MASTER BUDGET & CAPITAL BUDGETING TEMPLATE

Instructions:
(1)
(2)
(3)
(4)

(5)

(6)

Working with your group select the name of your company and place It on all the schedules
As a group decide on what product you will be producing for the year.
(in order to employ all schedules you must manufacture a product.)
You may or may not wish to amend your beginning balance sheet in order to fit the scope of planned
operations.
Members of your group may take the remaining schedules and complete them individually. However
it would be well to complete the Sales and Production Schedule first as a group in order to have a better
idea of the scale needed for the remaining schedules.
Once that the other schedules are completed, make sure that they come together and represent a
cohesive financial plan for the year that would be received with favor by the Company's
Board of Directors.
Come prepared with your completed plan on a flashdrive to make your presentation to your peers
who will take a critical look at your overall plan.

E-Lan Electronics
Sales Budget (in units)
For the Quarter Ended March 31, 2017

Last Year's Sales in Units

Expected Increase in Sales
Budgeted Sales in Units
Selling Price per Unit
Total Sales
% of Sales Collected in the Period of the Sale
% of Sales Collected in the Period After the Sale

Accounts Receivable Beginning Balance

January Sales
February Sales
March Sales
Total Cash Colletions

January
200,000
15%
230,000
$38.00
$8,740,000
75%
22%

Month
February
March
Quarter 1
268,000
240,000
708,000
15%
15%
15%
308,200
276,000
814,200
$38.00
$38.00
$38.00
$11,711,600 $10,488,000 $30,939,600
Discount
Uncollectable

2%
3%

Schedule of Expected Cash Collections

$1,980,000
$1,980,000
$6,423,900
$1,922,800
$8,346,700
$8,608,026 $2,576,552 $11,184,578
$7,708,680 $7,708,680
$8,403,900
$10,530,826 $10,285,232 $29,219,958

E-Lan Electronics
Production Budget (in cases)
For the Quarter Ended March 31, 2017

Budgeted Sales in Cases

Add Desired Ending Inventory of Finsihed Goods
Total Needs
Less Beginning Inventory of Finished Goods
Required Production

Month
January
February
230,000
308,200
30,820
27,600
260,820
335,800
23,000
30,820
237,820
304,980

017
Month
March
Quarter 1
276,000
814,200
24,150
24,150
300,150
838,350
27,600
23,000
272,550
815,350

E-Lan Electronics
Direct Materials Budget (in cases)
For the Quarter Ended March 31, 2017

Required Production in Cases (Prod. Budget)

Raw materials Needed per Case
Production Needed
Add Desired Ending Inventory of Raw Materials (1)
Total Needs
Less Beginning Inventory of Raw Materials
Raw Materials to be Purchased
Cost of Raw Materials
Cost of Raw materials to be Purchased

Month
January
February
March
Quarter 1
Gizmo
Flobs
Gizmo
Flobs
Gizmo
Flobs
Gizmo
237,820
237,820
304,980
304,980
272,550
272,550
815,350
1
3
1
3
1
3
1
237,820
713,460
304,980
914,940
272,550
817,650
815,350
91,494
274,482
81,765
245,295
73,140
219,420
73,140
329,314
987,942
386,745
1,160,235
345,690
1,037,070
888,490
71,346
214,038
91,494
274,482
81,765
245,295
71,346
257,968
773,904
295,251
885,753
263,925
791,775
817,144
$
7.00 $
2.50 $
7.00 $
2.50 $
7.00 $
2.50 $
7.00
$1,805,776 $1,934,760 $2,066,757 $2,214,383 $1,847,475 $1,979,438 $5,720,008

Total Per Month

$3,740,536

% of Purchases Paid for in the Period of the Purchase

% of Purchases Paid for in the Period After the Purchase

Accounts Payable Beginning Balance

January Sales
February Sales
March Sales
Total Cash Colletions

Driect Materials Cost per Unit

$4,281,140

$3,826,913

$11,848,588

70%
30%
Schedule of Expected Cash Disbursements for Raw Materials
$1,640,000
$2,618,375.20
$1,122,160.80
$2,996,797.65
$4,258,375

