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Use this information for the questions IE-9 through IE-12 The following information applies to the questions displayed below Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sels its product to retalers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2017 and reports a balance sheet at December 31, 2016 as follows Endless Mountain Company Balance Sheet December 31, 2016 Assets Current assets s 46.200 260000 1,250 32.250 Accounts receivable (net Raw materlials Inventory (4.500 yerds) Finished goods inventory (1,500 units) Total current assets Plant and equipment S 349,700 900,000 (292.000 Buildings and equipment 608.000 Plant and equipment, net Total assets 5957700 Liabilises and Stockholders Equity Current labiities Accounts peysble $ 158.000 Stockholders' equty Common stock Retained earnings S 419,800 379.900 Total stockholders equity Totellabites and stockholders' equity 799700 $ 957700 The company'schief financial officer (CFO), in consulitation with various managers across the organization has developed the following set of assumptions to help create the 2017 budget 1 The budgeted unit sales are 12.000 units, 37,000 units, 15,000 units, and 25000 units for quarters 1-4, respectively. Notice that the company experiences peak sales in the second and fourth quarters. The budgeted selling price for the year is $32 per unit. The budgeted unit sales for the first quarter of 2018 is 13.000 units 2. All sales are on credt. Uncollectible accounts are negligible and can be ignored. Seventy five percent of all credit sales are collected in the quarter of the sale and 25% are collected in the subsequent Ouarter. 3. Each quarter's ending finished goods inventory should equal 15% of the next quarter's unt sales 4. Each unit of finished goods requires 3.5 yards of raw material that costs $3.00 per yard. Each quarter's ending raw materials inventory should equal % of the next quarter's producton needs. The estimated ending raw materiais inventory on 5. Seventy percent of esch quarter's purchases are paid for in the quarter of purctese 6. Direct laborers are paid $18 an hour and each unit of finished goods requires 0.25 direct labor-hours to complete. All direct 7. The budgeted variable manufacturing December 31, 2017 is 5,000 yards purchases are paid in the following quarter labor costs are paid in the quarter incun $150,000 including $20,000 of depreciation on equipment. The . The remaining 30% of each quarter's red overhead per direct labor-hour is $3.00 The quarterly fixed manufacturing overhead is number of direct labor-hours is used as the allocation base for the budgeted plantwide overhead rate. All overhead costs (excluding depreciation) are paid in the quarter incurred per quarter include advertising ( incurred take place on the first day of the querter. To the extent passible, the company vwill repay principal and interest on any is $125 per unit sold. The fixed selling and administrative expenses 8. The budgeted variabie seling and administrative expense $25.000), executive salarles (564.000L insurance ($12000 property tax ($8.000), and expense (58.000). All seling and administrative expenses (excluding depreciation) are paid in the quarter t cash balance at the end of each quarter of $30.000. Assume that any borrowings quarter on any borrowings on the last day of the fourth quarter. The company's lender imposes a simple interest rate of 3% per 10. Dividends of $15,000 wil be declared and paid in each quarter 11. The company uses a last-in, first-out (LIFO) inventory flow assumption. This means that the most recently purchased raw "first-out' to customers materials are the "first-out" to production and the most recently completed finished goods are the Use this information for the questions IE-9 through IE-12 The following information applies to the questions displayed below Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sels its product to retalers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2017 and reports a balance sheet at December 31, 2016 as follows Endless Mountain Company Balance Sheet December 31, 2016 Assets Current assets s 46.200 260000 1,250 32.250 Accounts receivable (net Raw materlials Inventory (4.500 yerds) Finished goods inventory (1,500 units) Total current assets Plant and equipment S 349,700 900,000 (292.000 Buildings and equipment 608.000 Plant and equipment, net Total assets 5957700 Liabilises and Stockholders Equity Current labiities Accounts peysble $ 158.000 Stockholders' equty Common stock Retained earnings S 419,800 379.900 Total stockholders equity Totellabites and stockholders' equity 799700 $ 957700 The company'schief financial officer (CFO), in consulitation with various managers across the organization has developed the following set of assumptions to help create the 2017 budget 1 The budgeted unit sales are 12.000 units, 37,000 units, 15,000 units, and 25000 units for quarters 1-4, respectively. Notice that the company experiences peak sales in the second and fourth quarters. The budgeted selling price for the year is $32 per unit. The budgeted unit sales for the first quarter of 2018 is 13.000 units 2. All sales are on credt. Uncollectible accounts are negligible and can be ignored. Seventy five percent of all credit sales are collected in the quarter of the sale and 25% are collected in the subsequent Ouarter. 3. Each quarter's ending finished goods inventory should equal 15% of the next quarter's unt sales 4. Each unit of finished goods requires 3.5 yards of raw material that costs $3.00 per yard. Each quarter's ending raw materials inventory should equal % of the next quarter's producton needs. The estimated ending raw materiais inventory on 5. Seventy percent of esch quarter's purchases are paid for in the quarter of purctese 6. Direct laborers are paid $18 an hour and each unit of finished goods requires 0.25 direct labor-hours to complete. All direct 7. The budgeted variable manufacturing December 31, 2017 is 5,000 yards purchases are paid in the following quarter labor costs are paid in the quarter incun $150,000 including $20,000 of depreciation on equipment. The . The remaining 30% of each quarter's red overhead per direct labor-hour is $3.00 The quarterly fixed manufacturing overhead is number of direct labor-hours is used as the allocation base for the budgeted plantwide overhead rate. All overhead costs (excluding depreciation) are paid in the quarter incurred per quarter include advertising ( incurred take place on the first day of the querter. To the extent passible, the company vwill repay principal and interest on any is $125 per unit sold. The fixed selling and administrative expenses 8. The budgeted variabie seling and administrative expense $25.000), executive salarles (564.000L insurance ($12000 property tax ($8.000), and expense (58.000). All seling and administrative expenses (excluding depreciation) are paid in the quarter t cash balance at the end of each quarter of $30.000. Assume that any borrowings quarter on any borrowings on the last day of the fourth quarter. The company's lender imposes a simple interest rate of 3% per 10. Dividends of $15,000 wil be declared and paid in each quarter 11. The company uses a last-in, first-out (LIFO) inventory flow assumption. This means that the most recently purchased raw "first-out' to customers materials are the "first-out" to production and the most recently completed finished goods are the

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