..1 T-Mobile LTE 10:57 PM @ 44% Close ACTG1C_BENS...& NOOR. Budget FIFO Calculation Bitii liitliiliile Habiliti Ali 1 A ..1 T-Mobile LTE 10:57 PM @ 44% Close ACTG1C_BENS...& NOOR.XLS CW Budget FIFO Calculation ifiiiiii HTML THA Issues and Problem Areas: Summarize the key weaknesses in the proposed budget, given the established pricing, inventory, receivable, payable, dividend and cash management policies. 1 Close ACTG1C_BENSON_BUDGET PROJECT, SADIQ & NOOR.XLS Budget FIFO Calculation Name: Anisa Sadiq & Heena Noor Napoleon, Inc. Sales Budget For the 6 mos ending June 16 6 Noy 15 11,250 mos total 89,000 Budged unit sales Selling price per unit Total Sales Cash Sales Credit Sales % Dec '15 11,600 101 116,000 Jan '18 10.000 101 100.000 Feb '16 11,400 101 114,000 Mar 16 12,000 102 120,000 Apr 16 15,600 101 1 56,000 May '16 18,000 11.25 202,500 June 16 22.000 11.25 247.500 112,500 940,000 Cash Sales Credit Sales Total Sales 33.750 78.750 112.500 34,800 81,200 116,000 30 000 70.000 100.000 34,200 79,800 114,000 36,000 84.000 120.000 46,800 109.200 156,000 60,750 141,750 202,500 74 250 173.250 247.500 282,000 658,000 940,000 30% Current month AR Collections 1 month prior MR Collections 2 months prior AR Collections Uncollectible Napoleon, Inc. Cash Collections For the 6 mos ending Ane '16 Jan 16 Apr '16 6 mos total Current month cash Sales Current month AR Collections 1 month prior AR Collections 2 months prior AR Collections 21,000 40,000 Feb '16 34,200 23,940 35.000 12,992 Mar 16 36.000 25.200 39.900 11.200 32,760 42.000 12,768 May '16 60.750 42,525 54 600 13.440 June 16 74,250 51,975 70.875 17.472 197,400 282.975 80,472 12.000 Close ACTG1C_BENSON_BUDGET PROJECT, SADIQ & NOOR.XLS Budget FIFO Calculation Napoleon, Inc. Cash Collections For the 6 mos ending June 16 30,000 Mar 16 35.000 25 200 46,800 32,760 Current month cash Sales Current month AR Collections 1 month prior A/R Collections 2 months prior AVR Collections Total cash collections Feb '16 34,200 23.040 35.000 12,992 106,132 39.900 40,600 12.600 104,200 74.250 51,975 70.875 17,472 214 572 282,000 197,400 282.975 80 472 842 847 11.200 12,768 134,328 13.440 171.315 112.300 Bad Debt Expense 3,248 2.800 20.118 Desired ending inventory % Napoleon, Inc. Purchase Budget For the 6 mos ending June 16 A 10.000 4560 Budged unit sales Add desired ending inventory Total needs Less Beginning Inventory Required Purchases Dec '15 11,600 4.000 15,600 4,640 10.9601 Feb 16 1 11,400 4 Rool 16.200 45601 Mar 16 12.000 6.2401 18.240 4.800l 13.440 16 15.000 7.2001 22.800 6240 16.500 May '16 18,000 8.800 20,000 7.2001 19.000 June 16 6 22.000 72001 29.200 8.800 20.400 mos total 89,000 38.800 127,800 92.200 56.4481 69,552 89.964 Cost per unit Purchases % Paid in Month of Purchase % Paid in Mother Purchase Close ACTG1C_BENSON_BUDGET PROJECT, SADIQ & NOOR.XLS Napoleon, Inc. Schedule of Budgeted Cash Disbursements for Merchandise Purchases For the 6 mos ending June 16 6 Cash purchases 1 month prior A/P Collections Cash disbursements for merchandise purch. Jan 16 16,896 26,304 Feb '16 18,624 25,344 43,968 Mar '16 $22.579.20 27.936 50.5152 Apr '16 $27.820.80 33,868.8 61,689.6 May '16 $34,574.40 41.7312 76 305 6 June 16 35,985.6 5 1,861.6 8 7 8472 mos