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You will prepare a one year master budget with the data contained in SUPERBUD. This master budget WILL contain the following budgets Sales Sales Collections Production Direct Materials (including purchasing schedule) Direct Labor Manufacturing Overhead Selling and Admin Expenses Cash Budget Income Statement (one for EACH month) Balance Sheet (one for EACH month)

two profitability ratios (one for EACH month) and graphed over the year two liquidity ratios (one for EACH month) and graphed over the year two solvency ratios (one for EACH month) graphed over the year

SUPERBUD
Twelve-Month Master Budget
Figaro Incorporated
Balance Sheet, December 31, 2000
Cash					$13,750
Accounts receivable					49,460
Raw materials					25,668
Finished goods					22,740
Land					40,000
Plant and equipment				$275,000
Less: accumulated depreciation				62,000	213,000
Total assets					$364,618
Accounts payable to suppliers					$13,470
Common stock				$60,000
Retained earnings				291,148	351,148
Total liabilities and equity					$364,618
	Projected unit sales		Gnu	Tse
	January		2,000	3,000
	February		1,800	4,000
	March		1,600	5,000
	April		1,600	6,000
	May		2,000	6,000
	June		4,000	6,000
	July		6,000	5,000
	August		7,000	4,000
	September		9,000	3,000
	October		7,000	2,500
	November		6,000	2,000
	December		4,000	2,500
	January		3,000	3,000
	February		2,000	4,000
Selling price of Gnu per unit				$34.00
Selling price of Tse per unit				$12.00
Desired finished goods inventory
(% of next month's unit sales)				30%
Desired raw materials inventory
(% of next month's unit sales)				60%
Raw materials needed in production			Gnu	Tse
Hyun			3	1
Esta			5	1
Beginning inventory			Units	Cost
Gnu			600	$25.00
Tse			900	$8.60
Hyun			5,772	$1.50
Esta			8,100	$2.10
Collections from customers
Collected in the month of sale				60%
Collected in the following month				40%
Payment of purchases
Paid in the month of purchase				80%
Paid in the following month				20%
Direct labor time to produce one unit
Gnu				40	minutes
Tse				20	minutes
Cost of direct labor (per hour)				$9
Factory overhead (per direct labor hour)				$6
Fixed selling and administrative				$6,000	per month
Variable selling and administrative				10%	of sales
Plant and equipment depreciation				$7,200	per year

Superbud Check figures

January Sales GNU	$68,000
January Sales TSE	$36,000
January cash receipts	$111,860
January production GNU	1,940 units
January production TSE	3,300 units
January Total HYUN purchase	9,120 units
January Total Esta purchase	13,000 units
January Purchase HYUN	9,060 units
January Cost HYUN	$13,590
January Purchase Esta	12,700 units
January Cost Esta	$26,670
January cash disbursement raw materials	$45,678
January cash disbursement direct labor	$21,540
January cash disbursement overhead	$13,760
January cash disbursement selling & admin	$16,400
January Ending Cash	$28,232
February Ending Cash	$38,096
December Ending Cash	$315,769
January Net Income	$11,800
February Net Income	$12,880
December Net Income	$21,900
Total Net Income for the Year	$327,000
January Total Assets	$371,000
February Total Assets	$384,324
December Total Assets	$689,637

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