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Macaraeg Manufacturing Company

Statement of Financial Position


December 31, 2018

Assets Liabilities and Equities


Current Assets Current Liabilities:
Cash 150,000.00 Accounts Payable 150,500.00
Accounts Receivable 220,000.00 Taxes Payable 156,000.00
Inventories 602,500.00 Current portion of Long-term debt 83,000.00
Other Current Assets 23,000.00
Total Current Assets 995,500.00 Total Current Liabilities 389,500.00
Long-term liabilities 576,000.00
Total Liabilities 965,500.00

Long-term assets Equity


Property, Plant and Equipment 2,475,000.00 Share Capital 350,000.00
Less: Accumulated Depreciation 850,000.00 Retained Earnings 1,305,000.00
Net 1,625,000.00 Total Equities 1,655,000.00

Total Assets 2,620,500.00 Total Liabilities and Equity 2,620,500.00

Estimated Sales: Units Price/unit


Units 9,240 800

Finished goods inventory: Units Price/unit


Beginning 900 500 Beginning inventory
Ending 1,000 500 Ending inventory
Work in Process inventory:
Beginning
Ending

Raw Materials Inventory:


Beginning
Ending
Materials Materials
R S R S
Materials required/unit of finished
product 3 5
Beginning Inventory 3,250 4,000 Beginning Inventory 32,500 120,000
Ending Inventory 1,400 4,600 Ending Inventory 14,000 138,000
Unit Cost 10 30
Direct Labor/unit 146 146

Estimated Overhead:
Variable:
Indiret Materials and supplies 5.846153846 per unit produced
Materials handling/unit 9.076923077
Other indirect labor/unit 5.076923077

Fixed:
Supervisor labor 175,000.00
Maintenance and repair 85,000.00
Plant administration 173,000.00
Utilities 87,000.00
Depreciation 280,000.00
Insurance 43,000.00
Property Taxes 117,000.00
Other 41,000.00
Marketing & Admin. Expenses
Variable marketing cost:
Sales commission 40.625
Other Marketing costs 16.25

Fixed marketing costs:


Sales Salaries 100,000.00
Advertising 193,000.00
Other 78,000.00

Admin. Costs (all fixed):


Administrative salaries 254,000.00
Data processing services 103,000.00
Legal and other prof. fees 180,000.00
Dep. - Building, Furniture and Eqpt. 94,000.00
Taxes - other than income 160,000.00
Other 26,000.00

1. All sales are on account.


Exp. collection from customers 6,950,000.00

2. Equipment Cost 300,000.00


Accumulated Depreciation 275,000.00
Net book value 25,000.00
Sold at 25,000.00
Gain/-Loss 0

Purchased Eqpt. 320,000.00

3.Accts. Payable will increase by: 110,000.00


For purchases only

4. Income tax rate 0.35


Tax Paid 252,000.00

5. Dividends paid: 140,000.00


Current portion of LT debt settled: 83,000.00
Interest per annum. 0.08

Sched 7
Taxes other than income 160,000.00 LT debt 659,000.00
Interest 52,000.00 Int. per annum. 0.08
Taxes other than Income 108,000.00 interest expense 52,720.00
Sched 8
Material purchases 1,680,700.00
Increase in Accounts Payable 110,000.00
Payments for Mat. Purchases 1,570,700.00

Manufacturing Overhead 1,187,800.00


Depreciation 280,000.00
Mftg. Overhead for Cash Budget 907,800.00

Total M&A costs 1,661,525.00


Depreciation 94,000.00
1,567,525.00
Interest Paid 52,720.00
Total M&A costs for Cash budget 1,620,245.00

PPE Beg. 2,475,000.00


PPE sold 300,000.00
2,175,000.00
PPE Acquired 320,000.00
PPE End. 2,495,000.00

Accmltd Dep. Beg. 850,000.00


Accmltd dep. Sold 275,000.00
575,000.00
Dep. MOH 280,000.00
Dep. M&A 94,000.00
Accmltd. Dep. End. 949,000.00

Accounts Payable Beginning 150,500.00


Purchases 1,680,700.00
1,831,200.00
Payment 1,570,700.00
Accounts Payable Ending 260,500.00

Taxes Payable Beginning 156,000.00


Property Taxes 117,000.00
Taxes other than income 108,000.00
Net income tax 523,290.25
Total 904,290.25
Payment of income tax 252,000.00
Payment of property tax 117,000.00
Payment of taxes other than inc. tax 108,000.00
Taxes Payable Ending 427,290.25

Retained Earnings Beginning 1,305,000.00


Net Income 971,824.75
2,276,824.75
Dividends 140,000.00
Retained Earnigs Ending 2,136,824.75
Note Inventories
1
Beginning Balance Ending Balance
Description Quantity Price/ Amount Description Quantity Price/ Amount
unit unit
Finished goods 900 500 450,000.00 Finished goods 1,000 500 500,000.00
Work in process 0 0 0 Work in process 0 0 0
Raw materials 0 Raw materials 0
R 3,250 10 32,500.00 R 1,400 10 14,000.00
S 4,000 30 120,000.00 S 4,600 30 138,000.00
Total 602,500.00 Total 652,000.00

Note Accounts Rec.


