Chapter 22, Problem 8APSA

To determine

Concept Introduction:

Master Budget-

Master budget is a sum of all lower level budgets which are produced at different functional areas of the company. It helps in providing good coordination among all level managers. It also helps the manager in evaluating the actual performance and comparing it with the standards set by them.

Requirement 1-

To prepare:

Monthly sales budget

Answer to Problem 8APSA

A sales budget is a budget which is used to estimate the expected units of sales in dollars and also helps to determine the estimated earnings during a period.

DIMSDALE SPORTS COMPANY
Monthly sales budget (in units and sales value)
	January	February	March	Quarter
Sales in units	7,000	9,000	11,000	27,000
Selling price per unit	$55	$55	$55	$55
Dollar sales value($)	385,000	495,000	605,000	1,485,000

Explanation of Solution

Dollar sales value for each month is calculated as follows-

  $\begin{array}{l}Dollarsalesvalue=Salesinunits\times Sellingpriceperunit\hfill \\ DollarsalesvalueforJanuary=7,000\times \$55\hfill \\ \begin{array}{l}DollarsalesvalueforJanuary=\$385,000\\ \begin{array}{l}DollarsalesvalueforFebruary=9,000\times \$55\hfill \\ \begin{array}{l}DollarsalesvalueforFebruary=\$495,000\\ DollarsalesvalueforMarch=11,000\times \$55\\ DollarsalesvalueforMarch=\$605,000\\ DollarsalesvalueforQuarter=27,000\times \$55\\ DollarsalesvalueforQuarter=\$1,485,000\end{array}\hfill \end{array}\end{array}\hfill \end{array}$

Conclusion:

Thus, the monthly sales budget has been prepared both in units and sales value.

To determine

Concept Introduction:

Master Budget-

Master budget is a sum of all lower level budgets which are produced at different functional areas of the company. It helps in providing good coordination among all level managers. It also helps the manager in evaluating the actual performance and comparing it with the standards set by them.

Requirement 2-

To prepare:

Merchandise purchases budget

Answer to Problem 8APSA

Budgeted purchases:

Budgeted purchases are the estimates of purchases of a particular month based on the sales requirement and ending inventory requirement and the budgeted beginning inventory.

DIMSDALE SPORTS COMPANY
Monthly merchandise purchases budgets
	January	February	March	Quarter
Budgeted Sales for the month	7,000	9,000	11,000
Ending inventory in units	1,800	2,200	2,000
Total Needs	8,800	11,200	13,000
Less: Beginning inventory	(5,000)	(1,800)	(2,200)
Merchandise purchases in units required	3,800	9,400	10,800
Cost per unit	$30	$30	$30
Dollar value of purchases ($)	114,000	282,000	324,000	720,000

Explanation of Solution

First, ending inventory in units is required to be calculated-

Calculation of ending inventory in units is as under-

  $\begin{array}{l}Ending\text{ inven}toryrequirement=\text{ 20}\%ofNextMonthsExpectedsalesunits\\ Ending\text{ inven}toryrequirementforJanuary=20\%XExpectedsalesunitsforFebruary\\ Ending\text{ inven}toryrequirementforJanuary=20\%X\text{ 9},000units\\ Ending\text{ inven}toryrequirementforJanuary=1,800units\\ \\ Ending\text{ inven}toryrequirementforFebruary=20\%XExpectedsalesunitsforMarch\\ Ending\text{ inven}toryrequirementforFebruary=20\%X11,000units\\ Ending\text{ inven}toryrequirementforFebruary=2,200units\\ \\ Ending\text{ inven}toryrequirementforMarch=20\%XExpectedsalesunitsforApril\\ Ending\text{ inven}toryrequirementforMarch=20\%X\text{ 10,000}units\\ Ending\text{ inven}toryrequirementforMarch\text{ = 2,000 }units\end{array}$

Now, Merchandise purchases required is to be calculated-

  $\begin{array}{l}Requiredmerchandisepurchases\hfill \\ =EndingInventory+Expectedsalesofthemonth–BeginningInventory\hfill \end{array}$

Given, Expected sales of the month-

• January − 7,000 units
• February − 9,000 units
• March − 11,000 units

Ending inventory −

• January − 1,800 units
• February − 2,200 units
• March − 2,000 units

Beginning inventory-

− Ending inventory of the previous month shall be beginning inventory of current month.

