Year 1
Year 1
Year 1
Other 41,000
Marketing and Administartive expenses are budgeted as follows:
Variable marketing costs:
Sales commission 40.625
Other marketing costs 16.25
Fixed marketing costs:
Sales salaries 100,000
Advertising 193,000
Other 78,000
Administrative costs:
Administrative salaries 254,000
Data processing services 103,000
Legal and other professional fees 180,000
Depreciation-building,furniture, and equipment 94,000
Taxes-other than income 160,000
Other 26,000
Additional:
Sales and Collections 5,185,000
Equipment sold 300,000
Depreciation 275,000
Equipment Purchased 320,000
Accounts Payable 15,000
Income tax rate 0.35
Income tax paid 252,000
Dividend 140,000
Interest rate 0.08
Gilbert Company
Statement of Financial Position
December 31, 2018
Asset Equities
Current Assets Current Liabilities
Cash 150,000 Accounts Payable
Accounts Receivble 220,000 Taxes Payable
Inventories 592,000 Current Portion of Long-term Debt
Other Current Assets 23,000 Total Current Liabilities
Total Current Assets 985,000 Long-term Liabilities
Total Liabilities
Long-term Assets
Property, Plant and equipment 2,475,000 Equity
Less: Accumulated Depreciation 850,000 Share Capital
Net 1,625,000 Retained Earnings
Total
Total Assets 2,610,000 Total Equities
Equities
140,000
156,000
f Long-term Debt 83,000
379,000
576,000
955,000
350,000
s 1,305,000
1,655,000
2,610,000
Sales Budget
For 2019
Materials
R S
Units required for production:
R 19,500
S 32,500
Add: Desired ending inventory 1,300 4,600
Total units required 20,800 37,100
Less: Beginning inventory 2,200 4,000
Units to be produced 18,600 33,100
Unit price 10 30
Total purchases 186,000 993,000
Direct Labor Budget
For2019
Sales 5,120,000
Less: Cost of Sales 3,199,935
Gross profit 1,920,065
Less: Marketing and Administrative costs 1,499,280
Net opearating profit 420,785
Less: Interst expense 52,720
Net income before taxes 368,065
Less: Provision for income taxes 128,823
Net income after taxes 239,242
Gilbert Manufacturing Company
Budgeted Statement of Financial Position
December 31, 2018
Asset Equities
Current Assets Current Liabilities
Cash 143,065 Accounts Payable
Accounts Receivble 155,000 Taxes Payable
Inventories 651,000 Current Portion of Long-term Deb
Other Current Assets 23,000 Total Current Liabilities
Total Current Assets 972,065 Long-term Liabilities
Total Liabilities
Long-term Assets
Property, Plant and equipment 2,495,000 Equity
Less: Accumulated Depreciation 949,000 Share Capital
Net 1,546,000 Retained Earnings
Total
Total Assets 2,518,065 Total Equities
Equities
ilities
s Payable 155,000
yable 32,823
Portion of Long-term Debt -
rrent Liabilities 187,823
rm Liabilities 576,000
abilities 763,823
apital 350,000
d Earnings 1,404,242
1,754,242
s 2,518,065