hired as controller for a growing company that manufactures green products. It is October 1 and time for creation of the budget for the next year. The budget will be created in quarters using each month as a period of sales/production. Your first task is to create the budget for the first quarter of 2016. This involves completing budgets for January, February, March and the first quarter in total for 2016. You seek out last year’s data, recent costing information and follow up on important assumptions. The CFO wants to see the first quarter budget before you complete the rest of the year, as adjustments may be needed. You will need to create the following sub-budgets as part of the overall master budget: st Sales Budget for the 1st quarter st Production Budget for the 1st quarter st Materials Purchases Budget for the 1st quarter st Direct Labor Budget for the 1st quarter st Overhead Budget for the 1st quarter st Cash Receipts of Sales Revenue for the 1st quarter st Cash Payments for Material Purchases for the 1st quarter st Overall Cash Budget for the 1st quarter Income Statement for the quarter ended March 31, 2016 Statement of Cash Flows for the quarter ended March 31, 2016 Several assumptions are needed to work into your models for computation. They can be found on the Assumptions tab. Unit Sales Sales Price Desired Ending Inventory for Finished Goods Desired Ending Inventory for Material Units Cost of one lb.of materials (1 lb =1 material unit) Units of Direct Materials to make one unit Minutes of Direct Labor to make one unit Direct Labor Costs per Hour Overhead Costs percentage of Direct Labor Minimum cash balance (Assume you start with this) Cash collections in month of sale Cash collections in first month after sale Cash collections in second month after sale Cash Payments in month of purchase Cash Payments in the first month after purch Selling Costs per month (for cash budget) Administrative Costs per month (for cash budget) Annual Interest Rate for Letter of Credit Annual Interest Rate Earned on Excess Cash Sales Revenue for November Sales Revenue for December Material Purchases for November Material Purchases for December Depreciation Expense for the quarter (Operating Exp) Income Tax Rate January February March April May 30,000 28,000 27,000 28,500 29,000 $10 20% of next month’s sales in units 10% of next month’s materials needed for production $0.25 4 15 $16 150% $10,000 70% 25% 5% 70% 30% $12,000 $14,000 12% 3% $300,000 $300,000 $24,000 $24,000 $5,000 20% Read more

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