total 156,480 207,045,6 363,5256 Variable Operating Expenses: 3,000 Sales Commissions, % of Revenue 8,000 Other Variable Cash Expenses, % of Revenue Fixed Operating expenses: Salaries and Wages Rent Supplies Expense Other - Overhead Other - Depreciation 24,000 24.000 Napoleon, Inc. Operating Expense Budget For the 6 mos ending June 16 3,000 3.000 3000 Salaries and Wages Sales Commissions 3,000 10.920 7.000 6.000 9,360 2.000 2.000 7080 8,000 6,840 2,000 24 000 24,000 3.248 79,068 24,000 Other Variable Cash Expenses Supplies Expense Other - Overhead Other - Depreciation Bad Debt Expense Total operating expenses Depreciation and noncash items 3.000 8.400 8.000 7200 2.000 24.000 24.000 2.800 79.400 24.000 24.000 14.175 8.000 12.150 2.000 24000 24,000 3,3601 90,685 24,000 3.000 17,325 8.000 14,850 2.000 24,000 24,000 4,368 97,543 24,000 18,000 65,800 48.000 56.400 12,000 144.000 144,000 20.118 508,318 24,000 24,000 31501 77,150 24,000 24,000 3,1921 84,472 24,000 Close ACTG1C_BENSON_BUDGET PROJECT, SADIQ & NOOR.XLS Napoleon, Inc. Operating Expense Budget For the 6 mos ending June 16 Apr '16 6 mos total June ' 16 3.000 17,325 8,000 14,850 8,000 65,800 48,000 56.400 2.000 12.000 Salaries and Wages Sales Commissions Rent Other Variable Cash Expenses Supplies Expense Other - Overhead Other. Depreciation Bad Debt Expense Total operating expenses Depreciation and noncash items Bad Debt Expense Cash disbursements for operating expenses 2.000 24,000 24,000 Feb '16 3,000 7,980 8,000 6,840 2.000 24,000 24,000 3.248 79,068 24,000 3.248 51,820 Mar 16 3.000 8.400 8.000 7 200 2.000 24 000 24.000 2.800 79.400 24.000 2.800 52.600 10.920 8,000 9.360 2.000 24,000 24,000 3.1921 84.472 24 000 3.192 57.2801 May '16 3.000 14,175 8,000 12.150 2.000 24,000 24,000 3.3601 90,685 24.000 3.30 63,325 24,000 24,000 77.150 24,000 3.150 50,000 97,543 24,000 144,000 144,000 20.118 508,318 24,000 20.118 464 200 69,175 Equipment payment - January Equipment payment - February Dividends - March Minimum Monthly Cash Budget 50,000 30.000 12.000 Napoleon, Inc. Cash Budget For the 6 mos ending June 16 Apr '16 Cash balance, beginning Add collections from customers Total cash available Less disbursements: Feb '18 15.000 106,132 121.152 Mar '18 15.344 112 300 1 277644 May '16 15,887 171, 315 187 202 104,200 110. 200 1 34,328 1 49,857 June 16 6 15,572 214,572|| 230,144 842,847 935,179 29 EEE sen MET 99 Close ACTG1C_BENSON_BUDGET PROJECT, SADIQ & NOOR.XLS to Minimum Monthly Cash Budget 15,000 Napoleon, Inc Cash Budget For the 6 mos ending June 16 6 mos total 92,332 Jan 16 15,000 104.2001 119.200 Feb '16 1 15,000 106.132 121,132 Mar 16 15.344 112,300 112.300 127.644 Apr '16 15,529 134,328| 149,857 May '16 15,887 171,315 187 202 June 16 15,572 214,572| 230,144 214,672 642.847 935,179 8 43. 200 50.000 50.000 43,968 51,820 30,000 50.5152 52.600 61,6896 57.280 76,305. 6 6 3.325 7,847.2 69.175 Cash balance, beginning Add collections from customers Total cash available Less disbursements: Cash disbursements for merchandise purch. Cash disbursements for operating expenses Equipment purchases Dividends Total cash disbursements Excess of receipts over disbursements Financing: Borrowing-note Repayments-note Total financing Cash balance, ending 363.525.6 344,200 80.000 12,000 799,725.6 135,453.4 143.2001 24,000 1 12.000 115.115 21 12,5288 125.788 4,656 118.969, 6 30,8874 39.63070 47.571. 