Analyze Financial Result and Plan for Subsequent Periods - Accounting Assignment Help

Assignment Task

Assignment #4 – Developing a Master Budget This assignment relates to the following Course Learning Activity:
CLR 5: Analyze financial result and plan for subsequent periods.
Using spreadsheet software create a multi-period master budget for manufacturing company.
Activity – After reviewing Module 6 - Instructor’s Notes and completing an internet search, prepare a 12-month Master Budget for a company of your choosing. It can be a company that you are closely connect too or one randomly selected.
Here is a website that provides valuable information on preparation of a Master Budget – Please DO NOT limit your search to only this.
Components of the Budget
- https://www.principlesofaccounting.com/chapter-21/components/ (1)
Remember: As you are preparing the Master Budget, some information is NOT provided. You are required to decide or predict or forecast this information.
Guidelines
You have 3 weeks to complete this assignment. Assignment #4 is released to you in the 6th week (module 6) of this course and is due at the end of week 8 (module 8). Your facilitator will advise you of these dates and any further information.
Tasks:
Please provide a brief introduction for the company. The introduction should include:
Name of company
Location of company
Name of owner
Nature of the business.
Type of product
Fiscal period
For the company that you have selected - Prepare a 12-month Master Budget. Your submission must show each month’s activities – example January, February, March etc.
Here are some considerations to include:
You must forecast your sales, purchases, direct labour and manufacturing overhead for each month and any other information as required.
All sales are on accounts
Expected collections are to be 50% in the month of the sale, 30 % in the first month following the sale, and 20% in the second month following the sale.
Production the company will end each month with sufficient inventory to cover 20% of the following month’s sales. The newyear started with 600 units in stock and plan to finish each year with 825 units in stock.
It pays 60% of direct materials purchase in cash in the month of purchase and the balance is due in the month following the purchase. It pays all other items above in the month incurred, except for selling and administrative expenses that include $1,000 of amortization per month.
Cost of Goods Sold: 60% of the sale and desired ending inventory 20% of next month’s sale
Payment Pattern: 40% of purchases paid in the month of the purchase and 60% paid in the next month.
Cash in Bank – January 2020 is $20,000.
The company expected to purchase equipment in March 2020 for $10,000.
Dividend paid per quarter $2,000.
Selling and administration expense per month $ 40,000.
Equipment balance as at December 31, 2029 is $60,000. Accumulated depreciation – straight line; 5 years
Common stock is $ 6,000
The company has access to a line of credit with the bank with the following terms – interest rate is 1% per month on the first day of the month, interest payable is calculated at 1% of the previous month’s outstanding balance. Borrowings in a given month are taken out at the beginning of the month.
The company wishes to maintain a minimum balance of $10,000 at all times.
Ensure that your total boxes correctly total up the rows in your columns.
Submission – in an Excel Spreadsheet
Brief introduction for the company – Spreadsheet 1 (5 Marks)
Master Budget in an excel spreadsheet – Spreadsheet 2. (80 marks)
GOOD LUCK!

SCORING RUBRIC – Master Budget (30%]
ITEM REQUIREMENTS MARK
Company Introduction Name and location of company is included.
Name of owner and nature of the business is included.
Type of product are included
Fiscal period is included /5
Master Budget Heading is complete with Company Name, Name of report and date centered at the top three lines
All components of Master Budget – Sales budget; Production budget; Labour budget; Materials Budget; Selling and Administration budget; Factory Overhead Budget; Ending finished goods; Budgeted Financial Statements – are 

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