Hampton Freeze, Inc.

Balance Sheet
31-Dec-16

Assets
Current assets:
Cash $42,500
Account receivable 90,000
Raw materials inventory (21000 poun 4,200
Finished goods inventory (2000 cases 26,000
Total corrent assets $162,700
Plant and equipment:
Land 80,000
Buildings and equipment 700,000
Accumulated depreciation -292,000
Plant and equipment, net 488,000
Total assets $650,700

Liabilities and Stockholders' Equity

Current liabilities:
Accounts payable $25,800
Stockholders' equity:
Common stock $175,000
Retained earnings 449,900
Total stockholders' equity 624,900
Total liabilities and stockholders' equity $650,700
 Hampton Freeze, Inc.
Budgeting Assumptions
For the Year Ended December 31, 2017

All 4 Quarters Quarter

Sales Budget 1
Budgeted sales in cases 10,000
Selling price per case $20.00
Percentage of salkes collected in the quarter of sale 70%
Percentagea of sales collected in the quarter after sale 30%

Production Budget
Percentage of next quarter's sales in the ending finished goods inventory 20%

Direct materials Budget

Pounds of sugar per case 15
Cost per pound of sugar $0.20
Percentage of next quarter's production needs in ending inventory 10%
Percentage of purchases paid in the quarter purchased 50%
Percentage of purchases paid in the quarter after purchase 50%

Direct labor Budget

Direct labor-hours required per case 0.40
Direct labor cost per hour $15.00

Manufacturing Overhead Budget

Variable manufacturing overhead per direct labor-hour $4.00
Fixed manufacturing overhead per quarter $60,600
Depreciation per quarter $15,000

Selling and Administrative Expense Budget:

Variable selling and administrative per case $1.80
Fixed selling and administrative expense per quarter
Advertising $20,000
Executive salaries $55,000
Insurance $10,000
Property tax $4,000
Depreciation $10,000

Cash Budget
Minimum cash balance $30,000
Equipments purcahses $50,000
Dividends $8,000
Simple Interest rate per quarter 3%
 Quarter
2 3 4
30,000 40,000 20,000

$40,000 $20,000 $20,000

 Hampton Freezw Inc
Sales Budget
For the year

Quarter
1 2 3 4
Budget sales in cases 10,000 30,000 40,000 20,000
selling price per case $ 20.00 $ 20.00 $ 20.00 $ 20.00
Total Sales 200,000 600,000 800,000 400,000

Percentage of sales collected in the period of the sale 70% amt last qtr
Percentage of sales collected in the period after the sale 30%

Schedule of expected cash collections

Accounts receivable, beginning Balance $ 90,000
First quarter sales 140,000 $ 60,000
Second quarter sales 420,000 $ 180,000
Third quarter sales 560,000 $ 240,000
Fourth quarter sales 280,000
Total cash collections $ 230,000 $ 480,000 $ 740,000 $ 520,000
 Year 20 Selling price per unit
100,000
$ 20.00
2,000,000

$ 90,000
200,000
600,000
800,000 Accounts Receivable
280,000 120,000
$ 1,970,000
 Hampton Freeze, Inc
Production Budget
For the Year Ended
(In Cases)

Quarter
1 2 3 4
Budgeted Sales (Schedule 1) 10000 30000 40000 20000
Add Desired ending inventory of finished goods 6000 8000 4000 3000
Total Needs 16000 38000 44000 23000
Less beginning inventory of finished goods 2000 6000 8000 4000
Required production 14000 32000 36000 19000
 20% Desired Ending Inventory
2000 Starting inventory first quarter
Assume 3000 Desired Ending Inventory 4th qtr

Year
100000
3000
103000
2000
101000
 Hampton Freeze, Inc
Direct Materials Budget
For the Year Ended December 31
(In Cases)

Quarter
1 2 3
Required production in cases (Schedule 2) 14000 32000 36000
Raw Materials needed per case (pounds) 15 15 15
Production needs (pounds) 210000 480000 540000
Add Desired ending inventory of raw materials 48000 54000 28500
Total Needs 258000 534000 568500
Less beginning inventories of raw materiasl 21000 48000 54000
Raw materials to be purchased 237000 486000 514500
Cost of raw materials per pound $0.20 $0.20 $0.20
Cost of raw materials to be purchased $47,400 $97,200 $102,900

Percentage of purchases paid for in the period of the purchase 50%

Percentage of purchases paid for in the period after the purchase 50%

Schedule of expected cash distribution for materials

Accounts payable, beginning Balance $25,800

First quarter purchases $23,700 $23,700
Second quarter sales $48,600 $48,600
Third quarter sales $51,450
Fourth quarter sales
Total cash disbursements for materials 49500 72300 100050
 Assumption
10% Desired ending inventory RM
r 15 Pounds of Material per unit
4 Year 0.2 Cost per unit
19000 101000 $25,800 Beginning AP
15 15 21000 Beginning RM
285000 1515000 22500 Desired ending inventory for 4th quarter Assume
22500 22500
307500 1537500
28500 21000
279000 1516500
$0.20 $0.20
$55,800 $303,300

