Hampton Freeze, Inc.

Balance Sheet
31-Dec-13

Assets
Current assets:
Cash $ 42,500
Accounts receivable 90,000
Raw Materials inventory (21,000 pounds) 4,200
Finished goods inventory (2,000 cases) 26,000
Total current assets $ 162,700
Plant and equipment:
Land 80,000
Buildings and equipment 700,000
Accumulated depreciation (292,000)
Plant and equipment, net 488,000
Total assets $ 650,700

Liabilities and Stockholders' Equity

Current liabilites:
Accounts Payable $ 25,800
Stockholders' equity:
Common Stock $ 175,000
Retained earnings 449,900
Total stockholders' equity 624,900
Total liabilites and stockholders' equity $ 650,700
 Hampton Freeze, Inc.
Budgeting Assumptions
For the Year Ended December 31, 2014

All 4
Quarters
Quarter
Sales Budget 1 2
Budgeted sales in cases 10,000 30,000
Selling price per case $ 20.00
Percentage of sales collected in the quarter of sale 70%
Percentage of sales collected in the quarter of after sale 30%

Production Budget
Percentage of next quarter's sales in ending finished goods inventory 20%

Direct Materials Budget

Pounds of sugar per case 15
Cost per pound of sugar $ 0.20
Percentage of next quarter's production needs in ending inventory 10%
Percentage of purchases paid in the quarter purchased 50%
Percentage of purchases paid in the quarter after purchased 50%

Direct Labor Budget

Direct labor-hours required per case 0.40
Direct labor cost per hour $ 15.00

Manufacturing Overhead Budget

Variable manufacturing overhead per direct labor-hour $ 4.00
Fixed manufacturing overhead per quarter $ 60,600
Depreciation per quarter $ 15,000

Selling and Administrative Expense Budget

Variable selling and administrative expense per case 1.8
Fixed selling and administrative expense per quarter:
Advertising $ 20,000
Executive salaries $ 55,000
Insurance $ 10,000
Property tax $ 4,000
Depreciation $ 10,000

Cash Budget
Minimum cash balance $ 30,000
Equipment purchases $ 50,000 $ 40,000
Dividends $ 8,000
Simple interest rate per quarter 3%
Quarter
3 4
40,000 20,000

$ 20,000 $ 20,000
 Hampton Freeze, Inc.
Sales Budget
For the Year Ended December 31, 2014

Quarter
1 2 3
Budgeted unit sales (in cases) 10,000 30,000 40,000
Selling price per unit $ 20.00 $ 20.00 $ 20.00
Total sales $ 200,000 $ 600,000 $ 800,000

70% 30%
Schedule of Expected Cash Collections
Beginning accounts receivable $ 90,000
First-quarter sales 140,000 $ 60,000
Second-quarter sales 420,000 $ 180,000
Third-quarter sales 560,000
Fourth-quarter sales - - -
Total cash collections $ 230,000 $ 480,000 $ 740,000
r
4 Year
20,000 100,000
$ 20.00 $ 20.00
$ 400,000 $ 2,000,000

$ 90,000
200,000
600,000
$ 240,000 800,000
280,000 280,000
$ 520,000 $ 1,970,000
 Hampton Freeze, Inc.
Prodution Budget
For the Year Ended December 31, 2014
(in cases)

Quarter
1 2 3 4
Budgeted unit sales (Schedule 1)
Add desired units of ending finished goods inventory
Total needs
Less units units of beginning finished good inventory
Required production in units
Assumed

Year
 Hampton Freeze, Inc.
Direct Materials Budget
For the Year Ended December 31, 2014

Quarter
1 2 3
Required production in cases (Schedule 2)
Units of raw materials needed per case
Units of raw materials needed to meet production
Add desired units of ending raw materials inventory
Total units raw materials needed
Less units of beginning raw materials inventory
Units of raw materials to be purchased
Cost of raw materials per pound
Cost of raw materials to be purchased

50% 50%
Schedule of Expected Cash Disbursements for Purchases of Materials

Beginning accounts payable $ 25,800

First-quarter purchases - $ -
Second-quarter purchases - $ -
Third-quarter purchases -
Fourth-quarter purchases - - -
Total cash disbursement for materials $ 25,800 $ - $ -
er
4 Year

Materials

$ 25,800
-
-
$ - -
$ - $ -
$ - $ 25,800
 Hampton Freeze, Inc.
Direct Labor Budget
For the Year Ended December 31, 2014

Quarter
1 2 3 4
Required production in cases (Schedule 2) - - - -
Direct labor-hours per case 0.40 0.40 0.40 0.40
Total direct labor-hours needed - - - -
Direct labor cost per hour $ 15.00 $ 15.00 $ 15.00 $ 15.00
Total direct labor cost - - - -
 Year
-
0.40
-
$ 15.00
-
 Hampton Freeze, Inc.
Direct Labor Budget
For the Year Ended December 31, 2014

