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Use the information to fill in the Sales Budget Schedule

WGT Balance Sheet
		01/01/2016
Cash		$ 22,000
Accounts Receivable		12,000
Inventory Raw Materials		350
FG Inventory		4,950
Land		8,000
Buildings and Equip		70,000
Accum Depr		(29,200)
Total Assets		$ 88,100
Accounts Payable		$ 2,580
Capital Stock		17,500
RE		68,020
Total Liab and Stockholders		$ 88,100

1. The marketing department projects the following sales levels:
Quarter 1, 2016		8,700	Gnomes
Quarter 2, 2016		9,800	Gnomes
Quarter 3, 2016		4,200	Gnomes
Quarter 4, 2016		3,800	Gnomes
Quarter 1, 2017		4,600	Gnomes
Quarter 2, 2017		2,800	Gnomes
The statues are expected to sell for		$40.00	EACH
1. WGT sell all merchandise on credit. Historically, WGT receives				60%	of each
quarter's sales during the quarter and		40%	in the next quarter.
2. WGT plans to stock the ending inventory of finished goods to equal					65%	of the next quarter's sales.
Finished Goods inventory at		01/01/2016	is 300 statues at a cost of $16.5 per unit.

3. The statues are made with both cement and plaster. The statues each require						7.00
pounds of cement at a cost of		$0.70	per pound.
In addition, the statues require	7	pounds of plaster at		$0.55	per pound. At
12/31/2015	WGT had 500 pounds of cement on hand and no plaster
on hand. WGT plans to keep		65%	of the cement and		65%	of the plaster required
required for next quarter's production in inventory at the end of each quarter.
WGT pays for purchases as follows:		70%	in the quarter purchased and			30%	in the quarter following
the purchase.
4. Each of the statue requires		0.7	hrs of direct labor at		$6.50	per hour. Employees are paid
on the last day of each month for that month's work. Other costs are paid in the quarter unless otherwise noted.
5. Variable overhead is estimated at		$4.00	per direct labor hour. Fixed overhead costs are					$40,000
per year. Fixed overhead includes depreciation of			$10,000	per year.
6. Variable selling and administrative costs are			$5.00	per unit. Fixed selling and administrative costs are
$30,000	per year. (This includes			$15,000	of depreciation per year)
7. WGT makes quarterly income tax payments of			$8,000	The coprorate income tax rate is				30%	of net
before taxes (consider underpayments on your balance sheet).

	8. WGT pays quarterly dividends of		$5,000	.
	9. WGT will purchase additional equipment using cash on the following schedule
	(depreciation is already included above):
	Quarter 1		$ 15,000
	Quarter 2		$ 5,000
	Quarter 3		$ -
	Quarter 4		$ -
	10. WGT has to maintain a minimum cash balance of				$10,000	All borrowings are made at the end of the
	quarter and paid back at the end of the first quarter where there is a cash surplus to make the debt payments.
	All borrowings and repayments are made in $1,000 increments. Interest is paid at the time of
	repayment and is calculated at		3.50%	per year (no Compounding).

Schedule 1: Sales Budget	Q1	Q2	Q3	Q4	Total
Sales in Units
x sales price
Sales revenue
Cash received from current quarter sales
Accounts Receivable from current quarter sales

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