Can someone please help me? I can't understand this thank you
AutoSave . Off) Demo problems Week 9 - Excel Search Rachel Lawrence Rego RL X File Home Insert Page Layout Formulas Data Review Help Share Comments & Cut _ AutoSum Calibri v 11 ~ A" A" de Wrap Text General X AY O Fill Paste [A Copy BIU DAY E Format Painter E Merge & Center Conditional Format as Cell Insert Delete Format Sort & Find & Analyze Sensitivity Formatting > Table ~ Styles Clear Filter ~ Select Data Clipboard Font Alignment Number Styles Cells Editing Analysis Sensitivity 014 X fix A B C D E F G H K M N O P Q R S U V W CHECK FIGURE credit, with no di month-end. An ad (2) June ending cash balance: $10,730; sale. Bad debts ha (3) Net income: $151,880 The company's m You have just been hired as a management trainee by Cravat Sales Company, a nationwide distributor of a designer's silk ties. The company has an exclusive franchise on the distribution of the ties, and sales have grown so rapidly over the last few years that it has become necessary to add new members to the management team. You have been given responsibility for all planning and budgeting. Your first assignment is to Variable: prepare a master budget for the next three months, starting April 1. You are anxious to make a favourable impression on the president and Sales comm have assembled the information below. The company desires a minimum ending cash balance each month of $10,000. The ties are sold to retailers for $8 each. Recent and Fixed: forecasted sales in units are as follows: Wages and : January (actual) 20,000 Utilities 20 February (actual) 24,000 Insurance March (actual) 28,000 Depreciation 22 April 35,000 Miscellaneo 24 May 45,000 25 June 60,000 26 All selling and ad 27 July 40,000 will be purchased 28 following quarter. August 36,000 29 30 September 32,000 31 Solution for Comprehensive Comprehensive Problem Required 1 | Required 2 | Required 3 | Required 4 | Ethics ... + Ready + 99% Type here to search O N m 7 G T 2 27'C ~ 9 6 (1)) ENG 12:40 21-07-2021AutoSave . Off) Demo problems Week 9 - Excel Search Rachel Lawrence Rego RL X File Home Insert Page Layout Formulas Data Review View Help Picture Format Share Comments & Cut A A Z AutoSum E 2D Wrap Text General Fill Paste [A Copy Format Painter BIU VF DAY E Merge & Center Conditional Format as Cell Insert Delete Format Sort & Find & Analyze Sensitivity Formatting * Table y Styles v Clear Filter ~ Select Data Clipboard Font Alignment Number Styles Cells Editing Analysis Sensitivity Picture 2 X Y fix P Q R S U V W X Z AA AB AC AD AE AF AG AH Al AJ AK AL AM The large buildup in sales before and during June is due to Father's Day. Ending inventories are supposed to equal 90% of the next month's 4 CO sales in units. The ties cost the company $5 each. 10 Purchases are paid for as follows: 50% in the month of purchase and the remaining 50% in the following month. All sales are on Page 335 11 credit, with no discount, and payable within 15 days. The company has found, however, that only 25% of a month's sales are collected by month-end. An additional 50% are collected in the following month, and the remaining 25% are collected in the second month following sale. Bad debts have been negligible. The company's monthly selling and administrative expenses are given below: Variable: Sales commissions $1 per tie O Fixed: O Wages and salaries $22,000 Utilities $14,000 24 25 Insurance $1,200 26 Depreciation $1,500 27 28 Miscellaneous $3,000 29 30 All selling and administrative expenses are paid during the month, in cash, with the exception of depreciation and insurance expired. Land 31 will be purchased during May for $25,000 cash. The company declares dividends of $12,000 each quarter, payable in the first month of the 32 following quarter. The company's balance sheet at March 31 is given below: 33 Solution for Comprehensive Comprehensive Problem Required 1 | Required 2 | Required 3 | Required 4 | Ethics ... + Ready + 98% Type here to search O G T 20 27.C ~ D C ( 1) ENG 12:42 21-07-2021AutoSave . Off) Demo problems Week 9 - Excel Search Rachel Lawrence Rego RL X File Home Insert Page Layout Formulas Data Review View Help Picture Format Share Comments Compress Pictures Picture Border Bring Forward Align Height: 14.67 cm " Remove Corrections Color Artistic Transparency Change Picture Picture Effects Alt Send Backward LE Group Background Effects Reset Picture Picture Layout Text CASelection Pane Rotate Crop Width: 21.3 cm Adjust Picture Styles 'Accessibility Arrange Size Picture 3 X fix AA AB AC AD AE AF AG AH Al AJ AK AL AM AN AO AP AQ AR AS AT AU AV AW AX Assets 9 10 Cash $ 14,000 11 Accounts receivable ($48,000 February sales; $168,000 March sales) 216,000 12 13 Inventory (31,500 units) 157,500 14 Prepaid insurance 14,400 Fixed assets, net of depreciation 172,700 Total assets $574,600 Liabilities and Shareholders' Equity O Accounts payable $ 85,750 23 Dividends payable 12,000 24 Common shares 300,000 25 26 Retained earnings 176,850 27 28 Total liabilities and shareholders' equity $574,600 29 30 The company has an agreement with a bank that allows it to borrow in increments of $1,000 at the beginning of each month, up to a total 31 loan balance of $ 140,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not 32 compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the 33 34 loan as possible (in increments of $1,000), while still retaining at least $10,000 in cash. Solution for Comprehensive Comprehensive Problem Required 1 | Required 2 |Required 3 |Required 4 |Ethics ... + 4 Ready + 98% Type here to search O m 7 G T 20 27'C ~ D ( 41) ENG 12:42 21-07-2021AutoSave . Off) Demo problems Week 9 - Excel Search Rachel Lawrence Rego RL X File Home Insert Page Layout Formulas Data Review Help Share Comments & Cut X _ AutoSum Calibri v 11 ~ A" A" de Wrap Text General AY O Fill Paste [A Copy BIU DAY E Analyze Format Painter E Merge & Center Conditional Format as Cell Insert Delete Format Sort & Find & Sensitivity Formatting Table ~ Styles Clear Filter ~ Select Data Clipboard Font Alignment Number Styles Cells Editing Analysis Sensitivity A41 X fix A B H K M N O P Q R S T U V W X 34 35 36 Required: 37 Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets: 38 39 1. 40 a. A sales budget by month and in total. 41 b. A schedule of expected cash collections from sales, by month and in total. 42 43 C. A merchandise purchases budget in units and in dollars. Show the budget by month and in total. 44 d. A schedule of expected cash disbursements for merchandise purchases, by month and in total. 45 2. A cash budget. Show the budget by month and in total. 46 47 3. A budgeted income statement for the three-month period ending June 30. Use the contribution approach. 48 4. A budgeted balance sheet as of June 30. 49 Page 336 50 51 52 53 54 55 56 57 58 59 60 Solution for Comprehensive Comprehensive Problem Required 1 | Required 2 | Required 3 |Required 4 | Ethics ... + Ready + 98% Type here to search O N G T 2 27'C ~ 9 8 () ENG 12:43 21-07-2021
