Hampton Freeze

HAMPTON FREEZE INC. SALES BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012

Budgeted sales in cases Selling price per case Total Sales

$ $

1 10,000 20.00 $ 200,000 $

QUARTER 2 30,000 20.00 $ 600,000 $

Precentage of collected in the period of the sales Precentage of collected in the period after the sales 70% Account receivable, beginning balance Q1 sales

2

Q2 sales

3

Q3 sales

4

Q4 sales

5

Total cash collections

6

1

Schedule of Expected Cash collections $

90,000

$

140,000

$

$

60,000

$

420,000

230,000 $

3 40,000 20.00 $ 800,000 $ 70% 30% 30 %

$

180,000

$

560,000

480,000 $

4 20,000 20.00 400,000

$

240,000

$

280,000

740,000 $

520,000

$ $

YEAR 100,000 20.00 2,000,000

$

90,000

$

200,000

$

600,000

$

800,000

$

280,000

$

1,970,000

HAMPTON FREEZE INC. PRODUCTION BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012

Budgeted sales (prev sales budget) Add desired ending inventory of finished goods Total Needs Less Beginning inventory of finished goods Required production

1 10,000 6,000 16,000 2,000 14,000

QUARTER 2 30,000 8,000 38,000 6,000 32,000

3 40,000 4,000 44,000 8,000 36,000

4 20,000 3,000 23,000 4,000 19,000

Assum ed YEAR 100,000 3,000 103,000 2,000 101,000

HAMPTON FREEZE INC. DIRECT MATERIAL BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012

QUARTER 2 32,000

1 14,000

Required production in cases

3 36,000

Raw materials needed per case (pounds) Production needs (pounds)

15 210,000

15 480,000

15 540,000

Add desired ending inventory of raw materials Total Needs

48,000 258,000

54,000 534,000

28,500 568,500

Less beginning inventory of raw materials Raw materials to be purchased

21,000 237,000

48,000 486,000

54,000 514,500

Cost of raw material per pounds

$

0.20

$

0.20 $

0.20

Cost of raw material to be purchased

$

47,400

$

97,200 $

102,900

Precentage of collected in the period of the sales Precentage of collected in the period after the sales

50% 50% Schedule of Expected Cash Disbursement of materials

Account receivable, beginning balance Q1 sales

3

Q2 sales

4

Q3 sales

5

Q4 sales

5

Total cash collections

6

2

$

25,800

$

23,700

$

$

23,700

$

48,600 $

48,600

$

51,450

49,500 $

72,300

$

100,050

Assumed 4 19,000

YEAR 101,000

15 285,000

### 1,515,000

22,500 307,500

### 1,537,500

28,500 279,000

21,000 1,516,500

$

0.20

$

55,800

### $

303,300

$

25,800

$

47,400

$

97,200

$

51,450

$

102,900

$

27,900

$

27,900

79,350

$

301,200

$

HAMPTON FREEZE INC. DIRECT LABOR BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012

Required production in cases Direct labor-hours per case Total direct labor-hours needed Direct labor cost per hour

$

1 14,000 0.40 5,600 15.00 $

Total direct labor cost*

$

84,000 $

QUARTER 2 32,000 0.40 12,800 15.00 $ 192,000 $

3 36,000 0.40 14,400 15.00 216,000

$ $

4 19,000 0.40 7,600 15.00 $ 114,000

$

YEAR 101,000 0.40 40,400 15.00 606,000

HAMPTON FREEZE INC. MANUFACTURING OVERHEAD BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012

1 5,600

Budgeted direct labor-hours Variable manufacturing overhead rate Variable manufacturing overhead

$ $

4.00 $ 22,400 $

QUARTER 2 12,800

3 14,400

4.00 51,200

4.00 57,600

$ $

Fixed manufacturing overhead Total manufacturing overhead

60,600 83,000

60,600 111,800

60,600 118,200

Less depreciation

15,000

15,000

15,000

68,000 $

96,800

Cash disbursements for manufacturing overhead Total manufacturing overhead (a) Budgeted direct labor-hours (b) predetermined overhead rate for the year (a/b)