14.50

$4,118,958

$1,284,341.85
$2,678,838.75
$3,963,181

$1,640,000
$3,740,536
$4,281,140
$2,678,839
$12,340,514

E-Lan Electronics
Direct Labor Budget (in cases)
For the Quarter Ended March 31, 2017

Required Production in Cases (Production Budget)

Direct Labor Hours per Case
Total Direct Labor Hours Needed
Direct Labor Cost Per Hour
Total Direct Labor Cost (1)
Direct Labor Unit Cost

Month
January
February
March
Quarter 1
237,820
304,980
272,550
815,350
0.80
0.80
0.80
0.80
190,256
243,984
218,040
652,280
$18.00
$18.00
$18.00
$18.00
$3,424,608 $4,391,712 $3,924,720 $11,741,040
$14.40

E-Lan Electronics
Manufacturing Overhead Budget
For the Quarter Ended March 31, 2017

Units to be Produced
Variable Costs - Indirect Materials
Varialble - Indirect Labor
Other Veriable Costs
Total Monthly Verialbe Costs
Fixed Costs - Salaries
Fixed Costs - Rent
Fixed Cost - Depreciation
Total Monthly Fixed Costs
Total manufacturing Overhead
Less: Depreciation
Cash Disbursements for Manufacturing Overhead
Total manufacturing Overhead (a)
Budgeted Direct Labor Hours (b)
Predetermined Overhead Rate for the Year = (a)/(b)

January
237,820
$
0.38
$
1.20
$
1.12
$ 642,114
$ 212,000
$ 16,000
$ 27,000
$ 255,000
$ 897,114
$ 27,000
$ 870,114

Month
February
304,980
$
0.38
$
1.20
$
1.12
$
823,446
$
212,000
$
16,000
$
27,000
$
255,000
$ 1,078,446
$
27,000
$ 1,051,446

$
$
$

March
272,550
###
###
###
735,885
###
###
###
255,000
990,885
###
963,885

Quarter 1
815,350
$
0.38
$
1.20
$
1.12
$ 2,201,445
$
636,000
$
48,000
$
81,000
$
765,000
$ 2,966,445
$
81,000
$ 2,885,445
$ 2,966,445
$
815,350
$
3.64

E-Lan Electronics
Ending Finished Goods Inventory Budget
(absorption costing basis)
For the Quarter Ended March 31, 2017
Item

Beginning Inventory

Production Cost per Case

Direct Materials
Gizmos
Flobs
Total Direct Materials
Direct Labor
Manufacturing Overhead
Unit Product Cost
Budgeted Finished Goods Inventory:
Units in Ending Inventory

Ending Inventory

Total

Quantity Cost/Unit
$0.00
1 $
3 $

7.00
2.50
$14.50
$14.40
$3.64
$32.54

24,150

24,150
$32.54
$785,798.67

E-Lan Electronics
Selling & Administrative Expense Budget
For the Quarter Ended March 31, 2017

Budgeted Sales in Units (Sales Budget)

Variable Expense per Unit - Sales Commission
Total Sales Commission Expense
Bad Debt Expense (3% of Sales)
Variable Selling & Administrative Expense
Fixed Selling & Administrative Expenses:
Salaries
Rent
Advertising
Other
Depreciation
Total Fixed Selling & Administrative Expenses
Total Selling & Administrative Expenses
Less: Depreciation Expense and Bad Debt Expense
Cash Disbursements for Selling & Administrative Expenses

January
230,000
$1.50
$345,000
$262,200
$607,200

Month
February
308,200
$1.50
$462,300
$351,348
$813,648

March
276,000
$1.50
$414,000
$314,640
$728,640

Quarter 1
814,200
$1.50
$1,221,300
$928,188
$2,149,488

$15,000
$17,000
$82,000
$6,700
$18,500
$139,200
$746,400
$280,700
$465,700

$15,000
$17,000
$82,000
$6,700
$18,500
$139,200
$952,848
$369,848
$583,000

$15,000
$17,000
$82,000
$6,700
$18,500
$139,200
$867,840
$333,140
$534,700

$45,000
$51,000
$246,000
$20,100
$55,500
$417,600
$2,567,088
$983,688
$1,583,400

E-Lan Electronics
Capital Expenditures Budget
For the Quarter Ended March 31, 2017

