Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

Practical Application Assignment-

Assignment - Budget Project Information

Maple Magic Corporation is preparing the master budget for the quarter ending March 31.  It sells a single product for $45 a unit.  Sales are 20% cash and 80% credit.  The credit sales are collected 65% the following month and the remaining 35% is collected in the next month.  No credit sales and no purchases of merchandise occurred in December of the prior year.  The December 31 inventory of finished goods is 420 units and projected sales are 750, 725, 880, and 620 units for the first four months of the year.  The desired ending inventory for each month is 20% of the next month's sales. The inventory of Finished Goods expected to be on hand on April 30 is 380 units.   Each Finished Unit requires 3 kilograms of materials at a cost of $2.50 per kilo and it takes 1 and a quarter hours to complete one unit.  The company requires 20% of the next month production materials needs to be available before the start of the month.    Labour is paid at the rate of $12.80 per hour and is paid when incurred.  Production overhead is incurred based on labour hours per unit of production and costs $1.20 per hour.  Twenty-five percent of the purchases are paid in the month of purchase and 75% are paid in the following month.

Operating expenses are paid in the month incurred and consist of sales commissions (14.5% of sales), freight cost (3.5% of sales), office salaries of $6,500 a month, office supplies $200 per month, rent of $2,200 per month, and amortization of $750 per month.  The cash balance must not be negative. The beginning cash balance is $23,000.  Loans are obtained at the beginning of the month in which a cash shortage occurs and are issued in multiples of $1,000.  Interest is 1% per month based on the beginning-of-month loan balance and must be paid at the end of each month when the loan is repaid.   Maple Magic sold some securities for $25,000 cash in February.  During January it became clear that a new vehicle was needed so one was bought for $18,900 cash.

Required: Prepare a master budget for the first quarter on the excel template provided, that includes:

1) Sales budget,

2) Cash receipts schedule

3) Production budget

4) Materials budget

5) Labour budger

6) Overhead budget

7) Schedule of cash disbursements for materials 

8) Selling and administrative expense budget

9) Cash budget for each month.

10) Also prepare a budgeted income statement for the quarter.

Attachment:- Assignment Template.rar

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91950769

Have any Question?


Related Questions in Basic Finance

You plan to buy the house of your dreams in 12 years you

You plan to buy the house of your dreams in 12 years. You have estimated that the price of the house will be $78,423 at that time. You are able to make equal deposits every month at the end of the month into a savings ac ...

Questions -q1 openseas inc is evaluating the purchase of a

Questions - Q1. OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship could cost $499 million, but would operate for 2020 years. OpenSeas expects annual cash flows from operating the ship to be $ 68.7 ...

Gerritt wants to buy a car that costs 26500 the interest

Gerritt wants to buy a car that costs $26,500. The interest rate on his loan is 5.31 percent compounded monthly and the loan is for 6 years. What are his monthly payments? $416.25 $430.60 $439.40 $428.70 $452.13

Your grandfather has agreed to deposit a certain amount of

Your grandfather has agreed to deposit a certain amount of money each year into an account paying 7.75 percent annually to help you go to graduate school. Starting next year, and for the following four years, he plans to ...

Consider three investors who need to partially liquidate

Consider three investors who need to partially liquidate investments to raise cash. In this case, all investments have been held for 3 or more years. Investor A waited for a $1,500 qualified dividend distribution from he ...

Tick the factors that financial manager should be included

Tick the factors that financial manager should be included when computing the incremental free cash flows of an investment decision. Sunk costs Opportunity costs Project externalities Financing costs

A credit unions rate-climber gic pays rates of 2 6 and 8

A credit union's Rate-Climber GIC pays rates of 2%, 6%, and 8% compounded semiannually in successive years of a three-year term. How much interest will be earned in the second year, if $18,000 is invested in this GIC?

The pretzel factory has net sales of 841300 and cost of

the pretzel factory has net sales of 841,300 and . cost of 698500. the depreciation expense is 28400 and the interest paid is 8400. The firms marginal tax rate is 35 percent what is the firms operating cash flow?

Question - campaign organizers for both the republican and

Question - Campaign organizers for both the Republican and Democrat parties are interested in identifying individual undecided voters who would consider voting for their party in an upcoming election. The file Blue Or Re ...

John walters is comparing the cost of credit to the cash

John Walters is comparing the cost of credit to the cash price of an item. If John makes a down payment of $80 and pays $35 a month for 24 months, how much more will that amount be than the cash price of $685? Cost of cr ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As