Accounting help for astrologer

 KAYAKS, INC.
Balance Sheet
December 31, 2011

ASSETS
Cash-------$ 52,000
Accounts receivable----1,200,000
Raw materials inventory* ---120,000
Finished goods inventory** -----287,500
Plant assets, net of accumulated
Depreciation -----------2,135,000
Total Assets -----$ 3,794,500


LIABILITIES
Accounts payable ----$ 131,000
STOCKHOLDERS’EQUITY Common Stock---1,600,000
Retained Earnings ------2,063,500
Total Liabilities & SE -----$ 3,794,500
use in preparing the budget for 2012:

*40,000 pounds **1,000 kayaks

The following additional data is available for use in preparing the budget for 2012:

Cash collections (all sales are on account):
Collected in the quarter of sale------------40%
Collected in the quarter after sale---------60%
(Bad debts are negligible and can be ignored)
Cash disbursements for raw materials (all purchases are on account):
Cash paid in the quarter of purchase----70%
Cash paid in the quarter after purchase -----30%
Desired quarterly ending Raw materials inventory----40% of next quarter’s production needs.
Desired quarterly ending Finished goods inventory------ 10% of next quarter’s sales
Budgeted sales:
1st quarter 2012 ------------------------------------10,000 kayaks
2nd quarter 2012 ------------------------------------15,000 kayaks
3rd quarter 2012 ------------------------------------16,000 kayaks
4th quarter 2012 ------------------------------------14,000 kayaks
1st quarter 2013------------------------------------10,000 kayaks
2nd quarter 2013 ------------------------------------12,000 kayaks
Anticipated equipment purchases:
1st quarter 2012 ------------------------------------$30,000
2nd quarter 2012 ------------------------------------$0
3rd quarter 2012 ------------------------------------$0
4th quarter 2012 ------------------------------------$150,000
Quarterly dividends to be paid each quarter in 2012 ----$4,000
Expected sales price per unit ---------$400

Standard cost data:
Direct materials ----------10 pounds per kayak @ $3 per pound
Direct labor----------10 hours per kayak @ $20 per hour
Variable manufacturing overhead-----$5 per direct labor hour
Fixed manufacturing overhead (includes $9,000 depreciation)--- $103,125 per quarter
Variable selling expenses------------$25 per kayak
Fixed selling and administrative expenses:
Insurance -----------------------------------$45,000 per quarter
Sales salaries -------------------------------$30,000 per quarter
Depreciation --------------------------------$6,000 per quarter
Income tax rate -----------------------------30%
Estimated income tax payments planned in 2012:
1st quarter ------------------------------------$0
2nd quarter------------------------------------$50,000
3rd quarter------------------------------------$400,000
4th quarter ------------------------------------$500,000

Kayak’s desires to have a minimum cash balance at the end of each quarter of $50,000. In order to maintain this minimum balance, They may borrow from its bank in $10,000 increments with an interest rate of 6%. Money is borrowed at the beginning of the quarter in which a shortage is expected. Repayments of all or a portion of the principle (plus accrued interest on the amount being repaid) are made at the end of any quarter in which the cash balance exceeds the required minimum.

Requirements:
1.Use the above information to prepare the following components of the master budget:
a. Sales budget with a schedule of expected cash collections for each quarter and the year as a whole
b. Production budget for each quarter and the year as a whole
c. Direct materials purchases budget with a schedule of expected cash disbursements for materials for
i. each quarter and the year as a whole
d. Direct labor budget for each quarter and the year as a whole
e. Manufacturing overhead budget with expected cash disbursements for each quarter and the year as
i. a whole
f. Ending finished goods inventory budget for the year
g. Selling and administrative expense budget with expected cash disbursements for each quarter and
i. the year as a whole
h. Cash budget for each quarter and the year as a whole
i. Budgeted income statement for the year
j. Budgeted balance sheet for the end of the year