Question

just 7-10 PLEASE.

The management of Nabar Manufacturing prepared the following estimated balance sheet for June 2017: NABAR MANUFACTURING Estimated Balance Sheet June 30, 2017 $ Assets Cash Accounts receivable ................. Raw materials inventory .............. Finished goods inventory ............. Total current assets ................ Equipment .................. . Accumulated depreciation ......... Equipment, net 40,000 249,900 35,000 241,080 565,980 720,000 (240,000) 480,000 Liabilities and Equity Accounts payable ... Income taxes payable.... Short-term notes payable .......... Total current liabilities ... Long-term note payable ........... Total liabilities Common stock .... Retained earnings ............ Total stockholders' equity .......... Total liabilities and equity $ 51,400 10,000 24,000 85,400 300,000 385,400 600,000 60,580 660,580 $1,045.980 Total assets.... $1,045,980 To prepare a master budget for July, August, and September of 2017, management gathers the following information: a. Sales were 20,000 units in June. Forecasted sales in units are as follows: July, 21.000; August, 19.000; September, 20,000; and October, 24,000. The product's selling price is $17 per unit and its total prod- uct cost is $14.35 per unit. b. Company policy calls for a given month's ending finished goods inventory to equal 70% of the next month's expected unit sales. The June 30 finished goods inventory is 16,800 units, which does not comply with the policy.

Answer 1

I have given the full answer so that full flow can be shown

1. Sales Budget Sales Units Selling price Budgeted Sales (value) July 21,000 $17 $357,000 August September Quarter 19,000 20,000 60,000 $17 $17 $323,000 $340,000 $1,020,000 $171 July August September Quarter $107,100 $249,900 $96,900 $226,100 $102,000 $238,000 $306,000 $714,000 Expected Cash Collection Sales Cash Sales -30% Credit Sales Collections Credit Sales April Sales May Sales Opening AR Balance Cash Sales -30% Total Cash Received $249,900 $249,900 $107,100 $357,000 $249,900 $226,100 $226,100 $249,900 $102,000 $306,000 $328,100 $1,031,900 $96,900 $346,800 2. Production Budget Budgeted Sales Add: Closing inventory - (70% of next month sales) Total Needs Less: Opening Inventory Production Units Closing stock of month will be opening stock of next month July 21,000 13,300 34,300 16,800 17,500 August 19,000 14,000 33,000 13,300 19,700 September Quarter 20,000 60,000 16,800 16,800 36,800 76,800 14,000 16,800 22,800 60,000 3. Raw Material purchase budget July 17,500 0.5 Production Unit cost Consumed for production Add: Closing inventory - (20% of next month prod requirement) 8,750 1,970 10,720 4,375 6,345 August 19,700 0.5 9,850 2,280 12,130 1,970 10,160 $8 $81,280 September 22,800 0.5 11,400 1,980 13,380 2,280 11,100 $8 $88,800 Quarter 60,000 0.5 30,000 1,980 31,980 4,375 27,605 $8 $220,840 Less: Opening Inventory Purchase Budget (Units) Unit cost Purchase budget in value | $50,760 Expected Cash disbursements for Materials Purchases July August September Quarter $50,760 Cash payments for purchase July Purchase August Purchase June Purchase Total purchase payment $81,280 $50,760 $81,280 $51,400 $183,440 $51,400 $51,400 $50,760 $81,280 4. Direct Labor Production Direct Labor hour per unit Direct Labor needed Labour hour rate Direct labor cost budget July 17,500 0.50 8,750 $16.00 $140,000 August 19,700 0.50 9,850 $16.00 $157,600 September 22,800 22,800 0.50 11,400 $16.00 $182,400 Quarter 60,000 0.50 30,000 $16.00 $480,000 Factory Overhead Budget Production Units Direct Labor hour per unit Direct Labor needed Variable overheads- $2.70 per hour Fixed Overhead Depreciation Total Factory Overhead Budget July 17,500 0.50 8,750 $23,625 $20,000 $43,625 August 19,700 0.50 9,850 $26,595 $20,000 $46,595 September 22,800 0.50 11,400 $30,780 $20,000 $50,780 Quarter 60,000 0.50 30,000 $81,000 $60,000 $141,000 6. Selling Expense Budget July August September Quarter Sales Commission - 10% of Sales Sales manager salary Total Selling Expense Budget $35,700 $3,500 $39,200 $32,300 $3,500 $35,800 $34,000 $3,500 $37,500 $102,000 $10,500 $112,500 7. General and administrative expense budget General and administration expenses Interest on Long-term notes payable Total General and administrative expense budget July $9,000 $2,700 $11,700 August $9,000 $2,700 $11,700 September Quarter $9,000 $27,000 $2,700 $8,100 $11,700 $35,100 | 8. Cash Budget July $40,000 August $96,835 September Quarter $141,180 $40,000 $357,000 $397,000 $346,800 $443,635 $328,100 $1,031,900 $469,280 $1,071,900 $51,400 $140,000 $23,625 $35,700 $3,500 $9,000 $50,760 $157,600 $26,595 $32,300 $3,500 $9,000 $20,000 $81,280 $182,400 $30,780 $34,000 $3,500 $9,000 $183,440 $480,000 $81,000 $102,000 $10,500 $27,000 $20,000 Beginning cash balance Add: Cash receipts Collection from customers Total cash available Less cash disbursements Payment of Raw Materials Direct labor Variable Overhead Sales Commission Sales Salaries General and administration expanse Dividends Loan Interest Equipment purchase Income Tax Interest on Long term note payable - 0.9% Total cash disbursements Preliminary Cash balance Financing Additional Loan Repayments of loan to Bank Total financing Ending cash balance Loan balance at end of the month $240 $100,000 $100,000 $10,000 $2,700 $276,165 $120,835 $2,700 $302,455 $141,180 $2,700 $8,100 $443,660 $1,022,280 $25,620 $49,620 $14,380 $24,000 -$24,000 $96,835 $ $14,380 -$24,000 -$9,620 $40,000 $0 $141,180 $0 $14,380 $40,000 $14,380

