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Income Statement and Cash Flow Statement

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Please open the attached PDF file and then answer 2 question below using the information in the attached PDF file.

Question #1: Please develop a budgeted Income Statement.

Question #2: Complete a cash flow statement on a quarterly bases (assume that annual expenses are evenly dispersed on a quarterly bases) using the information in the attached PDF file.

A. There are 2 products: Car Batteries and Boat Batteries

B. There are 2 sales regions: Southeast and Southwest

C. There are 2 manufacturing divisions: Production and Assembly

D. Sales Prices: Car Batteries-$30.00; Boat Batteries-$35.00

E. There are 2 raw materials for each battery: Plastic and Electrodes

F. Raw materials prices: Plastic-$1.00: Electrodes—$2.00

G. Average Direct Labor Rates (per hour): Production-$4.00; Assembly- $3.00

H. The Manufacturing overhead rates (based on Direct Labor) are Production $2.00; Assembly $1.00

I. The order cost is $15.00

J. The annual carrying cost per unit of inventory is $1.50

K. Product Specification (see attachment for table)

L. Planned Sales (units). Planned Sales (units) (Sales are 95 % cash. The
balance of the sales is received in the following quarter. There is no bad
debt).

(see attachment for table)

M. Inventory Levels (units) - Assume no work in process:

(see attachment for table)

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The expert develops a budgeted income statement. The cash flow statements are determined.

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Please find response to your question in the attached excel file: 537330 Income Statement and ...

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