8 Actual and Budgeted Unit Sales: 9 April 1,500 10 May 1,000 11 June 1,600 12 July 1,400 13 August 1,500 14 September 1,200 15 16 Balance Sheet, May 31, 19X5 17 Cash $8,000 18 Accounts receivable 107,800 19 Merchandise inventory 52,800 20 Fixed assets (net) 130,000 21 -------- 22 Total assets $298,600 23 ======== 24 Accounts payable (merchandise) $74,800 25 Owner's equity 223,800 26 -------- 27 Total liabilities & equity $298,600 28 ======== 29 30 Average selling price $98 31 Average purchase cost per unit $55 32 Desired ending inventory 33 (% of next month's unit sales) 60% 34 Collections from customers: 35 Collected in month of sale 20% 36 Collected in month after sale 60% 37 Collected two months after sale 20% 38 Projected cash payments: 39 Variable expenses 30% of sales 40 Fixed expenses (per month) $10,000 41 Depreciation per month $1,000 42 43 - - - - 44 Answer Section: 45 Sales Budget 46 ------------ 47 June July August 48 ------ ------ ------ 49 Units FORMULA1 0 0 50 Dollars FORMULA2 0 0 51 52 Unit Purchases Budget 53 --------------------- 54 June July August 55 ------ ------ ------ 56 Desired ending inventory FORMULA3 0 0 57 Current month's unit sales FORMULA4 0 0 58 -------- -------- -------- 59 Total units needed FORMULA5 0 0 60 Beginning inventory FORMULA6 0 0 61 -------- -------- -------- 62 Purchases (units) FORMULA7 0 0 63 ======== ======== ======== 64 Purchases (dollars) FORMULA8 $0 $0 65 ======== ======== ======== 66 67 Cash Budget 68 ----------- 69 June July August 70 ------ ------ ------ 71 Cash balance, beginning $8,000 $42,760 $142,720 72 Cash receipts: 73 Collections from customers: 74 From April sales 29,400 75 From May sales 58,800 19,600 76 From June sales 31,360 94,080 31,360 77 From July sales 27,440 82,320 78 From August sales 29,400 79 -------- -------- -------- 80 Total cash available $127,560 $183,880 $285,800 81 Cash disbursements: 82 Merchandise $74,800 FORMULA8 $0 83 Variable expenses 0 41,160 44,100 84 Fixed expenses 10,000 0 10,000 85 Interest paid 0 0 0 86 -------- -------- -------- 87 Total disbursements $84,800 $41,160 $54,100 88 -------- -------- -------- 89 Cash balance before financing $42,760 $142,720 $231,700 90 Less: Desired ending balance 8,000 8,000 8,000 91 -------- -------- -------- 92 Excess (deficit) of cash over needs $34,760 $134,720 $223,700 93 -------- -------- -------- 94 Financing 95 Borrowing $0 $0 $0 96 Repayment 0 0 0 97 -------- -------- -------- 98 Total effects of financing $0 $0 $0 99 -------- -------- -------- 100 Cash balance, ending $42,760 $142,720 $231,700 101 ======== ======== ======== 102 103 Forecasted Income Statement 104 For Quarter Ended August 31, 19X5 105 --------------------------------- 106 Sales FORMULA16 107 Cost of goods sold FORMULA17 108 -------- 109 Gross profit FORMULA18 110 -------- 111 Expenses: 112 Variable expenses FORMULA19 113 Fixed expenses FORMULA20 114 Depreciation expense FORMULA21 115 Interest expense FORMULA22 116 -------- 117 Total expenses $0 118 -------- 119 Net income $0 120 ======== 121 122 Forecasted Balance Sheet 123 August 31, 19X5 124 ------------------------ 125 Assets: 126 Cash FORMULA23 127 Accounts receivable FORMULA24 128 Merchandise inventory FORMULA25 129 Fixed assets (net) FORMULA26 130 -------- 131 Total assets $0 132 ======== 133 Liabilities & equity: 134 Accounts payable FORMULA27 135 Loans payable 0 136 Owner's equity FORMULA28 137 -------- 138 Total liabilities & equity $0 139 ======== 140 - - - -