Carefully read the financial and operational data of JKL Corporation provided below and use them to prepare the budget for:

Sales receipts for the quarter

Purchases for the quarter

Disbursements on purchases for the quarter

Disbursements of administrative and selling expenses for the quarter

Financial and operational data of JKL Corporation

JKL Corporation is engaged in the trading business and is designing its master budget for the next operating quarter of April to June 20xx. The data collected and necessary to work with such a budget is the following:

A. Certain data from the Balance Sheet as of March 31, 20xx:

	Dr.	Cr.
Cash	$20,000
Accounts receivable	$64,000
inventory	$15,400
Building and equipment (net of depreciation)	$225,000
Account payable		$23,400
Long-term debts		$90,000
Common shares-capital		$150,000
Retained earnings		$61,000
Totals	$324,400	$324,400

B. The expected (projected) and actual sales for several months of 20xx are:

March (real)	$80,000
April	$77,500
May	$72,100
June	$81,300
July	$53,100

C. Other important information:

1- Monthly sales are 20% in cash and 80% on credit. Credit sales from the previous month are collected in full in the following month (so what is in accounts receivable at the end of March is 80% of March sales).

2- The gross profit margin that the corporation generates on its sales is 42%.

3- Each month's ending inventory is equal to 25% of the next month's budgeted cost of sales.

4- 40% of monthly merchandise purchases are paid in the month of purchase and the remainder in the month following the purchase.

5- The expected monthly expenses are: salaries, $11,900; advertising, $6,800 per month and remaining expenses (except depreciation) represent 9% of sales. Assume that these expenses are paid every month (nothing is owed at the end of the month).

6- The depreciation expense is $10,000 for the quarter and includes the portion that corresponds to the assets acquired during the period.

7- Equipment was acquired in cash: $23,500 in April and $18,000 in May 20xx.

8- Management wishes to maintain a minimum cash balance at the end of each month of $8,000.

9- When the company needs money, it can borrow from a local bank in increments of $1,000 at the beginning of each month up to a loan limit of $20,000. The interest rate that the bank charges on these loans is 1% per month and the interest is paid the next month (we assume that it is not compound interest and that each loan is made at the end of the month). The company paid dividends of $7,200 in June.

D.Prepare the cash budget for the quarter ending in June. Use the following table as a model:

	april	may	june	total
Beginning cash balance
Cash collections
Available cash
Less disbursements:
Shopping
Administrative and sales
Purchase of equipment
Dividends
Total disbursements
Excess (deficiency) of cash
Financing;
loan
Loan payments
Interest
Financing
Effective final balance

E.Develop the following projected financial statements:

1- Pro forma balance sheet as of June 30, 20xx.

2- Proforma income and expense statement for the quarter ended June 30, 20xx.

3- Proforma cash flow statement for the quarter ended June 30, 20xx.

Then, complete the following financial analysis rate table. Shows the calculation to obtain each rate.

Financial rates (ratios)	Junio 20xx (1 punto)	Clculo (2 puntos)
Current rario
Acid-test ratio
accounts receivable turn-over
average collection period
inventory turn-over
average sales period
Debt/Assets
debt-equity ratio
timesinterest earned ratio
gross margin percentage
Net Margin
ROI: return on investment