 Hello in this lecture, we're gonna finish up the master budget We're finally down to the balance sheet where we can tie everything together So I won't go through the whole thing again. We're on the we're on the balance sheet We're on the last piece. This is the last piece that we need to complete and within the balance sheet, of course We have our assets which we will start off with as normal Assets and we're gonna start off with our cash cash being the first asset now Where's the cash gonna come from? It's gonna come from our cash flow budget So we're gonna scroll up here and say equals I'm gonna find my cash flow and we ended off here at this 40,000 we got this 40,000 there. That's our Indian cash from the cash flow and The next thing we have is the accounts receivable now for the accounts receivable. We're gonna have to do some Calculation over here. We're gonna go over here. I'm gonna do another little side calculation we're gonna have to have the beginning receivables plus the sales on account and Then we're gonna see how much we collected on those sales on account to get the ending Accounts receivable. So the beginning receivables if we scroll over here, we're gonna say where do we start off with that? We go all the way up here and we say that on the balance sheet. We started off with 342 248 342 248, that's where we began with then we had sales total Sorry about that. We got over here total sales if we scroll through our sales budget all the way up top sales budget We had one million four forty seven two hundred in sales And then they told us that 70% of those sales. I'm just gonna say 70% It's already formatted as a percentage home tab Numbers group percent over here. I'm gonna go ahead and make all this bold here Just so you can see it a bit better and make it all bold. So that's a 70% are on credit The rest are cash sales. So they don't affect our receivables. We got cash at the time of sale So we're gonna say of the total sales one million four forty seven two Times 70% of those were on credit meaning they increased our receivable We didn't get cash for them then we're gonna have the cash collected from credit sales the stuff that we collected on the sale So I'm gonna say this equals and I'm gonna have to sum this up I'm gonna hit some and we're gonna scroll over to where we have this budgeted I'm gonna scroll up here. We have the budgeted for three months out. So up here. We have Collections of receivables. So that's on July August and September if we sum of those up then we get the one million one seven 17608 so that means that the receivables at the end of the day This is what we started with then we had sales plus this on account Those are the portion sales on account minus the fact that we collected on these these are the collections that we had on Account means that we'll have an Indian receivable of 337 680 3 3 7 680 that is what's going to be in the receivable over here. So we have accounts receivable And I'm gonna say this number equals this 3 3 7 6 80 Next we're gonna have the raw materials so raw materials in this so we'll do a quick calculation over here as well for the raw materials Inventor we're gonna start off with the Indian raw materials what we have and it's gonna be in units We know what we had in units. So I'm gonna say this equals I'm gonna scroll up to our raw materials budget up here. So we're gonna scroll up to The raw materials budgets and we see this Indian budgeted inventory. We had this 4,000 right there We're gonna take that 4,000 and we're gonna multiply times 21 because it's cost 21 per unit 21 dollars per unit So there's the units 21 dollars per unit Therefore we equal the units of 4,000 that we had at the end times 21 dollars per unit that gives us the 84,000 so this number here the raw materials inventory in dollars is of course the 84,000 alright, so next thing that we are going to have is the finished goods inventory So the finished goods inventory is gonna equal We're just gonna scroll up to the cost of goods sold calculation. We have it right here We calculated right there. So it's a 321 360 if you want to look how to calculate that again You could go back to that video and check out the calculation to get to that number now. We're gonna go to the total Current assets these are all of our current assets we're just gonna add these up of course like we could underline it home tab font group underline and then scroll over here and have this equals the sum of The 40 down to the 321 660 and that'll give us our total current assets and then of course the next piece that we will have is going to be Equipment, so we have long-term assets. We've got equipment Property plant equipment includes equipment and the equipment's gonna include what we started with So if we scroll back over here and we take a look at where we were at at the beginning We had 600,000 in equipment so we had 600,000 and you'll recall that that we purchased more So I'm gonna say this equals the 600,000 plus and I'm gonna say That this is going to be increased if we go to the cash budget We can see it there that we purchased equipment for three 130 cash now of course again, this is assuming we paid all cash for it in this problem We did we paid 130 cash therefore we increased it to the 730 then we have the accumulated depreciation. So we've got accumulated depreciation and The accumulated depreciation once again, it's gonna be what we had before up here plus the the new change that happened So the accumulated depreciation we was before 150,000 so we're gonna say we're gonna go back down here. I'm gonna say this equals 150,000 Plus I'm gonna say the sum of and the accumulated depreciation was that was under the overhead and It was the fixed portion. So this fixed portion of overhead this 21 per month that that is the Depreciation so we're gonna say I'm gonna sum this up. We could have just picked up the 63 over here But it's the 150,000 plus the 63,000 or the 21 plus the 21 plus the 21 and There we have that then If we have the equipment net Equipment and we take the net value of that meaning the equipment plus the accumulated depreciation To get the book value. We can also call the book value of the equipment. That's gonna equal the 730,000 minus the accumulated depreciation remember the cumulative depreciation is a contra asset book value then of the equipment being 517,000 now we can have our total assets Total assets. We're just gonna sum up the outer column