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Bravo Company is a bookstore that prepares its master budget on a quarterly basis. The following data has been assembled to assist in preparation of
Bravo Company is a bookstore that prepares its master budget on a quarterly basis. The following data has been assembled to assist in preparation of the master budget for the first quarter: As of December the end of the prior quarter the company's general ledger showed the following account balances: Debit Credit Cash Accounts Receivable Inventory Building & Equipment Accumulated Depreciation Accounts Payable Capital shares Retained Earnings Totals $ $ Actual sales for December and budgeted sales for the next four months are as follows; December actual $ January February March April Sales are for cash and on credit. All payments on credit sales are collected in the month of sale and in the month following the sale. The accounts receivable at December st are a result of December credit sales. The company's gross margin is of sales. Monthly expenses are budgeted as follows: salaries and wages $ per month advertising $ per month shipping costs are of sales depreciation is $ per month other expenses are of sales f At the end of each month, inventory is to be on hand equal to of the following month's sales needs, stated at cost g of a month's inventory purchases is paid for in the month of purchase; the remaining is paid for in the following month. h During February, the company will purchase a new copy machine for $ cash. During March, other equipment will be purchased for cash at a cost of $ i During January, the company will declare and pay $ in cash dividends. j The company must maintain a minimum cash balance of $ An open line of credit is available at a local bank for any borrowing that may be needed during the quarter. All borrowing is done at the beginning of a month and all repayments are made at the end of a month. Borrowing and repayments of principal must be in multiples of $ Interest is paid only at the time of repayment of principal. The annual interest rate is Figure out interest on whole months, example, etc. Required: In Excel, use the data provided in this question to complete the following statements and schedules for the first quarter. Make sure you have columns of numbers January, February, March and then a total for the Quarter. Also ensure you have the proper title with the appropriate lines at the top of the following; Sales budget Schedule of expected cash collections. Inventory purchases budget Schedule of cash disbursements for purchases Schedule of cash disbursements for operating expenses Cash budget Income Statement this can be in total and individual month information is not required Balance Sheet this will be the March st balance so only one column of numbers required.
Bravo Company is a bookstore that prepares its master budget on a quarterly basis. The following data has been assembled to assist in preparation of the master budget for the first quarter:
As of December the end of the prior quarter the company's general ledger showed the following account balances:
Debit Credit
Cash
Accounts Receivable
Inventory
Building & Equipment
Accumulated Depreciation
Accounts Payable
Capital shares
Retained Earnings
Totals $ $
Actual sales for December and budgeted sales for the next four months are as follows;
December actual $
January
February
March
April
Sales are for cash and on credit. All payments on credit sales are collected in the month of sale and in the month following the sale. The accounts receivable at December st are a result of December credit sales.
The company's gross margin is of sales.
Monthly expenses are budgeted as follows:
salaries and wages $ per month
advertising $ per month
shipping costs are of sales
depreciation is $ per month
other expenses are of sales
f At the end of each month, inventory is to be on hand equal to of the following month's sales needs, stated at cost
g of a month's inventory purchases is paid for in the month of purchase; the remaining is paid for in the following month.
h During February, the company will purchase a new copy machine for $ cash. During March, other equipment will be purchased for cash at a cost of $
i During January, the company will declare and pay $ in cash dividends.
j The company must maintain a minimum cash balance of $ An open line of credit is available at a local bank for any borrowing that may be needed during the quarter. All borrowing is done at the beginning of a month and all repayments are made at the end of a month. Borrowing and repayments of principal must be in multiples of $ Interest is paid only at the time of repayment of principal. The annual interest rate is Figure out interest on whole months, example, etc.
Required:
In Excel, use the data provided in this question to complete the following statements and schedules for the first quarter. Make sure you have columns of numbers January, February, March and then a total for the Quarter. Also ensure you have the proper title with the appropriate lines at the top of the following;
Sales budget
Schedule of expected cash collections.
Inventory purchases budget
Schedule of cash disbursements for purchases
Schedule of cash disbursements for operating expenses
Cash budget
Income Statement this can be in total and individual month information is not required
Balance Sheet this will be the March st balance so only one column of numbers required.
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