January − 5,000 units (given)
• February − 1,800 units
• March − 2,000 units

Total requirement for the month of January, February and March-

  $\begin{array}{l}Requiredmerchandisepurchases\hfill \\ \begin{array}{l}=EndingInventory+Expectedsalesofthemonth–BeginningInventory\\ RequiredmerchandisepurchasesforJanuary=1,800units+7,000units–5,000units\\ RequiredmerchandisepurchasesforJanuary=3,800units\\ \\ RequiredmerchandisepurchasesforFebruary=2,200units+9,000units–1,800units\\ RequiredmerchandisepurchasesforFebruary=9,400units\\ \\ \begin{array}{l}RequiredmerchandisepurchasesforMarch=2,000units+11,000units–2,200units\hfill \\ RequiredmerchandisepurchasesforMarch=10,800units\hfill \end{array}\end{array}\hfill \end{array}$

Dollar Value of purchases is calculated as follows-

  $\begin{array}{l}\begin{array}{l}Dollarvalueofpurchase\text{ =}Requiredmerchandisepurchase\times Costperunit\hfill \\ DollarvalueofpurchaseforJanuary=3,800units\times \$30\hfill \end{array}\\ DollarvalueofpurchaseforJanuary=\$114,000\\ \\ \begin{array}{l}DollarvalueofpurchaseforFebruary=9,400units\times \$30\hfill \\ \begin{array}{l}DollarvalueofpurchaseforFebruary=\$282,000\\ \\ \begin{array}{l}DollarvalueofpurchaseforMarch=10,800units\times \$30\hfill \\ DollarvalueofpurchaseforMarch=\$324,000\hfill \\ \hfill \end{array}\end{array}\hfill \end{array}\end{array}$

Conclusion:

Thus, the merchandise purchase budget has been prepared for the months of January, February and March.

To determine

Concept Introduction:

Master Budget-

Master budget is a sum of all lower level budgets which are produced at different functional areas of the company. It helps in providing good coordination among all level managers. It also helps the manager in evaluating the actual performance and comparing it with the standards set by them.

Requirement 3-

To prepare:

Monthly selling expense Budget

Answer to Problem 8APSA

DIMSDALE SPORTS COMPANY
Monthly Selling Expense budgets
	January ($)	February ($)	March ($)
Sales commissions	77,000	99,000	121,000
Sales salaries	5,000	5,000	5,000
Selling expenses	82,000	104,000	126,000

Explanation of Solution

First we need to calculate Sales commissions.

Calculation of sales commission is as under-

  $\begin{array}{l}SalesCommission=20\%\times Sales\hfill \\ SalesCommissionforJanuary=20\%\times \$385,000\hfill \\ \begin{array}{l}SalesCommissionforJanuary=\$77,000\\ \\ SalesCommissionforFebruary=20\%\times \$495,000\\ SalesCommissionforFebruary=\$99,000\\ \\ \begin{array}{l}SalesCommissionforMarch=20\%\times \$605,000\hfill \\ SalesCommissionforMarch=\$121,000\hfill \end{array}\end{array}\hfill \end{array}$

Sales salary for each month-

  $\begin{array}{l}Salessalaryforeachmonth=\frac{\$60,000}{12months}\hfill \\ Salessalaryforeachmonth=\$5,000\hfill \end{array}$

Selling expense for each month is calculated as under-

  $\begin{array}{l}SellingExpense=SalesCommission+Salessalary\hfill \\ SellingExpenseforJanuary=\$77,000+\$5,000\hfill \\ \begin{array}{l}SellingExpenseforJanuary=\$82,000\\ \\ \begin{array}{l}SellingExpenseforFebruary=\$99,000+\$5,000\hfill \\ \begin{array}{l}SellingExpenseforFebruary=\$104,000\\ \\ SellingExpenseforMarch=\$121,000+\$5,000\\ SellingExpenseforMarch=\$126,000\end{array}\hfill \end{array}\end{array}\hfill \end{array}$

Conclusion:

Thus, the selling expense budget is prepared for the month of January, February and March.

To determine

Concept Introduction:

Master Budget-

Master budget is a sum of all lower level budgets which are produced at different functional areas of the company. It helps in providing good coordination among all level managers. It also helps the manager in evaluating the actual performance and comparing it with the standards set by them.

