(2) Prepare a budgeted income statement for the quarter ending June 30, 2021, and a budgeted balance statement as of June 30, 2021. Olympia Company, Inc. Balance Sheet March 31,2021 Assets Cash $ 14,200.00 Accounts receivable 62,000 Raw materials inventory 8,064 Finished goods inventory 26,500 Total current assets 110,764 400,000 Land Property, plant, and equipment: Buildings and equipment Less: Accumulated depreciation Property, plant and equipment, net Total assets 1,713,460 (740,000) 973,460 1,484,224 Liabilities and stockholders' equity Current liabilities: Accounts payable Stockholders' equity: Common stock Retained earnings Total stockholders 19,000 300,000 1,165,224 1.465.224 Total current assets 110,764 400,000 Land Property, plant, and equipment: Buildings and equipment Less: Accumulated depreciation Property, plant and equipment, net Total assets 1,713,460 (740,000) 973,460 1,484,224 19,000 Liabilities and stockholders' equity Current liabilities: Accounts payable Stockholders' equity: Common stock Retained earnings Total stockholders Total liabilities and stockholder's equity 300,000 1,165,224 1,465,224 1,484,224 Company Name Budgeted Income Statement Date Source Sales Budget OM DL, Overhead, End FG Inv Budgets Sales Less cost of goods sold Gross margin Less selling and administrative expenses Operating income Less interest expense Net Income SGSA Budget Cash Budget Company Name Budgeted Balance Sheet Date Source Cash Budget Sales Cash Collections Materials Budget End FG In Budget Assets Current assets: Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Plant and equipment Land Buildings and equipment Accumulated depreciation Plant and equipment, net Total assets Beg Balance Sheet Beg BS Cash Budget Beg BS MOH S&A Budget Liabilities and Stockholders' Equity Current liabilities Accounts payable Note Payable (LOC) Total current liabilities Stockholders' equity Common stock Retained earnings Materials Budget Cash Budget 3 Balance check (PI Beg Balance Sheet Beg 85.13Cash Budget ADS Notes SOLIC Sales Budget OM DL overhead End FO in Budgets Sales Less cost of goods sold Gross margin Less selling and administrative expenses Operating income Less interest expense Net income SGSA Budget Cash Budget Company Name Budgeted Balance Sheet Date Source Cash Budget Sales/Cash Collections Material Budget End FO in Budget Assets Current assets: Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Plant and equipment Land Buildings and equipment Accumulated depreciation Plant and equipment.net Total assets Bog Balance Sheet Blogs.Cat Budget Beg S MOHSAA Budget Material Budget Cash Budget Liabilities and Stockholders' Equity Current liabilities: Accounts payable Note Payable (LOC) Total current liabilities Stockholders equity Common stock Retained earings Totat stockholders' equity Total liabilities and stockholders' equity Balance check (Please seen Beg Balance Sheet Beg +15. Cash Budget Untitled SALES BUDGET Budgeted sales of the company's only product for the next five months are: April........ 27,400 units May 36,100 units June 35,200 units July..... 30,900 units August...... 25,000 units The selling price is $11.10 per unit. SCHEDULE OF EXPECTED CASH COLLECTIONS Additional data: All sales are on account. The company collects 60% of these credit sales in the month of the sale; 35% are collected in the month following sale; and the remaining 5% are uncollectible. The accounts receivable balance on March 31 was $62,000 All of this balance was collectible. PRODUCTION BUDGET Additional data: The company desires to have inventory on hand at the end of each month equal to 15% of the following month's budgeted unit sales. United On March 31, 4,300 units were on hand. DIRECT MATERIALS BUDGET Additional data: 6 pounds of material are required per unit of product. Management desires to have materials on hand at the end of each month equal to 10% of the following month's production needs. The beginning materials inventory was 19,200 pounds. The material costs $0.42 per pound. . SCHEDULE OF EXPECTED CASH DISBURSEMENTS FOR MATERIAL Additional data: Fifty five percent of a month's purchases are paid for in the month of purchase; 45% is paid for in the following month. No discounts are given for early payment. The accounts payable balance on March 31 was $19,000. . . DIRECTBUDGET Additional data: Each unit produced requires 0.05 hour of direct labor. Each hour of direct labor costs the company $15.50 Management fully adjusts the workforce to the workload each month. MANUFACTURING OVERHEAD BUDGET Additional data: Variable manufacturing overhead is $26 per direct labor-hour. Fixed manufacturing overhead is $54,700 per month. This includes $25,000 in depreciation, which is not a cash outflow. ENDING FINISHED GOODS INVENTORY BUDGET Additional data: The Company uses absorption costing in its budgeted income statement and balance sheet. Manufacturing overhead is applied to units of product on the basis of direct labor- hours. The company has no work in process inventories. . . . . SELLING AND ADMINISTRATIVE EXPENSE BUDGET Additional data: Variable selling and administrative expenses are $0.60 per unit sold. Fixed selling and administrative expenses are $65,000 per month and includes $16,000 in depreciation. CASH BUDGET Additional data: 1. A line of credit is available at a local bank that allows the company to borrow up to $100,000 in one-thousand-dollar increments. a. All borrowing occurs at the beginning of the month, and all repayments occur at the end of the month. b. The company does not have to make any payments until the end of the quarter. The interest rate is 10% annually. 2. Olympia desires a cash balance of at least $40,000 at the end of each month. The cash balance at the beginning of April was $14,200. 3. Cash dividends of $18,000 are to be paid to stockholders in April. C. 4. Equipment purchases of $137,000 are scheduled for May and $35,000 for June. This equipment will be installed and tested during the second quarter and will not become operational until July, when depreciation charges will commence