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

Q2 sales

Q3 sales

Q4 sales

Total cash collections

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

Q2 sales

Q3 sales

Q4 sales

Total cash collections

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