$

$

103,200

4 7,600 $ $

$

YEAR 40,400

4.00 30,400 $

### 161,600

60,600 91,000

242,400 404,000

15,000

60,000

76,000 $

344,000

$

404,000 40,400

$

10.00

HAMPTON FREEZE INC. ENDING FINISHED GOODS INVENTORY BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012

Item

Quantity

Cost

Production per case: Direct materials Direct labor

15 pounds 0.4 hours

$ $

0.20 per pound 15.00 per hour

Manufacturing overhead

0.4 hours

$

10.00 per hour

Unit product cost Budgeted finished goods inventory: Ending finished goods inventory Unit Product Cost Ending finished goods inventory

Total $ $

3.00 6.00

$

4.00

$

13.00

3,000 $

13.00

$

39,000.00

HAMPTON FREEZE INC. SELLING AND ADMINISTRATIVE EXPENSE BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012

Budgeted sales in cases Variable selling and administrative expense per case Variable selling and administrative expense Fixed selling and administrative expense: Advertising Executive salaries Insurance Property taxes

$ $

Depreciation Total fixed selling and administrative expense Total selling and administrative expense

$

Less depreciation Cash disbursement for selling and administrative expenses

1 10,000

QUARTER 2 30,000

3 40,000

1.80 $ 18,000 $

1.80 54,000 $

### 72,000

20,000 55,000 10,000 4,000

20,000 55,000 10,000 4,000

### ### ### ###

10,000

10,000

###

99,000 117,000 $ 10,000

$

107,000 $

99,000 153,000 $ 10,000 143,000 $

99,000 171,000 ### 161,000

4 20,000 $ $

$

1.80 $ 36,000 $

1.80 180,000

20,000 55,000 10,000 4,000

80,000 220,000 40,000 16,000

10,000

40,000

99,000 135,000 $ 10,000

$

YEAR 100,000

125,000 $

396,000 576,000 40,000 536,000

HAMPTON FREEZE INC. CASH BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012

TAB Cash balance, beginning Add receipts: Collections from customers Total cash available Less disbursements: Direct materials Direct labor Manufacturing overhead Selling and administrative Equipment purchases

QUARTER $

Sales budget

$

230,000

$

272,500

Direct material Direct labor Manufacturing overhead Selling & Admin

49,500 84,000 68,000 107,000 50,000

Dividends Total Disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings (at the beginning quarters) Repayments (at the end of the year) Interest Total Financing Cash balance, ending

1 42,500.00

8,000 $

366,500 (94,000.00)

$

130,000.00

$ $

130,000.00 36,000.00

INC.

MBER 31, 2012

$

QUARTER 2 36,000.00 $

$ $

3 33,900.00 $

4 165,650.00 $

YEAR 42,500.00

480,000 $

740,000 $

520,000 $

1,970,000

516,000 $

773,900 $

685,650 $

2,012,500

72,300 192,000 96,800 143,000 40,000

100,050 216,000 103,200 161,000 20,000

79,350 114,000 76,000 125,000 20,000

301,200 606,000 344,000 536,000 130,000

8,000

32,000

8,000 $ $

$ $

552,100 (36,100.00) $

### 608,250 165,650.00 $

70,000.00

70,000.00 $ 33,900.00 $

422,350 263,300.00 $ $

$ $ - $ 165,650.00 $

(200,000.00) (21,900.00) $ (221,900.00) $ 41,400.00 $

1,949,200 63,300.00 200,000.00 ### (21,900.00) (21,900.00) 41,400.00

HAMPTON FREEZE INC. BUDGETED INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2012

Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income interest expense Net Income

See Sales tab See sales & Ending inventory

2,000,000 1,300,000 700,000 576,000 124,000 21,900

See selling & Admin See cash $

102,100

HAMPTON FREEZE INC. BUDGETED BALANCE SHEET FOR THE YEAR ENDING DECEMBER 31, 2012 Assets Current assets: Cash Account receivable Raw materials inventory Finished goods inventory Total current assets Plant and equipment: Land Buildings and equipment Accumulated depreciation

$ $ $

41,400.00 120,000.00 4,500.00

$

39,000.00 $

204,900.00

Plant and equipment, net

$

518,000.00

Total Assets

$

722,900.00

$

27,900.00

$ $

695,000.00 722,900.00

$ $ $

80,000.00 830,000.00 (392,000.00)

Liabilities and Stockholder's equity Current liabilities: Account payable (raw materials) Stockholder's equity: Common stock Retained earnings Total Stockholder's equity Total liabilities and stockholder's equity

$ $

175,000.00 519,100.00

balanced sheet 2011, no change balanced sheet 2011 + total additional equipment on cash budget balanced sheet 2011 + MO + Selling & Admin

balanced sheet 2011, no change