25800
47400
97200
$51,450 102900 Accounts Payable
$27,900 27900 $27,900
79350 301200
 Hampton Freeze, Inc
Direct Labor Budget
For the Year Ended December 31

Quarter
1 2 3
Required Production in cases (production) 14000 32000 36000
Direct labor-hours per case 0.4 0.4 0.4
Total direct labor-hours needed 5600 12800 14400
Direct Labor cost per hour $15.00 $15.00 $15.00
Total direct labor cost $84,000 $192,000 $216,000
4 Year 0.40 Hours per unit
19000 101000 $15.00 Labor rate
0.4 0.4
7600 40400
$15.00 $15.00
$114,000 $606,000
 Hampton Freeze, Inc
Manufacturing Overhead Budget
For the Year Ended December 31

Quarter
1 2 3
Budget direct labor-hours (Schedule 4) 5600 12800 14400
Variable Manufacturing overhead rate $4.00 $4.00 $4.00
Variable Manufacturing overhead 22400 51200 57600
Fixed Manufacturing overhead 60600 60600 60600
Total Manufacturing overhead 83000 111800 118200
Less Depreciation 15000 15000 15000
Cash disbursements for manufacturing overhead $68,000 $96,800 $103,200

Total Manufacturing overhead (a)

Budgeted direct labor hours (b)
Predetermined overhead rate for the year (a)/(b)
 Assumptions
$4.00 Variable OH rate
ter 60600 Fixed OH
4 Year 15000 Depreciation
7600 40400
$4.00 $4.00
30400 161600
60600 242400
91000 404000
15000 60000
$76,000 $344,000

$404,000
40400
$10.00 fixed is $6.00
 Hampton Freeze, Inc
Ending Finished Goods Inventory Budget

For the Year Ended December 31

Item Quantity (input) Cost (input) Total (output)

Production cost per case:
Direct Materials 15 pounds $0.20 per pound $3.00
Direct Labor 0.40 hours $15.00 per hour 6.00
Manufacturing overhead 0.40 hours $10.00 per hour 4.00
Unit product cost $13.00

Budgeted finished goods inventory:

Ending finished goods inventory in cases (Schedule 2) 3000
Unit product cost (see above) $13.00
Ending finished goods inventory in dollars $39,000
 Hampton Freeze, Inc
Selling and Administrative Expense Budget
For the Year Ended December 31

Quarter
1 2 3 4
Budgeted sales in cases (Schedule 1)
Variable selling and administrative expense per case
Variable selling and administrative expense
Fixed selling and administrative expenses:
Advertising
Executive saleries
Insurance
Property taxes
Depreciation
Total fixed selling and administrative expenses
Total selling and administrative expenses
Less depreciation
Cash disbursements for selling and administrative expenses
Year $1.80 Var exp per case
 Hampton Freeze, Inc
Cash Budget
For the Year Ended December 31, 2008

Quarter
Schedule 1 2 3
Cash Balance, Beginning 42500
Add receipts:
Collections from customers 1
Total cash available
Less disbursements
Direct materials 3
Direct Labor 4
Manufacturing overhead 5
Selling and administrative 7
Equipment purchases 50000
Dividends 8000
Total disbursements
Excess (deficiency) of cash available over disbursements
Financing:
Borrowings (at the beginnings of quarters)
Repayments (at end of the year)
Interest
Total financing
Cash balance, ending
er
4 Year
Interest rate
Minimum Balance
 Hampton Freeze, Inc
Budget Income Statement
For the Year Ended December 31

Schedules
Sales 1
Cost of Goods sold 1,6
Gross Margin
Selling and administrative expensive expense 7
Net operating Income
Interest expense 8
Net Income

Sales
Variable expenses
Manufacturing
Selling and administrative
Total Variable Expenses
Contribution Margin
Fixed expenses
Manufacturing
Selling and administrative
Interest Expense
 Hampton Freeze, Inc
Budgeted Balance Sheet
December 31, 2017

Assets
Current Assets:
Cash (a)
Accounts receivables (b)
Raw materials inventory ( c)
Finished goods inventory (d)
Total current assets $0
Plant and equipment:
Land (e)
Buildings and equipment (f)
Accumulated depreciation (g)
Plant and equipment, net 0
Total Assets $0

Liabilities and Stockholders' Equity

Current liabilities:
Accounts payable (raw materials)
Stockholders' equity:
Common stock, no par (i)
Retained earnings (j)
Total stockholders' equity
Total liabilities and stockholders' equity $0

(j)
December 31, Balance
Add net income from Schedule 9

Deduct dividends paid, from Schedule 8

December 31, ending balance
 Assumptions
42500 Cash
90000 AR
4200 Raw Materials
26000 Finished Goods
80000 Land
700000 Buildings
-292000 Accum. Depr.
25800 AP
175000 Common Stock
449900 Retained Earnings
s