Requirement 4-

To prepare:

Monthly general and administrative expense Budget

Answer to Problem 8APSA

DIMSDALE SPORTS COMPANY
Monthly general and administrative budgets
	January	February	March
Depreciation expense	6,000	7,000	7,300
General and administrative salaries	12,000	12,000	12,000
Maintenance expense	2,000	2,000	2,000
Total general and administrative expenses	20,000	21,000	21,300

Explanation of Solution

Given:

Maintenance Expense = $2,000 per month

General and administrative salaries for each month-

  $\begin{array}{l}Generalandadministrativesalariesforeachmonth=\frac{Totalsalaryforyear}{12months}\hfill \\ Generalandadministrativesalariesforeachmonth=\frac{\$144,000}{12months}\hfill \\ Generalandadministrativesalariesforeachmonth=\$12,000\hfill \end{array}$

Depreciation expense-

Given,

Beginning balance - $540,000

Purchase of equipment-

• January -$36,000
• February-$96,000
• March-$28,800

January-

  $\begin{array}{l}EquipmentbalanceattheendofJanuary=Beginningbalance+purchases\hfill \\ EquipmentbalanceattheendofJanuary=\$540,000+\$36,000\hfill \\ EquipmentbalanceattheendofJanuary=\$576,000\hfill \end{array}$

  $\begin{array}{l}DepreciationexpenseforJanuary=\left(\frac{Equipmentvalue}{Estimatedusefullife}\right)\times \frac{1month}{12months}\hfill \\ DepreciationexpenseforJanuary=\left(\frac{\$576,000}{8years}\right)\times \frac{1month}{12months}\hfill \\ DepreciationexpenseforJanuary=\$6,000\hfill \end{array}$

February-

  $\begin{array}{l}BalanceattheendofFebruary=BalanceattheendofJanuary+Purchases\hfill \\ BalanceattheendofFebruary=\$576,000+96,000\hfill \\ BalanceattheendofFebruary=\$672,000\hfill \end{array}$

  $\begin{array}{l}DepreciationexpenseforFebruary=\left(\frac{Equipmentvalue}{Estimatedusefullife}\right)\times \frac{1month}{12months}\hfill \\ DepreciationexpenseforFebruary=\left(\frac{\$672,000}{8years}\right)\times \frac{1month}{12months}\hfill \\ DepreciationexpenseforFebruary=\$7,000\hfill \end{array}$

March-

  $\begin{array}{l}BalanceattheendofMarch=BalanceattheendofFebruary+Purchases\hfill \\ BalanceattheendofMarch=\$672,000+28,800\hfill \\ BalanceattheendofMarch=\$700,800\hfill \end{array}$

  $\begin{array}{l}DepreciationexpenseforMarch=\left(\frac{Equipmentvalue}{Estimatedusefullife}\right)\times \frac{1month}{12months}\hfill \\ DepreciationexpenseforMarch=\left(\frac{\$700,800}{8years}\right)\times \frac{1month}{12months}\hfill \\ DepreciationexpenseforMarch=\$7,300\hfill \end{array}$

Total General and administrative expenses for each month is calculated as under-

  $\begin{array}{l}\begin{array}{l}\begin{array}{l}TotalGeneralandadministrativeexpenses=Depreciation\exp ense+Generalandadministrativesalaries\\ +MaintenanceExpense\end{array}\hfill \\ TotalGeneralandadministrativeexpensesforJanuary=\$6,000+\$12,000+\$2,000\hfill \end{array}\\ TotalGeneralandadministrativeexpensesforJanuary=\$20,000\\ \\ \begin{array}{l}TotalGeneralandadministrativeexpensesforFebruary=\$7,000+\$12,000+\$2,000\hfill \\ \begin{array}{l}TotalGeneralandadministrativeexpensesforFebruary=\$21,000\\ \\ \begin{array}{l}TotalGeneralandadministrativeexpensesforMarch=\$7,300+\$12,000+\$2,000\hfill \\ TotalGeneralandadministrativeexpensesforMarch=\$21,300\hfill \end{array}\end{array}\hfill \end{array}\end{array}$

Conclusion:

Thus, the general and administrative expenses budget is prepared for the month of January, February and March.

