Please include calculationsa. What are the total expected cash collections for the year under this revised budget?b. What is the total required production for the year under this revised budget?c. What is the total cost of raw materials to be purchased for the year under this revised budget?d. What are the total expected cash disbursements for raw materials for the year under this revised budget? The image shows an Excel spreadsheet titled "Chapter_8_Applying_Excel_Student_Form". It appears to be a template used for constructing various budgets and financial statements, specifically focused on production and raw materials.### Sections and Details:1. **Sales and Cash Collections:** - Rows 35-37 list: - Third-quarter sales - Fourth-quarter sales - Total cash collections - Each entry is currently marked with a question mark ("?"), indicating that the data needs to be filled in.2. **Construct the Production Budget:** - Found in rows 39-45, with details as follows: - **Budgeted Unit Sales:** Identified for different quarters in Year 2. - **Add Desired Finished Goods Inventory:** Additional inventory aims. - **Total Needs:** Sum of budgeted sales and desired inventory. - **Less Beginning Inventory:** Deducting initial inventory. - **Required Production:** Calculated needs for production.3. **Construct the Raw Materials Purchases Budget:** - Located in rows 47-57, detailed as: - **Required Production (units):** - **Raw Materials Required to Produce One Unit:** Amount of raw materials per unit. - **Production Needs (pounds):** Total raw materials needed. - **Add Desired Ending Inventory of Raw Materials (pounds):** Desired closing inventory. - **Total Needs (pounds):** Comprehensive needs calculation. - **Less Beginning Inventory of Raw Materials (pounds):** Initial inventory deduction. - **Raw Materials to be Purchased:** Final needed raw materials. - **Cost of Raw Materials per Pound:** Pricing detail. - **Cost of Raw Materials to be Purchased:** Total cost calculation.4. **Construct the Schedule of Expected Cash Payments:** - Found in rows 59-67, with outlines for: - **Accounts Payable, Beginning Balance:** Initial balances. - **First-quarter to Fourth-quarter Purchases:** Each quarter's purchase. - **Total Cash Disbursements:** Summing up the payments.### Observations:- All the sections and cells use placeholders with question marks ("?") for data input, indicating this is a planning or educational template.- The spreadsheet provides a structured format, helping students learn how to compile financial forecasts related to production and materials.- Columns are arranged by quarters in Year 2, with some mentions **Chapter 8: Applying Excel**### Data| Item | Details ||------|---------|| **Budgeted Unit Sales** | Year 2 Quarter 1: 40,000; Quarter 2: 60,000; Quarter 3: 100,000; Quarter 4: 50,000; Year 3 Quarter 1: 70,000; Quarter 2: 80,000 || **Selling Price per Unit** | $8 per unit || **Accounts Receivable, Beginning Balance** | $65,000 || **Sales Collected in the Quarter after Sales are Made** | 75% || **Sales Collected in the Following Quarter after Sales are Made** | 25% || **Desired Ending Finished Goods Inventory** | 30% of the budgeted unit sales of the next quarter || **Finished Goods Inventory, Beginning** | 12,000 units || **Raw Materials Required to Produce One Unit** | 5 pounds || **Desired Ending Inventory of Raw Materials** | 10% of the next quarter's production needs || **Raw Materials Inventory, Beginning** | 23,000 pounds || **Raw Material Cost** | $0.80 per pound || **Raw Material Purchases Are Paid** | 60% in the quarter the purchases are made; 40% in the quarter following purchase || **Accounts Payable for Raw Materials, Beginning Balance** | $81,500 |### Review Problem: Budget Schedules#### Construct the Sales Budget| Year 2 Quarter | 1 | 2 | 3 | 4 | Year 3 Quarter | 1 | 2 ||----------------|---|---|---|---|----------------|---|---|| **Budgeted Unit Sales** | 40,000 | 60,000 | 100,000 | 50,000 | 70,000 | 80,000 || **Selling Price per Unit** | $7 | $7 | $7 | $7 | $7 | $7 || **Total Sales** | $280,000 | $420,000 | $700,000 | $350,000 | $490,000 | $560,000 |#### Construct the Schedule of Expected Cash Collections| | Year 2 Quarter | 1 | 2 | 3 | 4 | Year ||---|---------------|

ata Year 2 Quarter Year 3 Quarter 1 3 4 1 udgeted unit sales 40,000 60,000 100,000 50,000 70,000 80,000 $8 per unit $65,000 Selling price per unit Accounts receivable, beginning balance Sales collected in the quarter sales are made Sales collected in the quarter after sales are made Desired ending finished goods inventory is Finished goods inventory, beginning Raw materials required to produce one unit Desired ending inventory of raw materials is Raw materials inventory, beginning Raw material costs Raw materials purchases are paid 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds 10% of the next quarter's production needs 23,000 pounds $0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase $81,500 and Accounts payable for raw materials, beginning balance

ata Year 2 Quarter Year 3 Quarter 1 3 4 1 udgeted unit sales 40,000 60,000 100,000 50,000 70,000 80,000 $8 per unit $65,000 Selling price per unit Accounts receivable, beginning balance Sales collected in the quarter sales are made Sales collected in the quarter after sales are made Desired ending finished goods inventory is Finished goods inventory, beginning Raw materials required to produce one unit Desired ending inventory of raw materials is Raw materials inventory, beginning Raw material costs Raw materials purchases are paid 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds 10% of the next quarter's production needs 23,000 pounds $0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase $81,500 and Accounts payable for raw materials, beginning balance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

LB Enterprises (LB) is preparing its budget for the first quarter of 2019. LB's balance sheet as of December 31, 2018 is as follows: Assets Liabilities Cash $5,000 Accounts Payable $9500 Accounts Recievable 28,000 Inventories Direct Materials 8,100 Finished Goods (500 Units) 16,870 Stockholders Equity Equipment - gross 45,000 Accumulated depreciation 15.000 Common Stock $15,000 Net Equipment 30,000 Retained Earnings 63,470 Total Assets $87,970 Total Liabilities and $87,960 Equity LB sells one product for $45/unit. The Company forecasts that it will sell 2,000; 1,500; 1,600; and 1,700 units in January, February, March and April, respectively. • Sales to customers are all on credit. 40% of the cash for these sales is collected in the month of the sale and the remaining 60% is collected in the following month. LB wants finished goods inventory equal to 25% of the next month's sales on hand at the end of each month. LB wants direct materials equal to 75% of the current month's production…
What revenue sources allow this budget to be balanced in each year? What revenue source will have the greatest impact on the budget? What assumptions have been made with respect to revenue sources? What two expenditures will have the greatest impact upon the budget?
Haha
An accounting statement that presents predicted amounts of the company's assets, liabilities, and stockholders' equity as of the end of the budget period is called a(n): Multiple Choice Budgeted income statement. Pro forma cash flow statement. Master balance sheet. Pro forma balance sheet. Operating balance sheet.
Which of the following would appear on both the budgeted income statement and on the schedule of expected cash disbursements for operating expenses? (A) Depreciation expense (B) Rent expense (C) Sales commission expense (D) Both B and C
39. When doing the budget, what is projected first? a) Census b) Expenses c) Reimbursement d) Labor hours