4 1 57,022.2 7 3.121.8 39,000 20,000 3.000 62,000 62.000 39,000 20,000 15,344 3.000 1 5.528 81 15.000 - 15,000 15.88741 32,000 -32.000 15.5714 15,000 - 15.000 8, 121.8 5 135,453.4 Napoleon, Inc. Budgeted Income Statement For the 6 mos ending June 16 Total June 16 247,500 Jan 16 100.000 40.0001 60.000 77.1501 Cost of goods sold: Gross margin Total operating expenses Feb '16 1 114,000 45.600 68.400 79,068 Mar 16 120.000 49440 70.560 79.4001 Apr '16 156,000 65,5201 90.480 14.4721 May '16 202.500 77.868 124.632 0.685 07.020 150,480 97.5431 940,000 375,448 564,552 508,318 Close ACTG1C_BENSON_BUDGET PROJECT, SADIQ & NOOR.XLS Napoleon, Inc. Budgeted Income Statement For the 6 mos ending June 16 Apr '16 Sales.net Cost of goods sold: Gross margin Total operating expenses Net Income Jan 16 100,000 40.0001 60,000 77,150 17,150 Feb '16 114,000 45,600 68,400 79,068 10.668 Mar 16 120.000 49 440 70.560 79.4001 8.8401 65,520 90.480 84,472| 6,008 May '16 202.500 77.865 1 24.632 90.685 33.947 June '16 247,500 97,020 150.480 97 543|| 52.9371 940,000 375.448 584,552 508,318 5234 Napoleon, Inc. Budgeted Balance Sheet 6/30/16 58,1213 Current Assets Cash Accounts receivable Supplies Merchandise Inventory Plant and Equipment: Buildings and Equipment Accumulated Depreciation Total assets 149,625 2.000 31.752 670 475 379,525 621023.8 62.000 Liabilities and Equity Accounts payable Capital stock Retained earnings Total liabilities and equity 200,000 522 811 430.811 ..1 T-Mobile LTE 10:57 PM @ 44% Close ACTG1C_BENS...& NOOR. Budget FIFO Calculation Bitii liitliiliile Habiliti Ali 1 A ..1 T-Mobile LTE 10:57 PM @ 44% Close ACTG1C_BENS...& NOOR.XLS CW Budget FIFO Calculation ifiiiiii HTML THA Issues and Problem Areas: Summarize the key weaknesses in the proposed budget, given the established pricing, inventory, receivable, payable, dividend and cash management policies. 1 Close ACTG1C_BENSON_BUDGET PROJECT, SADIQ & NOOR.XLS Budget FIFO Calculation Name: Anisa Sadiq & Heena Noor Napoleon, Inc. Sales Budget For the 6 mos ending June 16 6 Noy 15 11,250 mos total 89,000 Budged unit sales Selling price per unit Total Sales Cash Sales Credit Sales % Dec '15 11,600 101 116,000 Jan '18 10.000 101 100.000 Feb '16 11,400 101 114,000 Mar 16 12,000 102 120,000 Apr 16 15,600 101 1 56,000 May '16 18,000 11.25 202,500 June 16 22.000 11.25 247.500 112,500 940,000 Cash Sales Credit Sales Total Sales 33.750 78.750 112.500 34,800 81,200 116,000 30 000 70.000 100.000 34,200 79,800 114,000 36,000 84.000 120.000 46,800 109.200 156,000 60,750 141,750 202,500 74 250 173.250 247.500 282,000 658,000 940,000 30% Current month AR Collections 1 month prior MR Collections 2 months prior AR Collections Uncollectible Napoleon, Inc. Cash Collections For the 6 mos ending Ane '16 Jan 16 Apr '16 6 mos total Current month cash Sales Current month AR Collections 1 month prior AR Collections 2 months prior AR Collections 21,000 40,000 Feb '16 34,200 23,940 35.000 12,992 Mar 16 36.000 25.200 39.900 11.200 32,760 42.000 12,768 May '16 60.750 42,525 54 600 13.440 June 16 74,250 51,975 70.875 