Sailor, Inc.

Input Cell
Facts Linked Cell
Calculation

Variable costs per unit manufactured:

Direct materials
Wooden boat boat at each
Fabric sail sails at each
Direct labor hour at per hour
Variable manfacturing overhead per unit
Fixed manufacturing overhead per quarter

Sales price

Projected ending inventory units following quarter's sales

Operating expenses
Variable per unit sold
Fixed per quarter

Depreciation per quarter

Income tax rate

Sailor, Inc.
Prior Year End Projected Balance Sheet

20X0
Assets
Current assets:
Cash $ 50,000
Accounts receivable 107,000
Inventory:
Direct materials (5,000 units) 12,500
Finished goods (5,000 units) 60,000
Total current assets 229,500
Buildings and equipment 420,000
Less: Accumulated depreciation (20,000)
Total assets $ 629,500

Liabilities and Owners' Equity

Current liabilities:
Accounts payable $ 25,000
Notes payable 36,000
Income taxes payable 25,000
Total current liabilities 86,000

Owners' equity:
Capital stock 400,000
Retained earnings 143,500
Net income -
Total owners' equity 543,500
Total liabilities and owners' equity $ 629,500

Check -
Sailor, Inc.
Sales Budget

Q1 Q2 Q3 Q4
Projected unit sales
Sales price
Projected revenue
Sailor, Inc.
Production Budgets

Units of Production Q1 Q2 Q3 Q4 Next year

Projected unit sales
Add: Ending inventory 2,600
Units available for sale - - - - 2,600
Less: Beginning inventory 2,400
Budgeted production - (2,400) - - 2,600
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Direct Materials Purchases Budget
Boats
Boats needed for production
Add: Ending inventory
Boats available for production - - - -
Less: Beginning inventory -
Boats to purchase - - - -
Budgeted cost of boats $ - $ - $ - $ -
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Sails
Sails needed for production 14,800
Add: Ending inventory
Sails available for production 14,800 - - -
Less: Beginning inventory
Sails to purchase 14,800 - - -
Budgeted cost of sails
Total budgeted cost of materials
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Direct Materials Used Budget

Beginning inventory
Purchases 14,400
Less: Ending inventory boats
Less: Ending inventory sails
Direct materials used $ 14,400 $ - $ - $ -
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Direct Labor Budget

Budgeted production
Total labor hours needed
Budgeted direct labor cost
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Manufacturing Overhead
Budgeted production
Variable overhead cost
Fixed overhead cost
Total overhead cost $ - $ - $ - $ -
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Sailor, Inc.
Budgeted Cost of Goods Manufactured and Sold

Q1 Q2 Q3 Q4
Finished goods, beginning inventory
Add: Cost of goods manufactured
Direct materials used 19,700
Direct labor used
Variable overhead
Fixed overhead
Total cost of goods manufactured 19,700 - - -
Total costs of goods available for sale 19,700 - - -
Less: Ending finished goods inventory $ - $ - $ -
Cost goods sold $ 19,700 $ - $ - $ -
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Finished Goods Inventory
Cost of goods manufactured
Divide by: Units of production
Production cost per unit
Multiply by: Ending inventory units
Cost of ending FG inventory
Try Again Try Again Try Again Try Again
Hint: Complete this schedule up until this point, then work on Finished Goods Inventory below.
ntory below.
Sailor, Inc.
Operating Expense Budget

Q1 Q2 Q3 Q4
Variable opex
Fixed opex
Total opex $ - $ - $ - $ -
Sailor, Inc.
Notes Payable

NP - Bank
Principal
Interest rate

Principal
Payment Interest Balance Cash Payment
Beg
Q1 $ 450
Q2
Q3 Try Again
Q4
Sailor, Inc.
Budgeted Income Statement

Q1 Q2 Q3 Q4
Revenue
Cost of goods sold 99,198
Gross profit - (99,198) - -
Operating expenses
Operating income - (99,198) - -
Interest expense
Income before taxes - (99,198) - -
Tax expense (benefit)
Net income (loss) $ - $ (99,198) $ - $ -
Try Again Try Again Try Again Try Again
Sailor, Inc.
Cash Budget

Q1 Q2 Q3
Cash inflows
Sales
Beg bal A/R
Quarter 65% $ 162,500
Quarter following 35%
Total cash inflows $ 162,500 $ - $ -
Try Again Try Again Try Again
Cash outflows
Direct materials purchased
Payments for direct materials

Direct materials $ - $ - $ -
Direct labor
Mfg overhead
Debt service 9,338
Income taxes
Operating expenses
Less: Depreciation
Total cash outflows $ - $ 9,338 $ -
Net change in cash $ 162,500 $ (9,338) $ -
Beginning balance cash
Ending balance cash $ 162,500 $ (9,338) $ -
Try Again Try Again Try Again
 Q4 Next year

$ -
Try Again

$ -

$ -
$ -

$ -
Try Again
Sailor, Inc.
Budgeted balance sheet

Q1 Q2 Q3 Q4
Assets
Current assets:
Cash $ 257,734
Accounts receivable
Inventory:
Direct materials
Finished goods
Total current assets - - 257,734 -
Buildings and equipment
Less: Accumulated depreciation (28,000)
Total assets $ (28,000) $ - $ 257,734 $ -
Try Again Try Again Try Again Try Again
Liabilities and Owners' Equity
Current liabilities:
Accounts payable
Notes payable
Income taxes payable
Total current liabilities - - - -

Owners' equity:
Capital stock
Retained earnings 227,023
Net income
Total owners' equity - - 227,023 -
Total liabilities and owners' equity $ - $ - $ 227,023 $ -

Check (28,000) - 30,711 -

Sailor, Inc.
Flexible Budgets

Q1 Budget Q1 Actual Variance % Variance

Manufacturing costs:
Direct materials $ 21,000
Direct labor 16,250
Variable mfg OH 22,200 21,000
Fixed mfg OH 3,200
Total manufacturing costs $ 22,200 $ 61,450
Units 7,250

Flexible
Volume Q1 Flexible Budget
Q1 Budget Variance % Variance Budget Variance % Variance
Manufacturing costs:
Direct materials $ 21,750
Direct labor -
Variable mfg OH -
Fixed mfg OH -
Total manufacturing costs $ - $ 21,750
Units
Q1 Actual

$ -