Question

help me to do the budgeted income statement (in jan.feb,march) not broken down into 3, schedule of collection in sales( month 1-3),schedule of payment of manufactory cost (month 1-3) and cash budget (month 1-3)

Please show work

1) Sales Budget
2) Production Budget
3) Direct Materials Purchases Budget
4) Direct Labour Cost Budget
5) Factory Overhead Cost Budget
6) Selling and Administrative Expenses Budget
7) Budgeted Income Statement
8) Schedule of Collections from Sales
9) Schedule of Payments for Manufacturing Costs
10) Cash Budget
All budgets should be for the individual three (3) months of the first quarter of 2017.
Include a quarterly total column on the right side. (except for #7 and #10)
Each budget/requirement should be in a separate tab within one spreadsheet.
All pages should be in portrait format using the same font type and size.
Please staple the printed copy in the upper left corner.

Total Assets					$1,315,625.78
LIABILITIES AND STOCKHOLDERS EQUITY
Accounts Payable					$5,755.15
Interest Payable					-
Income Tax Payable					-
Short Term Borrowings					-
Total Current Liabilities					5,755.15
Long-Term Notes Payable					436,000.00
Total Liabilities					441,755.15
Common Stock ($5.00 Par)				$475,000.00
Paid in Capital				100,000.00
Retained Earnings				298,870.63
Total Stockholders Equity					873,870.63
Total Liabilities and Stockholders Equity					$1,315,625.78

1. Sales
	2016 Actual Sales		2017 Estimated Sales
	Nov	Dec	Jan	Feb	Mar	Apr	May
Units	7,835	7,970	7,450	7,090	8,320	9,070	10,120
The selling price per unit has remained constant for the past year and is expected to
remain unchanged throughout the first quarter of 2017 at an amount of $68.99
2. Cash Collection Policy
Total sales consist of the following:
Cash sales:		5%
Credit sales:		95%
Credit collections are as follows:
In the month following the month of sale:					75%
In the second month following the month of sale:					25%
The Company does not have any bad debts.
3. Production Policy
The Company's policy is to produce during each month, enough units to meet the current
month's sales as well as a desired inventory at the end of the month which should be
equal to 23% of next month's estimated sales. On December 31, 2016, the finished
goods inventory consisted of 1,714 units at a cost of $50.40.
4. Direct Materials Purchasing Policy
Each month the Company purchases enough direct materials to meet that month's
production requirements and an amount equal to 25% of the next month's estimated
production requirements. Each unit of finished product requires 2.83 pounds of direct
materials at a cost of $1.38 per pound. On December 31, 2016, the direct materials
inventory consisted of 5,213 lbs. at a cost of $1.38.
Payments are made as follows:
In the month of purchase:				80%
In the following month the balance:				20%
The accounts payable balance of $5,755.15 as of December 31, 2016, represents 20% of
purchases made in December 2016 to be paid in January 2017.
5. Direct Labor Costs
Direct labor hours required per unit of finished product:						1.75
Average rate per direct labor hour:				$12.25
6. Factory Overhead
The Company applies variable factory overhead cost at the rate of 120% of direct
labor cost and fixed factory overhead on the basis of the number of direct labor hours.
The company has the following fixed overhead expenses per month:
	Factory supervisor's salary				$54,000.00
	Factory rent				6,000.00
	Factory insurance				6,500.00
	Depreciation of factory equipment				600
All factory overhead costs, except depreciation, are paid for in cash during the
month in which they are incurred.
7. Selling and Administrative Expenses
Variable selling expenses are:
	Freight out		$0.80	per unit
	Sales commissions		1%	of sales
Fixed selling and administrative expenses per month are:
	Salaries				$8,700.00
	Rent				1,800.00
	Advertising				150
	Insurance				250
	Depreciation (excluding depreciation of
	computer to be purchased at the end
	of January 2017				10,050.00
8. Income Taxes
Combined tax rate is 30% of Income before taxes computed at the end of the
quarter ending March 31, 2017 , payable in the second quarter.
9. Capital Expenditures
The Company expects to buy a new computer on January 31, 2017, for use in the sales and
administrative offices at a cost of $180,000.00, which will be paid in cash. Monthly
depreciation expense will be an additional $3,000.00 .
10. Financing Policy
On March 31, 2017, the Company is scheduled to pay $300,000.00 , of the long-term notes
payable plus interest expense for the first quarter at a rate of 12%
With respect to short-term borrowing, the Company's policy is to borrow at the beginning
of a month with an anticipated cash deficiency. A minimum cash balance of $25,000.00 is
required of the end of each month. The Company repays the principal of such short-term
borrowing at the end of the first following month to the extent of anticipated excess cash.
Interest must be paid the following month at a rate of 12%. Borrowing and principal
repayments are made in multiples of $1,000.00 .
11. Investing Policy
Investments earn interest of the rate of 6% per annum which is credited to our Checking
account by the bank at the beginning of the following month. You may assume that the balance
of Marketable Securities at December 31, 2016, was outstanding throughout the entire month.
12. General Information
Use proper rounding and show two (2) decimal places of accuracy on dollar amounts.
Round up and show whole amounts on all other figures.

