Coast Corporation 1st Quarter 2022 Master Operating Budget Coast Corporation Balance Sheet December 31, 2021 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Assets: Cash Accounts Receivable inventory Prop. Plant & Equip PP&E Accum. Depr. 155,000 38,188 35,544 450.500 (270,300) Liabilities: Accounts Payable Taxes Payable Total Liabilities 75,290 15,000 90,290 $ Stockholders' Equity: Capital Stock Retained Earnings Total Equity $ 145,000 173,641 $ 318,641 Total Assets $ 408,931 Total Liabilities & Equity $408.931 Ending Inventory Policy: 50 Total Equity 18 19 20 21 Total Assets 403.931 Total Liabilities & Equity 400,931 22 Ending Inventory Policy: Month-end inventory balance as % of next month's cost of goods sold 25% Budgeted Sales Data: December 235.000 January February March April 258,500 $ 284,350 $ 313,750 $ 325,275 Credit Policy: % of sales for cash: % of sales on credit: 35% 65% Collection Pattern for Credit Sales: Month of sale: 75% Month following sale 25% 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Accounts Payable Policy: All inventory is purchased on credit, with the following pattern of payment Payment in month of purchase 70% Payment in month following purchase: 30% Monthly budgeted expenses: Salaries $ Rent $ Insurance $ Depreciation $ Worksheet 70,000 paid in cash 4,200 paid in cash 1.300 paid in cash 3.750 Monthly budgeted expenses: Salaries Rent $ Insurance 5 Depreciation Cost of goods sold Other expenses 70,000 paid in cash 4.200 paid in cash 1,300 paid in cash 3.750 55% of revenue 10% of sales, paid in cash 39 40 41 42 43 44 45 16 47 48 59 50 1 21. 3 Coast Corporation 1st Quarter 2022 Master Operating Budget Schedule of cash collections: January February March 1st Quarter $ 258,500 $ 284,350 $ 313.750 $ 856,600 Budgeted Monthly Sales from above 5 3 7 3 Cash from Current Month Cash Sales Cash from Current Month Credit Sales Cash from Prior Month Credit Sales Total Cash collections $ $ $ $ 90,475 $ 99,523 $ 109.813 $ 299,810 168.025 $ 184,828 $ 203,938 $ 556,790 100,750 $ 168,025 $ 184,828 $ 453,603 359,250 $ 452,375 $ 498,578 $1.310.203 2. Schedule of cash disbursements for inventory purchases: E G H IT 56 57 58 59 FO Cash from Current Month Cash Sales Cash from Current Month Credit Sales Cash from Prior Month Credit Sales Total Cash collections $ $ $ $ 90,475 $ 99,523 $ 109,813 $ 299.810 168,025 $ 184,828 $ 203,938 $ 556,790 100.750 $ 168,025 $ 184,828 $ 453,603 359,250 $ 452,375 $ 498,578 $1,310,203 32. 4 Schedule of cash disbursements for inventory purchases: A. Inventory purchases budget: 5 January ? ? ? ? Budgeted cost of goods sold Plus desired ending inventory Less beginning inventory Required inventory purchases February ? ? ? ? March ? 2 2 1st Quarter ? ? 2 2 | 2 B. Schedule of cash disbursements for purchases of inventory: January February From prior month's purchases ? ? From current month's purchases ? ? Total cash for inventory ? ? March ? 2 2 1st Quarter 2 2 ? 3. Schedule of cash disbursements for Operating Expenses: January February 2 2 March 2 2 1st Quarter ? 2 Salaries Rent 2 From prior month's purchases From current month's purchases Total cash for inventory 7 2 2 2 2 2 7 2 2 Schedule of cash disbursements for Operating Expenses: January ? 2 2 2 2 Salaries Rent Insurance Other expenses Total cash for operating expenses February ? ? ? ? ? March ? 2 2 ? 7 74 75 76 77 78 79 3. 80 81 82 83 BA 85 86 87 B8 89 4. 90 91 92 93 94 95 96 97 98 1st Quarter 2 ? 2 ? 2 Cash Budget: Beginning cash balance Plus cash collections from above Less disbursements: Purchases of inventory from above Operating expenses from above Ending cash balance January 2 ? ? 2 7 ? February ? 2 ? 2 ? 2 March 2 2 ? 2 2 2 1st Quarter 2 ? ? 