January
Purchase of Selling & Administrative Equipment
Purchase of Production Equipment
Variable Selling & Administrative Expense

Net Plant & Equipment as of 12/31/2016

Less: Depreciation - Manufacturing Overhead Budget
Less: Depreciation - Selling & Administration Budget
Net Plant & Equipment Book Value pm Beginning Balances
Add: New Equipment Purchases Durring Quarter
Net Plant & Equipment as of 12/31/2017

$0

Month
February

March
180,000
3,100,000
$3,280,000

$0

$ 7,800,000
$
81,000
$
55,500
$

7,663,500
$3,280,000
$ 10,943,500

Quarter 1
180,000
3,100,000
$3,280,000

E-Lan Electronics
Cash Budget
For the Quarter Ended March 31, 2017

Schedule
Cash Balance, Beginning
Add Receipts:
Collections from Customers
Total Cash Avaialable
Less Disbursements:
Direct Materials
Direct Labor
Manufacturing Overhead
Selling & Administrative
Equipment Purchases
Total Disbursements
Excess (Deficiency) of Cash Available over Disbursements
Financing:
Borrowings (at the Beginnings of Quarters)
Repayments (at the End of the Year)
Interest
Total Financing Kept
Cash Balance, Ending

Sales

Dir. Mat.
Dir. Lab.
Mfg. Ovh.
S&A

January
$
50,000
$
$

Month
February
$
50,000

8,403,900 $
8,453,900 $

10,530,826 $
10,580,826 $

$ 4,258,375 $
$ 3,424,608 $
$
870,114 $
$
465,700 $
$
$

4,118,958 $
4,391,712 $
1,051,446 $
583,000 $
$
9,018,797 $ 10,145,116 $
(564,897) $
435,709 $

611,277

$
$
$

$
3,620 $
614,897 $
50,000 $

$
(395,514)
9,805 $
(385,709) $
50,000 $

March
50,000

Quarter 1
50,000

10,285,232 $
10,335,232 $

29,219,958
29,269,958

3,963,181
3,924,720
963,885
534,700
3,280,000
12,666,486
(2,331,253)

$
$
$
$
$
$
$

12,340,514
11,741,040
2,885,445
1,583,400
3,280,000
31,830,399
(2,560,441)

2,375,207 $
$
6,046 $
2,381,253 $
50,000 $

2,986,484
(395,514)
19,471
2,610,441
50,000

E-Lan Electronics
Budgeted Income Statement Budget
For the Quarter Ended March 31, 2017

Sales
Cost of Goods Sold
Gross Margin
Selling & Administrative Expenses
Net Operating Income
Interest Expense
Net Income

Schedules
Sales
Sales, EFGI
S&A
Cash

$30,939,600
$26,492,641
$4,446,959
$2,567,088
$1,879,871
($19,471)
$1,860,400

Budgeted Balance Sheet

31-Mar-17
Assets
Current Assets:
Cash
Accounts Receivable
Raw Materials Inventory
Finished Goods Inventory
Total Current Assets
Net Plant and Equipment
Total Assets

$50,000
$2,307,360
$1,060,530
$785,799
$4,203,689
$10,943,500
$15,147,189

Liabilities and Stockholders Equity

Current Liabilities
Accounts Payable (Raw Materials)
Line of Credit
Total Current Liabilities
Stockholders' Equity
Common Stock
Retained Earnings
Net Income
Total Stockholder's Equity
Total Liabilities and Stockholders Equity

$1,148,074
$2,991,912
$4,139,986
$1,200,000
$7,946,803
$1,860,400
$11,007,203
$15,147,189

Comprehensive Problem Evaluation Form

Team Member Name

Involved

Contribution

Please evaluate your performance and the perfomance of the other members of your team
on a scale of 1 to 10 for each of the above categories

These to be submitted to Instructor separately by each team member

ation Form
Total Contribution

members of your team