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Sales %

$ 200,000 70%
$ 200,000 25%
$ 500,000 70%
$ 500,000 25%
$ 300,000 70%

20%
10%

$ 0.40
$ 56,000 50%
$ 56,000 50%
$ 88,600 50%
$ 88,600 50%
$ 56,800 50%
30,000

16%
Sales Budget April
Units 20,000
Price $ 10.00
Sales $ 200,000

Cash Collection Budget


April
Sales $ 200,000
A/R March $ 30,000
April $ 140,000
April
May
May
June
Total Cash collected $ 170,000

Production Budget
April
Budgeted Sales 20,000
Add: Desired Ending Inventory 10,000
Total units needed 30,000
Less: Beginning Inventory (4,000)
Required Units 26,000
The Direct Materials Budget April
Production 26,000
Materials per unit 5
Production needs 130,000
Add: Desired ending Inventory 23,000
Total needed 153,000
Less: Beginning inventory (13,000)
Materials to be purchased 140,000
Cost of Materials $ 56,000
Cash Disbursement for Materials April
A/P March 31 12,000
April 28,000
April
May
May
June
Total cash disbursement for materials $ 40,000
Direct Labor Budget April
Units of production 26,000
Direct labor per unit 0.05
Labor hours required 1,300
Guaranteed labor hours 1,500
Labor hours paid 1,500
Hourly wage paid $ 10.00
Direct labor cost $ 15,000
Manufacturing Overhead Budget April
Budgeted DLH 1,300
Variable MOH rate $ 20.00
Variable MOH cost 26,000
Fixed MOH cost 50,000
Less: noncash costs (20,000)
Cash disbursement for MOH $ 56,000
Selling & Admin Budget April
Budgeted Sales
Variable S&A rate
Variable expenses
Fixed S&A expenses
Total S&A expenses
Less: Noncash expenses
Cash S&A expenses
The Cash Budget April
Beginning cash balance
Add: cash collection
Total cash available
Less: Cash disbursements
Materials
Direct Labor
Manufacturing overhead
Selling & Admin
Purchase of equipment
Dividends
Total disbursements
Excess (deficiency)
Financing:
Borrowing
Repayments
Interest
Total financing
Ending cash balance

Royal
Budgeted In
For the three mo

Sales
Cost of goods sold
Gross margin
Selling and Admin Expen
Operating income
Interest expense
Net Income
Royal
Budgeted
As o
Current Assets
Cash
Accounts Receivable
Raw materials inventory
Finished goods inventory
Total current assets
Property and equipment
Land
Equipment
Total property and equip
Total Assets

Accounts payable
Common shares
Retained earnings
Total liabilities and Equit
May June July August
50,000 30,000 25,000 15,000
$ 10.00 $ 10.00
$ 500,000 $ 300,000

May June
$ 500,000 $ 300,000

$ 50,000
$ 350,000
$ 125,000
$ 210,000
$ 400,000 $ 335,000

May June July August


50,000 30,000 25,000 15,000
6,000 5,000 3,000
56,000 35,000 28,000
(10,000) (6,000) (5,000)
46,000 29,000 23,000
May June July
46,000 29,000 23,000
5 5 5
230,000 145,000 115,000
14,500 11,500
244,500 156,500
(23,000) (14,500)
221,500 142,000
$ 88,600 $ 56,800
May June July

28,000
44,300
44,300
28,400
$ 72,300 $ 72,700 $ 185,000
May June
46,000 29,000
0.05 0.05
2,300 1,450
1,500 1,500
2,300 1,500
$ 10.00 $ 10.00
$ 23,000 $ 15,000
May June
2,300 1,450
$ 20.00 $ 20.00
46,000 29,000
50,000 50,000
(20,000) (20,000)
$ 76,000 $ 59,000
May June
May June
Royal Company
Budgeted Income Statement
For the three months ended June 30

goods sold

and Admin Expenses


ng income
t expense
Royal Company
Budgeted Balance Sheet
As of June 30
t Assets

ts Receivable
aterials inventory
d goods inventory
urrent assets
y and equipment

operty and equipment

ts payable
on shares
d earnings
abilities and Equity