To determine

Concept Introduction:

Master Budget-

Master budget is a sum of all lower level budgets which are produced at different functional areas of the company. It helps in providing good coordination among all level managers. It also helps the manager in evaluating the actual performance and comparing it with the standards set by them.

Requirement 5-

To prepare:

Monthly capital expenditures Budget

Answer to Problem 8APSA

DIMSDALE SPORTS COMPANY
Capital Expenditures budget
	January	February	March	Quarter
Purchase of Equipment	36,000	96,000	28,800	160,800
Purchase of Land	0	0	150,000	150,000
Total Capital expenditure	36,000	96,000	178,800	310,800

Explanation of Solution

Given-

• Purchase of Equipment in January = $36,000
• Purchase of Equipment in February = $96,000
• Purchase of Equipment in March = $28,800
• Purchase of Land in March = $150,000

  $\begin{array}{l}TotalcapitalexpenditureinMarch=PurchaseofEquipment+PurchaseofLand\hfill \\ TotalcapitalexpenditureinMarch=\$28,800+\$150,000\hfill \\ TotalcapitalexpenditureinMarch=\$178,800\hfill \end{array}$

Conclusion:

Thus, Capital expenditure budget is prepared.

To determine

Concept Introduction:

Master Budget-

Master budget is a sum of all lower level budgets which are produced at different functional areas of the company. It helps in providing good coordination among all level managers. It also helps the manager in evaluating the actual performance and comparing it with the standards set by them.

Requirement 6-

To prepare:

Monthly Cash Budget

Answer to Problem 8APSA

DIMSDALE SPORTS COMPANY
Monthly cash budgets
	January	February	March
Beginning cash balance	36,000	30,100	210,300
Cash receipts:
Cash sales	96,250	123,750	151,250
Collection from -
Beginning accounts receivable	125,000	400,000
Credit sales of January		173,250	115,500
Credit sales of February			222,750
Total cash receipts	221,250	697,000	489,500
Total cash available	257,250	727,100	699,800
Less: Cash disbursements-
Merchandise purchases
Beginning accounts payable	80,000	280,000
January accounts payable		22,800	91,200
February accounts payable			56,400
Selling expenses (Req.3)	82,000	104,000	126,000
General and administrative expenses excluding depreciation (Req.4)	14,000	14,000	14,000
Capital Expenditure (Req.5)	36,000	96,000	178,800
Interest on bank loan	150
Total cash disbursements	212,150	516,800	466,400
Surplus/ ( deficiency) of cash	45,100	210,300	233,400
Borrowing / ( Repayment)	(15,000)
Ending cash balance	30,100	210,300	233,400

Explanation of Solution

Cash sales is calculated as under-

  $\begin{array}{l}\begin{array}{l}Cashsales=25\%\times Totalsalesofthemonth\hfill \\ CashsalesforJanuary=25\%\times \$385,000\hfill \\ \begin{array}{l}CashsalesforJanuary=\$96,250\\ \end{array}\hfill \\ CashsalesforFebruary=25\%\times \$495,000\hfill \\ \begin{array}{l}CashsalesforFebruary=\$123,750\\ \end{array}\hfill \\ CashsalesforMarch=25\%\times \$605,000\hfill \end{array}\\ CashsalesforMarch=\$151,250\end{array}$

Beginning accounts receivable-

Given-

• January-$125,000
• February-$400,000

Credit Sales-

For the month of February-

  $\begin{array}{l}CreditsalereceiptinthemonthofFebruary=60\%\times JanuaryCreditsales\hfill \\ CreditsalereceiptinthemonthofFebruary=60\%\times \left[TotalJanuarysales\times 75\%\right]\hfill \\ CreditsalereceiptinthemonthofFebruary=60\%\times \left[\$385,000\times 75\%\right]\hfill \\ CreditsalereceiptinthemonthofFebruary=60\%\times \$288,750\hfill \\ CreditsalereceiptinthemonthofFebruary=\$173,250\hfill \end{array}$