17.472 197,400 282.975 80,472 12.000 Close ACTG1C_BENSON_BUDGET PROJECT, SADIQ & NOOR.XLS Budget FIFO Calculation Napoleon, Inc. Cash Collections For the 6 mos ending June 16 30,000 Mar 16 35.000 25 200 46,800 32,760 Current month cash Sales Current month AR Collections 1 month prior A/R Collections 2 months prior AVR Collections Total cash collections Feb '16 34,200 23.040 35.000 12,992 106,132 39.900 40,600 12.600 104,200 74.250 51,975 70.875 17,472 214 572 282,000 197,400 282.975 80 472 842 847 11.200 12,768 134,328 13.440 171.315 112.300 Bad Debt Expense 3,248 2.800 20.118 Desired ending inventory % Napoleon, Inc. Purchase Budget For the 6 mos ending June 16 A 10.000 4560 Budged unit sales Add desired ending inventory Total needs Less Beginning Inventory Required Purchases Dec '15 11,600 4.000 15,600 4,640 10.9601 Feb 16 1 11,400 4 Rool 16.200 45601 Mar 16 12.000 6.2401 18.240 4.800l 13.440 16 15.000 7.2001 22.800 6240 16.500 May '16 18,000 8.800 20,000 7.2001 19.000 June 16 6 22.000 72001 29.200 8.800 20.400 mos total 89,000 38.800 127,800 92.200 56.4481 69,552 89.964 Cost per unit Purchases % Paid in Month of Purchase % Paid in Mother Purchase Close ACTG1C_BENSON_BUDGET PROJECT, SADIQ & NOOR.XLS Napoleon, Inc. Schedule of Budgeted Cash Disbursements for Merchandise Purchases For the 6 mos ending June 16 6 Cash purchases 1 month prior A/P Collections Cash disbursements for merchandise purch. Jan 16 16,896 26,304 Feb '16 18,624 25,344 43,968 Mar '16 $22.579.20 27.936 50.5152 Apr '16 $27.820.80 33,868.8 61,689.6 May '16 $34,574.40 41.7312 76 305 6 June 16 35,985.6 5 1,861.6 8 7 8472 mos total 156,480 207,045,6 363,5256 Variable Operating Expenses: 3,000 Sales Commissions, % of Revenue 8,000 Other Variable Cash Expenses, % of Revenue Fixed Operating expenses: Salaries and Wages Rent Supplies Expense Other - Overhead Other - Depreciation 24,000 24.000 Napoleon, Inc. Operating Expense Budget For the 6 mos ending June 16 3,000 3.000 3000 Salaries and Wages Sales Commissions 3,000 10.920 7.000 6.000 9,360 2.000 2.000 7080 8,000 6,840 2,000 24 000 24,000 3.248 79,068 24,000 Other Variable Cash Expenses Supplies Expense Other - Overhead Other - Depreciation Bad Debt Expense Total operating expenses Depreciation and noncash items 3.000 8.400 8.000 7200 2.000 24.000 24.000 2.800 79.400 24.000 24.000 14.175 8.000 12.150 2.000 24000 24,000 3,3601 90,685 24,000 3.000 17,325 8.000 14,850 2.000 24,000 24,000 4,368 97,543 24,000 18,000 65,800 48.000 56.400 12,000 144.000 144,000 20.118 508,318 24,000 24,000 31501 77,150 24,000 24,000 3,1921 84,472 24,000 Close ACTG1C_BENSON_BUDGET PROJECT, SADIQ & NOOR.XLS Napoleon, Inc. Operating Expense Budget For the 6 mos ending June 16 Apr '16 6 mos total June ' 16 3.000 17,325 8,000 14,850 8,000 65,800 48,000 56.400 2.000 12.000 Salaries and Wages Sales Commissions Rent Other Variable Cash Expenses Supplies Expense Other - Overhead Other. Depreciation Bad Debt Expense Total operating expenses Depreciation and noncash items Bad Debt Expense Cash disbursements for operating expenses 2.000 24,000 24,000 Feb '16 3,000 7,980 8,000 6,840 2.000 24,000 24,000 3.248 79,068 24,000 3.248 51,820 Mar 16 3.000 8.400 8.000 7 200 2.000 24 000 24.000 2.800 79.400 