NABAR Manufacturing Budgeted Income Statement For the Quarter ended September 30 2017 Sales $1,020,000 $240,000 $480,000 $141,000 $159,000 Direct Material Direct Labor Manufacturing overheads Gross Margin Operating expenses Selling and administrative expense Interest on short term note Interest on long term note Income Before Tax Less Taxes at 35% Net Operating Income $139,500 $240 $8,100 $147,840 $11,160 $3,906 $7,254 NABAR Manufacturing Budgeted Balance Sheet 30-Sep-17 10. Assets Cash Accounts receivable Raw Material inventory Finished Goods Inventory Total Current Assets Equipment gross Purchase $40,000 $238,000 $15,840 $241,080 $534,920 $720,000 $100,000 $820,000 $300,000 Less : Depreciation during the year Equipment Net $520,000 $1,054,920 Total Assets Liabilities and Equity Accounts payable Short term note payable Income tax payable Total Current Liabilities $88,800 $14,380 $3,906 $107,086 Long term note payable Total Liabilities $300,000 $407,086 Common stock Retained earnings Total Stockholders Liability Total Liabilities and Stockholders' Equity $600,000 $47,834 $647,834 $1,054,920 NABAR Manufacturing Budgeted Statement of Retained Earnings For the Quarter ended September 30 2017 Retained Earnings - Beginning Balance Add: Net profit $60,580 $7,254 $67,834 -$20,000 $47,834 Less: Dividend Retained Earnings - Ending Balance Accounts receivable closing balance Opening Balance Add: Sales Less: Collection Closing Balance $249,900 $1,020,000 $1,031,900 $238,000 Accounts payable closing balance Opening Balance Add: Purchases Less : Payment Closing Balance $51,400 $220,840 $183,440 $88,800