Quarter
1 2 3
Budgeted direct labor-hours (Schedule 4) - - -
Variable manufacturing overhead rate $ 4.00 $ 4.00 $ 4.00
Variable manufacturing overhead $ - $ - $ -
Fixed Manufacturing overhead 60,600 60,600 60,600
Total manufacturing overhead 60,600 60,600 60,600
Less depreciation 15,000 15,000 15,000
Cash disbursement for manufacturing overhead $ 45,600 $ 45,600 $ 45,600

Total manufacturing overhead (a)

Budgeted direct labor-hours (b)
Predetermined overhead rate for the year (a)/(b)
er
4 Year
- -
$ 4.00 $ 4.00
$ - $ -
60,600 242,400
60,600 242,400
15,000 60,000
$ 45,600 $ 182,400

$ 242,400
-
#DIV/0!
 Hampton Freeze, Inc.
Ending Finished Goods Inventory Budget
(absorption costing basis)
For the Year Ended December 31, 2014

Item Quantity Cost Total

Production cost per case:
Direct materials 15.00 pounds $ 0.20 per pound $ 3.00
Direct labor 0.40 hours $ 15.00 per hour $ 6.00
Manufacturing overhead 0.40 hours #DIV/0! per hour #DIV/0!
Unit product cost #DIV/0!

Budgeted finished goods inventory:

Ending finished goods inventory in cases (Schedule 2) -
Unit product cost (see above) #DIV/0!
Ending finished goods inventory in dollars #DIV/0!
 Hampton Freeze, Inc.
Selling and Administrative Expense Budget
For the Year Ended December 31, 2014

Quarter
1 2 3
Budgeted units sales (Schedule 1) 10,000 30,000 40,000
Variable selling and administrative expense per case $ 1.80 $ 1.80 $ 1.80
Variable selling and administrative expense $ 18,000 $ 54,000 $ 72,000
Fixed selling and administrative expenses:
Advertising
Executive salaries
Insurance
Property taxes
Depreciation
Total fixed selling and administrative expenses - - -
Total selling and administrative expenseses 18,000 54,000 72,000
Less depreciation - - -
Cash disbursements for selling and administrative expenses $ 18,000 $ 54,000 $ 72,000
r
4 Year
20,000 100,000
$ 1.80 $ 1.80
$ 36,000 $ 180,000

- -
36,000 180,000
- -
$ 36,000 $ 180,000
 Hampton Freeze, Inc.
Cash Budget
For the Year Ended December 31, 2014

Quarter
Schedule 1 2 3
Beginning cash balance $ 42,500 $ 36,000 $ 33,900
Add cash receipts:
Collections from customers 230,000 480,000 740,000
Total cash available 272,500 516,000 773,900
Less cash disbursements:
Direct materials
Direct labor
Manufacturing overhead
Selling and administrative
Equipment purchases
Dividends
Total cash disbursements - - -
Excess (deficiency) of cash available over disbursements 272,500 516,000 773,900
Financing
Borrowings (at the beginnings of quarters) 130,000 70,000 -
Repayments (at the end of the year) - - -
Interest - - -
Total financing 130,000 70,000 -
Ending cash balance $ 402,500 $ 586,000 $ 773,900
er
4 Year
$ 165,650 $ 42,500

520,000 1,970,000
685,650 2,012,500

- -
685,650 2,012,500

- 200,000
(200,000) (200,000)
(21,900) (21,900)
(221,900) (21,900)
$ 463,750 $ 463,750
 Hampton Freeze, Inc.
Budgeted Income Statement
For the Year Ended December 31, 2014

Schedules
Sales 1 $ 2,000,000
Cost of goods sold 1,6 #DIV/0!
Gross margin #DIV/0!
Selling and administrative expenses 7 180,000
Net operating income #DIV/0!
Interest expense 8 (21,900)
Net income #DIV/0!
 Hampton Freeze, Inc.
Budgeted Balance Sheet
31-Dec-13

Assets
Current assets:
Cash $ 463,750 (a)
Accounts Receivable 120,000 (b)
Raw materials inventory - (c)
Finished goods inventory #DIV/0! (d)
Total current assets #DIV/0!
Plant and equipment:
Land 80,000 (e)
Buildings and equipment 830,000 (f)
Accumulated depreciation (352,000) (g)
Plant and equipment, net 558,000
Total assets #DIV/0!

Liabilities and Stockholders' Equity

Current liabilities
Accounts payable (raw materials) $ - (h)
Stockholders' equity:
Common stock, no par $ 175,000 (i)
Retained earnings #DIV/0! (j)
Total stockholders equity #DIV/0!
Total liabilities and stockholders equity #DIV/0!