For the month of March-

  $\begin{array}{l}\begin{array}{l}Creditsalereceipt=\left\{40\%\times JanuaryCreditsales\right\}+\left\{60\%\times FebruaryCreditsales\right\}\hfill \\ Creditsalereceipt=\left\{40\%\times \left[TotalJanuarysales\times 75\%\right]\right\}+\left\{60\%\times \left[TotalFebruarysales\times 75\%\right]\right\}\hfill \\ Creditsalereceipt=\left\{40\%\times \left[\$385,000\times 75\%\right]\right\}+\left\{60\%\times \left[\$495,000\times 75\%\right]\right\}\hfill \\ Creditsalereceipt=\left\{40\%\times \$288,750\right\}+\left\{60\%\times \$371,250\right\}\hfill \\ Creditsalereceipt=\$115,500+\$222,750\hfill \end{array}\\ Creditsalereceipt=\$338,250\end{array}$

Beginning accounts payable-

Given-

• January-$80,000
• February-$280,000

Calculation of accounts payable is as under-

For the month of February-

  $\begin{array}{l}\begin{array}{l}Accountspayable=20\%\times Januarypurchases\hfill \\ Accountspayable=20\%\times \$114,000\hfill \end{array}\\ Accountspayable=\$22,800\end{array}$

For the month of March-

  $\begin{array}{l}Accountspayable=\left(80\%\times Januarypurchases\right)+\left(20\%\times Februarypurchases\right)\hfill \\ Accountspayable=\left(80\%\times \$114,000\right)+\left(20\%\times \$282,000\right)\hfill \\ Accountspayable=\$91,200+\$56,400\hfill \\ Accountspayable=\$147,600\hfill \end{array}$

Total cash available is calculated as under-

  $\begin{array}{l}\begin{array}{l}Totalcashavailable=Beginningcashbalance+Totalcashreceipts\hfill \\ TotalcashavailableforJanuary=\$36,000+221,250\hfill \\ TotalcashavailableforJanuary=\$257,250\hfill \\ \hfill \\ TotalcashavailableforFebruary=\$30,100+\$697,000\hfill \\ TotalcashavailableforFebruary=\$727,100\hfill \\ \hfill \\ TotalcashavailableforMarch=\$210,300+\$489,500\hfill \end{array}\\ TotalcashavailableforMarch=\$699,800\end{array}$

Surplus of cash-

  $\begin{array}{l}\begin{array}{l}Surplusofcash=Totalcashavailable–TotalCashdisbursements\hfill \\ SurplusofcashforJanuary=\$257,250-\$212,150\hfill \\ SurplusofcashforJanuary=\$45,100\hfill \\ \hfill \\ SurplusofcashforFebruary=\$727,100-\$516,800\hfill \\ SurplusofcashforFebruary=\$210,300\hfill \\ \hfill \\ SurplusofcashforMarch=\$699,800-\$466,400\hfill \end{array}\\ SurplusofcashforMarch=\$233,400\end{array}$

  $Interestonbankloan=\$15,000\times 1\%=\$150$

Conclusion:

Thus, Cash budget is prepared.

To determine

Concept Introduction:

Master Budget-

Master budget is a sum of all lower level budgets which are produced at different functional areas of the company. It helps in providing good coordination among all level managers. It also helps the manager in evaluating the actual performance and comparing it with the standards set by them.

Requirement 7-

To prepare:

Budgeted income statement

Answer to Problem 8APSA

DIMSDALE SPORTS COMPANY
Income Statement
Particulars	Amount ($)	Amount ($)
Sales (Req.1)		1,485,000
Cost of merchandise sold		810,000
Gross Profit		675,000
Operating expenses:
Selling expenses (Req.3)	312,000
General and administrative expenses (Req.4)	62,300
Interest on bank loan	150	374,450
Income before tax		300,550
Tax @ 40%		120,220
Net operating income		180,330

Explanation of Solution

Cost of merchandise sold-

  $\begin{array}{l}Costofmerchandisesold=No.ofunits\times Costprice\hfill \\ Costofmerchandisesold=27,000\times \$30\hfill \\ Costofmerchandisesold=\$810,000\hfill \end{array}$

Gross profit is calculated as under-

  $\begin{array}{l}Grossprofit=Sales–Costofmerchandisesold\hfill \\ Grossprofit=\$1,485,000-\$810,000\hfill \\ Grossprofit=\$675,000\hfill \end{array}$

Interest Expense-

  $Interestonbankloan=\$15,000\times 1\%=\$150$

Income before tax-

  $\begin{array}{l}\begin{array}{l}Incomebeforetax=Sales-Costofgoodssold-SellingExpense\\ -Generalandadministrativeexpenses-Interestexpense\end{array}\hfill \\ Incomebeforetax=\$1,485,000-\$810,000-\$312,000-\$62,300-\$150\hfill \\ Incomebeforetax=\$300,550\hfill \end{array}$