2 2 2 Coast Corporation 1st Quarter 2022 Master Operating Budget Coast Corporation Balance Sheet December 31, 2021 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Assets: Cash Accounts Receivable inventory Prop. Plant & Equip PP&E Accum. Depr. 155,000 38,188 35,544 450.500 (270,300) Liabilities: Accounts Payable Taxes Payable Total Liabilities 75,290 15,000 90,290 $ Stockholders' Equity: Capital Stock Retained Earnings Total Equity $ 145,000 173,641 $ 318,641 Total Assets $ 408,931 Total Liabilities & Equity $408.931 Ending Inventory Policy: 50 Total Equity 18 19 20 21 Total Assets 403.931 Total Liabilities & Equity 400,931 22 Ending Inventory Policy: Month-end inventory balance as % of next month's cost of goods sold 25% Budgeted Sales Data: December 235.000 January February March April 258,500 $ 284,350 $ 313,750 $ 325,275 Credit Policy: % of sales for cash: % of sales on credit: 35% 65% Collection Pattern for Credit Sales: Month of sale: 75% Month following sale 25% 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Accounts Payable Policy: All inventory is purchased on credit, with the following pattern of payment Payment in month of purchase 70% Payment in month following purchase: 30% Monthly budgeted expenses: Salaries $ Rent $ Insurance $ Depreciation $ Worksheet 70,000 paid in cash 4,200 paid in cash 1.300 paid in cash 3.750 Monthly budgeted expenses: Salaries Rent $ Insurance 5 Depreciation Cost of goods sold Other expenses 70,000 paid in cash 4.200 paid in cash 1,300 paid in cash 3.750 55% of revenue 10% of sales, paid in cash 39 40 41 42 43 44 45 16 47 48 59 50 1 21. 3 Coast Corporation 1st Quarter 2022 Master Operating Budget Schedule of cash collections: January February March 1st Quarter $ 258,500 $ 284,350 $ 313.750 $ 856,600 Budgeted Monthly Sales from above 5 3 7 3 Cash from Current Month Cash Sales Cash from Current Month Credit Sales Cash from Prior Month Credit Sales Total Cash collections $ $ $ $ 90,475 $ 99,523 $ 109.813 $ 299,810 168.025 $ 184,828 $ 203,938 $ 556,790 100,750 $ 168,025 $ 184,828 $ 453,603 359,250 $ 452,375 $ 498,578 $1.310.203 2. Schedule of cash disbursements for inventory purchases: E G H IT 56 57 58 59 FO Cash from Current Month Cash Sales Cash from Current Month Credit Sales Cash from Prior Month Credit Sales Total Cash collections $ $ $ $ 90,475 $ 99,523 $ 109,813 $ 299.810 168,025 $ 184,828 $ 203,938 $ 556,790 100.750 $ 168,025 $ 184,828 $ 453,603 359,250 $ 452,375 $ 498,578 $1,310,203 32. 4 Schedule of cash disbursements for inventory purchases: A. Inventory purchases budget: 5 January ? ? ? ? Budgeted cost of goods sold Plus desired ending inventory Less beginning inventory Required inventory purchases February ? ? ? ? March ? 2 2 1st Quarter ? ? 2 2 | 2 B. Schedule of cash disbursements for purchases of inventory: January February From prior month's purchases ? ? From current month's purchases ? ? Total cash for inventory ? ? March ? 2 2 1st Quarter 2 2 ? 3. Schedule of cash disbursements for Operating Expenses: January February 2 2 March 2 2 1st Quarter ? 2 Salaries Rent 2 From prior month's purchases From current month's purchases Total cash for inventory 7 2 2 2 2 2 7 2 2 Schedule of cash disbursements for Operating Expenses: January ? 2 2 2 2 Salaries Rent Insurance Other expenses Total cash for operating expenses February ? ? ? ? ? March ? 2 2 ? 7 74 75 76 77 78 79 3. 80 81 82 83 BA 85 86 87 B8 89 4. 90 91 92 93 94 95 96 97 98 1st Quarter 2 ? 2 ? 2 Cash Budget: Beginning cash balance Plus cash collections from above Less disbursements: Purchases of inventory from above Operating expenses from above Ending cash balance January 2 ? ? 2 7 ? February ? 2 ? 2 ? 2 March 2 2 ? 2 2 2 1st Quarter 2 ? ? 2 2 2