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case study

Crie Presse fut getting fchellules Malang View Help Omary AN . 1 Normal No Spleading 1 Instruction: Solve the case study ex eo and forward me your final reel sleet for marking. Where ever possible use formulas and link your spreadsheets. You can se independent sents en el for each requirement and the link the sheets where it is possible You can solve this case study independently or in groups. If you decide to see it in please forward me the information about your group studentsames & IDs). If you decide to solve it independently provide your hame and student ID with your submission via email directly to me by DUE DATE DECEMBER 10 Master Budget with Supporting Schedules Knockotts Unlimited, a nationwide distributor of low-cost imitation designer Declares, has an exclusive franchise on the distribution of the necklaces, and sales have growns rapidly over the past few years that it has become necessary to add new members to the management team. To date, the company's budgeting practices have been inferior, and at times the company has experienced a cash shortage. You have been given responsibility for all planning and budgeting. Your first assignment is to prepare a master budget for the next three months, starting April 1. You are eager to make a favorable impression on the president and have assembled the information below. The necklaces are sold to retailers for $10 each. Recent and forecast sales in units are as follows: 20,000 June 50,000 January (actual February (actual) March (actual) 26,000 40.000 July 30,000 August 28.000 September 25.000 April 65,000 100.000 May W dorp Aanboy abot Aalbot Aalbot A 1 No Spa Heading Heading Normal Paragraph 26.000 hil 30.000 February ( ) March (1) Al 40.XX 28.000 6300 Set 25 X May 100.000 The large buildup in sales before and during May is due to Mother's Day. Endling inventories should be equal to 40% of the next month's sales in units. The necklaces cost the company $4 each. Purchases are paid for as follows: go in the month of purchase and the remaining 50 in the following month. All sales are on credit, with no discount, and payable within 15 days. The company has found, however, that only 20% of a month's sales are collected by month-end. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible. The company's monthly selling and administrative expenses are given below. hp M Hevien View Grammarty Saatch A Ad 20 bobo AaBbc tcc AaB No Spa Heading leading 2 E. Paraph The company's monthly selling and administrative expenses are given below Vanuale Sines commissions 1% of sales Fosed Advertising $200,000 18.000 Rent Wages and salaries Utilities 106,000 7.000 Instance 3,000 Deprecat 14,000 All selling and administrative expenses are paid during the month, in cash, with the Pigs of depreciation and insurance Insurance is paid on an annual basis, in November of each year. The company plans to purchase S16,000 in new equipment during May and $40,000 in new equipment during June; both purchases will be paid in cash. The company declares dividends of $15,000 each quarter, payable in the first month of the following quarter. The company's balance sheet at March 3 is given below W halbcd AalbCabe AaBbc Alber T Normal 1 No Sp... Heading! Heading les month of the following quarter. The company's balance sheet at March 31 is given below: Assets Cash 574,000 Accounts receivable ($26,000 February sales; $320,000 March sales) 346,000 Inventory 104.000 21.000 Prepaid insurance Fixed assets, net of depreciation Total assets 950.000 $1,495,000 hp wurde Cuti-Preparator Budget with supporting Schedules The 10th Ming Vir Help A AR - I Normal Aalbo Aalbo AaBb Aalbo A T No Spec. Heading! Hewling? Paragraph Liabilities and Shareholders Equity Accounts payable Dividends payable Common shares $ 100,000 15,000 Retained earnings 800,000 580 000 $1.495,000 Total liabilities and shareholders' equity The company wants a minimum ending cash balance each month of $50,000 All borrowing is done at the beginning of the month, with any repayments made at the end of the month. The interest rate on these loans is 1% per month and must be paid at the end of each month based on the outstanding loan balance for that month. Required Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets A sales budget by month and in total b A schedule of expected cash collections from sale by month and in tatal. - A merchandise purchases budget in units and in dollars. Show the budget by month and in total chutes leth PC Review VIEW Help Plech ABC ABCD AaBbc AaBbc T Normal No Spac Heading1 Heading 2 Paragraph Septes The company wants a minimum ending cash balance each month of $5,000. All borrowing is done at the beginning of the month, with any repayments made at the end of the month. The interest rate on these loans is 1% per month and must be paid at the end of each month based on the outstanding loan balance for that month. Required Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets 1 a. A sales budget by month and in total. b. A schedule of expected cash collections from sales, by month and in total C A merchandise purchases budget in units and in dollars. Show the budget by month and in total. d. A schedule of expected cash disbursements for merchandise purchases, by month and in total 2. A cash budzet. Show the budget by month and in total. 3. A budgeted income statement for the three-month period ending June 3o. Use the variable costing approach 4. A budgeted balance sheet as of June 30