2
Beginning AR 220,000.00
Sales 7,392,000.00
7,612,000.00
Collections 6,950,000.00
Ending AR 662,000.00

Note PPE Beginning Accumulated Dep.


3 850,000.00
Beginning PPE 2,475,000.00 Accumulated Dep. Sold 275,000.00
PPE sold 300,000.00 575,000.00
2,175,000.00 Dep. Manufacturing OH 280,000.00
PPE Acquired 320,000.00 Dep. Marketing & Administrative 94,000.00
Ending PPE 2,495,000.00 Ending Accumulated Dep. 949,000.00
Sales Budget
For 2019

Units Price per unit Total Sales Revenue


Estimated Sales 9,240 800 7,392,000.00
Production Budget
For 2019

Units to be sold 9,240


Desired Ending Inventory 1,000
Total 10,240
Beginning Inventory 900
Units to be produced 9,340
Raw Materials Purchases
For 2019

Materials
R S
Units Required for production
R 28,020
S 46,700
Desired ending inventory 1,400 4,600
Total units required 29420 51,300
Beginning inventory 3250 4,000
Units to be purchased 26,170 47,300
Unit Price 10 30
Total Purchases 261,700 1,419,000
Direct Labor Budget
For 2019

Number of units to be produced 9,340


Direct labor cost per unit 146
Total budgeted direct labor costs 1,363,640
Budgeted Manufacturing Overhead
For 2019

Variable Overhead: units needed to produced 9,340


Indiret materials and supplies 54,603.08
Materials handling 84,778.46
Other indirect labor 47,418.46
Total 186,800.00
Fixed manufacturing overhead
Supervisor labor 175,000.00
Maintenance and repair 85,000.00
Plant administration 173,000.00
Utilities 87,000.00
Depreciation 280,000.00
Insurance 43,000.00
Property Taxes 117,000.00
Other 41,000.00
Total 1,001,000.00
Total manufacturing overhead 1,187,800.00
Budgeted Statement of Cost of Sales
For 2019

Beginning work in process inventory 0


Manufacturing costs
Direct Materials
Beginning Inventory 152,500.00
Purchases 1,680,700.00
Total 1,833,200.00
Ending Purchases 152,000.00
Total direct material cost 1,681,200.00
Direct labor 1,363,640.00
Manufacturing overhead 1,187,800.00
Total manufacturing cost 4,232,640.00
Ending work in process inventory 0
Cost of goods manufactured 4,232,640.00
Beginning finished goods inventory 450,000.00
Total goods available for sale 4,682,640.00
Ending finished goods inventory 500,000.00
Cost of sales 4,182,640.00
Budgeted Marketing and Administrative Costs
For 2019

Variable marketing cost


Sales commission 375,375.00
Other marketing costs 150,150.00
Total 525,525.00
Fixed marketing costs:
Sales salaries 100,000.00
Advertising 193,000.00
Other 78,000.00
Total 371,000.00
Total marketing costs 896,525.00
Admininistrative costs (all fixed)
Administrative salaries 254,000.00
Data processing services 103,000.00
Legal and other professional fees 180,000.00
Dep. - Building, Furniture and Equipment 94,000.00
Taxes - other than income 108,000.00
Other 26,000.00
Total 765,000.00
Total marketing and administrative costs 1,661,525.00
Macaraeg Manufacturing Company
Cash Budget
For the Budget Year Ending December 31, 2019

Cash balance, January 1, 2018 150,000.00


Estimated receipts
Collection from customers 6,950,000.00
Sale of Assets 25,000.00
Total 6,975,000.00
Total cash available 7,125,000.00
Estimated disbursements
Payment for material purchases 1,570,700.00
Direct labor 1,363,640.00
Manufacturing overhead 907,800.00
Marketing & Administrative expenses 1,620,245.00
Payments for income tax 252,000.00
Dividends 140,000.00
Reduction in long-term debt 83,000.00
Acquisition of new assets 320,000.00
Total disbursements 6,257,385.00
Cash balance, December 31, 2018 867,615.00
Macaraeg Manufacturing Company
Budgeted Income Statement
For the Budget Year Ending December 31, 2019

Sales 7,392,000.00
Cost of sales 4,182,640.00
Gross profit 3,209,360.00
Marketing and administrative costs 1,661,525.00
Net operating profit 1,547,835.00
Interest expense 52,720.00
Net income before taxes 1,495,115.00
provision for income taxes 523,290.25
Net income after taxes 971,824.75
Macaraeg Manufacturing Com
Budgeted Statement of Financial P
December 31, 2019

Assets
Current assets
Cash 867,615.00
Accounts Receivable 662,000.00
Inventories 652,000.00
Other current assets 23,000.00
Total current assets 2,204,615.00

Long-term assets
Property, Plant and Equipment 2,495,000.00
Accumulated Depreciation 949,000.00
Net 1,546,000.00

Total Assets 3,750,615.00


Macaraeg Manufacturing Company
dgeted Statement of Financial Position
December 31, 2019

Liabilities
Current Liabilities
Accounts Payable 260,500.00
Taxes Payable 427,290.25
Current portion of long term debt
Total current liabilities 687,790.25
Long-term liabilities 576,000.00
Total Liabilities 1,263,790.25

Equity

Share capital 350,000.00


Retained Earnings 2,136,824.75
Total equities 2,486,824.75

Total Liabilities and Equity 3,750,615.00

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