24.000 2.800 52.600 10.920 8,000 9.360 2.000 24,000 24,000 3.1921 84.472 24 000 3.192 57.2801 May '16 3.000 14,175 8,000 12.150 2.000 24,000 24,000 3.3601 90,685 24.000 3.30 63,325 24,000 24,000 77.150 24,000 3.150 50,000 97,543 24,000 144,000 144,000 20.118 508,318 24,000 20.118 464 200 69,175 Equipment payment - January Equipment payment - February Dividends - March Minimum Monthly Cash Budget 50,000 30.000 12.000 Napoleon, Inc. Cash Budget For the 6 mos ending June 16 Apr '16 Cash balance, beginning Add collections from customers Total cash available Less disbursements: Feb '18 15.000 106,132 121.152 Mar '18 15.344 112 300 1 277644 May '16 15,887 171, 315 187 202 104,200 110. 200 1 34,328 1 49,857 June 16 6 15,572 214,572|| 230,144 842,847 935,179 29 EEE sen MET 99 Close ACTG1C_BENSON_BUDGET PROJECT, SADIQ & NOOR.XLS to Minimum Monthly Cash Budget 15,000 Napoleon, Inc Cash Budget For the 6 mos ending June 16 6 mos total 92,332 Jan 16 15,000 104.2001 119.200 Feb '16 1 15,000 106.132 121,132 Mar 16 15.344 112,300 112.300 127.644 Apr '16 15,529 134,328| 149,857 May '16 15,887 171,315 187 202 June 16 15,572 214,572| 230,144 214,672 642.847 935,179 8 43. 200 50.000 50.000 43,968 51,820 30,000 50.5152 52.600 61,6896 57.280 76,305. 6 6 3.325 7,847.2 69.175 Cash balance, beginning Add collections from customers Total cash available Less disbursements: Cash disbursements for merchandise purch. Cash disbursements for operating expenses Equipment purchases Dividends Total cash disbursements Excess of receipts over disbursements Financing: Borrowing-note Repayments-note Total financing Cash balance, ending 363.525.6 344,200 80.000 12,000 799,725.6 135,453.4 143.2001 24,000 1 12.000 115.115 21 12,5288 125.788 4,656 118.969, 6 30,8874 39.63070 47.571. 4 1 57,022.2 7 3.121.8 39,000 20,000 3.000 62,000 62.000 39,000 20,000 15,344 3.000 1 5.528 81 15.000 - 15,000 15.88741 32,000 -32.000 15.5714 15,000 - 15.000 8, 121.8 5 135,453.4 Napoleon, Inc. Budgeted Income Statement For the 6 mos ending June 16 Total June 16 247,500 Jan 16 100.000 40.0001 60.000 77.1501 Cost of goods sold: Gross margin Total operating expenses Feb '16 1 114,000 45.600 68.400 79,068 Mar 16 120.000 49440 70.560 79.4001 Apr '16 156,000 65,5201 90.480 14.4721 May '16 202.500 77.868 124.632 0.685 07.020 150,480 97.5431 940,000 375,448 564,552 508,318 Close ACTG1C_BENSON_BUDGET PROJECT, SADIQ & NOOR.XLS Napoleon, Inc. Budgeted Income Statement For the 6 mos ending June 16 Apr '16 Sales.net Cost of goods sold: Gross margin Total operating expenses Net Income Jan 16 100,000 40.0001 60,000 77,150 17,150 Feb '16 114,000 45,600 68,400 79,068 10.668 Mar 16 120.000 49 440 70.560 79.4001 8.8401 65,520 90.480 84,472| 6,008 May '16 202.500 77.865 1 24.632 90.685 33.947 June '16 247,500 97,020 150.480 97 543|| 52.9371 940,000 375.448 584,552 508,318 5234 Napoleon, Inc. Budgeted Balance Sheet 6/30/16 58,1213 Current Assets Cash Accounts receivable Supplies Merchandise Inventory Plant and Equipment: Buildings and Equipment Accumulated Depreciation Total assets 149,625 2.000 31.752 670 475 379,525 621023.8 62.000 Liabilities and Equity Accounts payable Capital stock Retained earnings Total liabilities and equity 200,000 522 811 430.811