Tax Expense-

  $\begin{array}{l}TaxExpense=Incomebeforetax\times TaxRate\hfill \\ TaxExpense=\$300,550\times 40\%\hfill \\ TaxExpense=\$120,220\hfill \end{array}$

Net Operating income is calculated as under-

  $\begin{array}{l}NetOperatingincome=Incomebeforetax-TaxExpense\hfill \\ NetOperatingincome=\$300,550-\$120,220\hfill \\ NetOperatingincome=\$180,330\hfill \end{array}$

Conclusion:

Thus, Income statement is prepared for the quarter.

To determine

Concept Introduction:

Master Budget-

Master budget is a sum of all lower level budgets which are produced at different functional areas of the company. It helps in providing good coordination among all level managers. It also helps the manager in evaluating the actual performance and comparing it with the standards set by them.

Requirement 8-

To prepare:

Budgeted Balance sheet.

Answer to Problem 8APSA

DIMSDALE SPORTS COMPANY
Balance sheet as of March 31, 2020
	Amount ($)	Amount ($)
Assets
Cash	233,400
Accounts receivable	602,250
Inventory	60,000
Total current assets		895,650
Land		150,000
Equipment gross	610,800
Accumulated depreciation	(87,800)
Equipment net		523,000
Total assets		1,568,650
Stockholder's Equity and Liabilities
Accounts payable	549,600
Tax payable	120,220
Current liabilities		669,820
Common stock		472,500
Retained earnings		426,330
Total Stockholder's Equity and Liabilities		1,568,650

Explanation of Solution

Assets

Given,

Land = $150,000 (from Requirement 5)

Cash = $233,400 (from Requirement 6)

Calculation of total current assets is as under-

  $\begin{array}{l}\begin{array}{l}Currentassets=Cash+Accountsreceivable+Inventory\hfill \\ Currentassets=\$233,400+\$602,250+\$60,000\hfill \end{array}\\ Currentassets=\$895,650\end{array}$

Accumulated Depreciation-

  $\begin{array}{l}\begin{array}{l}Accumulateddepreciation=BeginningAccumulateddepreciation+Depreciationexpenses\hfill \\ Accumulateddepreciation=\$67,500+\$20,300\hfill \end{array}\\ Accumulateddepreciation=\$87,800\end{array}$

Equipment-

  $\begin{array}{l}\begin{array}{l}Equipment=Equipmentgross-AccumulatedDepreciation\hfill \\ Equipment=\$610,800-\$87,800\hfill \end{array}\\ Equipment=\$523,000\end{array}$

Calculation of total assets is as under-

  $\begin{array}{l}\begin{array}{l}TotalAssets=TotalCurrentassets+Land+Equipment\hfill \\ TotalAssets=\$895,650+\$150,000+\$523,000\hfill \end{array}\\ TotalAssets=\$1,568,650\end{array}$

Total Stockholder's Equity and Liabilities Given,

Taxes payable = 120,220 (from requirement 7)

Common stock = $472,500

Accounts payable-$549,600

Calculation of Current liabilities is as under-

  $\begin{array}{l}Currentliabilities=Accountspayable+Taxespayable\hfill \\ Currentliabilities=\$549,600+\$120,220\hfill \\ Currentliabilities=\$669,820\hfill \end{array}$

Retained earnings-

  $\begin{array}{l}Retainedearnings=Beginningretainedearnings+NetIncome\hfill \\ Retainedearnings=\$246,000+\$180,330\hfill \\ Retainedearnings=\$426,330\hfill \end{array}$

Calculation of Total Stockholder's Equity and Liabilities is as under-

  $\begin{array}{l}\begin{array}{l}TotalStockholder\text{'}sEquityandLiabilities=Currentliabilities+Commonstock+Retainedearnings\hfill \\ TotalStockholder\text{'}sEquityandLiabilities=\$669,820+\$472,500+\$426,330\hfill \end{array}\\ TotalStockholder\text{'}sEquityandLiabilities=\$1,568,650\end{array}$

Conclusion:

Thus, Budgeted balance sheet is prepared with total of $1,568,650.