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    Accounting

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    Erica Ramos
    Hampton Freeze Inc.'s statement of financial position as of December 31, 2014 shows total current assets of $100,830 including cash of $30,000, total assets of $588,830, total current liabilities of $30,000, and total stockholders' equity of $558,830.

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    Accounting

    Uploaded by

    Erica Ramos
    12 views1 page
    Hampton Freeze Inc.'s statement of financial position as of December 31, 2014 shows total current assets of $100,830 including cash of $30,000, total assets of $588,830, total current liabilities of $30,000, and total stockholders' equity of $558,830.

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    Hampton Freeze Inc.'s statement of financial position as of December 31, 2014 shows total current assets of $100,830 including cash of $30,000, total assets of $588,830, total current liabilities of $30,000, and total stockholders' equity of $558,830.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    12 views1 page

    Accounting

    Uploaded by

    Erica Ramos
    Hampton Freeze Inc.'s statement of financial position as of December 31, 2014 shows total current assets of $100,830 including cash of $30,000, total assets of $588,830, total current liabilities of $30,000, and total stockholders' equity of $558,830.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Hampton Freeze, Inc.

    Statement of Financial Position


    December 31, 2014

    Assets
    Current assets:
    Cash $30,000.00
    Accounts receivable 60,000.00
    Raw materials inventory 2,520.00
    Finished goods inventory 8,310.00
    Total current assets $100,830.00
    Plant and equipment
    Land $80,000.00
    Building and equipment 700,000.00
    Accumulated depreciation -292,000.00
    Plant and equipment, net 488,000.00
    Total assets $588,830.00

    Liabilities and Stockholders' Equity


    Current liabilities:
    Accounts payable $30,000.00
    Stockholders' equity:
    Common stock $108,930.00
    Retained earnings 449,900.00
    Total stockholders' equity 558,830.00
    Total liabilities and stockholders' equity $588,830.00

    Hampton Freeze Inc.


    Budgeting Assumptions
    For the Year Ended December 31, 2015

    Quarter 2016
    Sales Budget 1 2 3 4 1
    Budgeted sales in cases 5,000 10,000 15,000 20,000 25,000
    Selling price per case $30.00
    Percentage of sales collected in the quarter of sale 80%
    Percentage of sales collected in the quarter after sale 20%

    Production Budget
    Percentage of next quarter's sales in ending finished goods 12%

    Direct Materials Budget


    Pounds of sugar per case 10
    Cost per pound of sugar $0.30
    Percentage of next quarter's production needs in ending inventory 15%
    Percentage of purchases paid in the quarter purchased 65%
    Percentage of purchases paid in the quarter after purchase 35%

    Direct Labor Budget


    Direct labor-hours required per case 35%
    Direct labor cost per hour $16.00

    Manufacturing Overhead Budget


    Variable manufacturing overhead per direct labor-hour $6.00
    Fixed manufacturing overhead per quarter $41,265.00
    Depreciation per quarter $12,950.00

    Selling and Administrative Expense Budget


    Variable selling and administrative expense per case $2.00
    Fixed selling and administrative expense per quarter
    Advertising $22,000.00
    Executive salaries $57,000.00
    Insurance $12,000.00
    Property tax $6,000.00
    Depreciation $8,000.00

    Cash Budget
    Minimum cash balance $40,000.00
    Equipment purchases $25,000.00 $35,000.00 $15,000.00 $45,000.00
    Dividends per quarter $10,000.00
    Simple interest rate per quarter 9%
    The company would, as far as it is
    able, repay
    Loan the loan
    borrowings in plus accumulated
    increments of interest at the end of the year. $10,000.00

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