1. Prepare a budget for this year for the Administrative Department at Tom's Toyota Company based on the following information:

2. Big Bob's Discount Appliances expects sales of $5,000, $5,000, and $10,000 during April, May, and June (big sale in June). To build business, Big
Bob lets all customers buy on credit, and all do so. In the past, 50% of Big Bob's sales have been collected during the month of sale, 40% are collected the following month, and 10% the month after that. If this trend continues, what will be Big Bob's total cash collections in the month of June?
3. Little Louie's expects to have $100 in cash on hand at the beginning of June, and the company's target cash balance is $100. Net cash flow for June is minus $300. Assuming that Little Louie's borrows to meet short-term cash needs and pays back as soon as surplus cash is available, what will be the company's ending cash balance after financing at the end of June?
4. Ma & Pa Kettle's Chili Company has begun selling a new chili recipe and they want you to help them with next year's budgeted financial statements.
Using the worksheet below, complete Ma & Pa's forecast and answers the questions which follow.

Assumptions:
To begin with, Ma & Pa are sure sales will grow 50% next year. Assume that is true. Then assume that COGS, Current Assets, and Current Liabilities all vary directly with Sales (that means if sales grows a certain percentage, then the account in question will grow by that same percentage). Assume that fixed expenses will remain unchanged and that $1,000 worth of new Fixed Assets will be obtained next year. Lastly, the current dividend policy will be continued next year.
Ma & Pa Kettle Chili Company, Inc.
Financial Forecast

If this number is positive it means Ma & Pa need additional external funding to finance their projected asset growth. If this number is negative it means Ma & Pa have programmed too much financing for the amount of assets theyproject.

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Last Year Forecasting Assumption Budget for this Year Salaries Stationary Telephone Electricity Office Rent Depreciation $60,000 $900 $2,500 2% increase 1% decrease 3% increase 1.200 2.5% increase S10.000 2% increase $4,000 no change Total: S78,600 Estimated This year for next vear Sales COGS Gross Profit Fixed Expenses Before-Tax Profit Tax @ 33.3333% Net Profit Dividends Current Assets Net Fixed Assets Total Assets Current Liabilities S17,000 Long-tem debt Common Stock Retained Earmings 13.000 Total Liabs & Eg S40.000 Amount need to balance the balance sheet total assets minus projected (Projected total liabilities & equity*) $10,000 4000 6,000 3.000 3,000 1.000 S2,000 SO S25,000 3.000 7,000