		Vettel Manufacturing
		Sales Budget
		For the Quarter Ending March 31, 2017
	January	February	March	Q1 Total
Budgeted Sales (Units)	7450	7090	8320	22860
Selling Price Per Unit	$68.99	$68.99	$68.99	$68.99
Total budgeted sales	$513,975.50	$489,139.10	$573,996.80	$1,577,111.40

		Vettel Manufacturing
		Production Budget
		For the Quarter Ending March 31, 2017
	January	February	March	Q1 Total
Forecasted Units Sold	7,450	7,090	8,320	22,860
Plus Desired Ending Inventory	1,631	1,914	2,087	2,087
Total	9,081	9,004	10,407	24,947
Less Estimated Beginning Units	1,714	1,631	1,914	1,714
Total Units to Produced	7,367	7,373	8,493	23,233

Vettel Manufacturing, Inc.
Direct Materials Purchases Budget
For the Quarter Ending March 31, 2017
			January	February	March		April	Quarter 1
			----------------------------------------------------------------------------------------------------					----------------------
Required Production Units			7,367	7,373	8,493		9311	23,233
Pounds of DM per Unit			2.83	2.83	2.83		2.83	2.83
			----------------------------------------------------------------------------------------------------					----------------------
Total DM Required for Production			20,849	20,866	24,035		26,350	65,749
DM Purchases (75% of current mon)			15637	15650	18026		19763
(25% of next mon			5217	6009	6588
Total DM Purchases			20,853	21,658	24,614			67,125
Unit Price			1.38	1.38	1.38			-
			----------------------------------------------------------------------------------------------------					----------------------
DM Purchase Cost			28777.49	29888.39	33967.02			92632.89
			==========================================					============

Vettel Manufacturing, Inc.
Direct Labour Cost Budget
For the Quarter Ending March 31, 2017
			January	February	March		Quarter 1
			----------------------------------------------------------------------------------------------------				----------------------
Budgeted Units of Production			7367	7373	8493		23233
Direct Labor Hours Required Per Unit			1.75	1.75	1.75		1.75
			----------------------------------------------------------------------------------------------------				----------------------
Total Direct Hours Labor Required			12892	12903	14863		40658
Hourly Rate			$ 12.25	$ 12.25	$ 12.25		$ 12.25
			----------------------------------------------------------------------------------------------------				----------------------
Total Direct Labor Cost			$ 157,927.00	$ 158,061.75	182071.75		$ 498,060.50
			==========================================				============

Selling and Admin Budget'!E5=										7. Selling and Administrative Expenses
Selling and Administrative Expenses Budget										Variable selling expenses are:
For the Quarter Ending March 31, 2017											Freight out		$0.80	per unit
				January	February	March		Quarter 1			Sales commissions		1%	of sales
Sales Units				7,450	7,090	8,320		22,860
Sales				$ 513,975.50	$ 489,139.10	$ 573,996.80		$ 1,577,111.40
				----------------------------------------------------------------------------------------------------				----------------------		Fixed selling and administrative expenses per month are:
Variable Selling and Administrative Expenses:											Salaries				$8,700.00
Freight Out ($0.80 per unit)				$ 5,960.00	$ 5,672.00	$ 6,656.00		$ 18,288.00			Rent				1,800.00
Sales Commissions (1% of sales)				$ 5,139.76	$ 4,891.39	$ 5,739.97		$ 15,771.12			Advertising				150
				----------------------------------------------------------------------------------------------------				----------------------
Total Variable Selling and Administrative Expenses				$ 11,099.76	$ 10,563.39	$ 12,395.97		$ 34,059.12			Insurance				250
				----------------------------------------------------------------------------------------------------				----------------------			Depreciation (excluding depreciation of
Fixed Selling and Administrative Expenses:											computer to be purchased at the end
Salaries				$ 8,700.00	$ 8,700.00	$ 8,700.00		$ 26,102.00			of January 2017				10,050.00
Rent				$ 1,800.00	$ 1,800.00	$ 1,800.00		$ 5,402.00
Advertising				$ 150.00	$ 150.00	$ 150.00		$ 452.00
Insurance				$ 250.00	$ 250.00	$ 250.00		$ 752.00
Depreciation				$ 10,050.00	$ 10,050.00	$ 10,050.00		$ 30,152.00
				----------------------------------------------------------------------------------------------------				----------------------
Total Fixed Selling and Administrative Expenses				$ 20,950.00	$ 20,950.00	$ 20,950.00		$ 62,850.00
				----------------------------------------------------------------------------------------------------				============
Total Selling and Administrative Expenses				$ 32,049.76	$ 31,513.39	$ 33,345.97		$ 96,909.12

Vettel Manufacturing, Inc.
Factory Overhead Cost Budget
For the Quarter Ending March 31, 2017
			January	February	March	Quarter 1
Supervisor Salaries			54,000	54,000	54,000	162,000
Factory Rent			6,000	6,000	6,000	18,000
Factory Insurance			6,500	6,500	6,500	19,500
Depreciation of Factory Equipment			600	600	600	1,800
Total Factory Overhead Cost			67,100	67,100	67,100	201,300
Variable factory overhead			189512.40	189674.10	218486.10	597672.6
Total Factory Overhead Cost			256,612.40	256,774.10	285,586.10	798,972.60