Copy Paste BIU- Format Painter A.EE Merge & Center - $. % Insert Delete * Conditional Format Cell Formatting as Table Styles Styles Clipboard . Font Alignment Number Cel A1 A B D E F G 2. 3 Henron, Inc. Sales Budget For the 6 mos ending June 30, 2018 7 Dec 2017 Jan 2018 Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2018 6 mos total 5 6 Nov 2017 8 Budged unit sales 9 Selling price per unit 10 Total Sales Revenue 11 12 Cash Sales % 60% 13 Credit Sales % 40% 14 15 Cash Sales 16 Credit Sales 17 Total Sales Revenue 18 19 20 Current month AVR Collections 20% 21 1 month prior A/R Collections 70% 22 2 months prior A/R Collections 10% 23 24 25 26 27 28 29 Current month cash sales 30 Collectinns of credit les mare this month Budget Henron, Inc. Cash Collections For the 6 mos ending June 30, 2018 Feb 2018 Jan 2018 Mar 2018 Apr 2018 May 2018 6 mos total Jun 2018 Ready i 2 33 O Type here to search g File Page Layout Formulas Data Review View Arial - 10 -A A Wrap Text General X Cut Copy Paste Format Painter Clipboard BIU- A F# Merge & Center - $. % Insert Delete Form 4. Conditional Format Cell Formatting as Table Styles Styles Font Alignment Number Cells AZ G H D E F Cash Collections For the 6 mos ending June 30, 2018 Jan 2018 Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2018 6 mos total of next month unit sales B 25 26 27 28 29 Current month cash sales 30 Collections of credit sales made this month 31 Collections of credit sales made last month 32 Collections of credit sales made 2 months ago 33 Total cash collections 34 35 Desired ending inventory % 30% 36 37 38 39 40 41 Nov 2017 42 Budged unit sales 43 Add desired ending inventory 44 Total needs 45 Less Beginning Inventory 46 Required Purchases 47 48 Cost per unit 49 Total purchases cost 50 51 % Paid in Month of Purchase 52 % Paid in Month after Purchase 70% 53 Henron, Inc. Purchase Budget For the 6 mos ending June 30, 2018 Dec 2017 Jan 2018 Feb 2018 Mar 2018 Apr 2018 May 2013 Jun 2018 6 mos total $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 600 S 6.00 30% Home In OH Budget 3 Ready O i Type here to search 34 Arial -10 Wrap Text General Copy - Paste Format Painter BIU A E Es Merge & Center - S - % 49 Conditional Format Cell Insert De Formatting as Table Styles Clipboard Font Alignment Number Styles A2 f B D E F G H 53 54 Heron, Inc. 55 Schedule of Budgeted Cash Disbursements for Merchandise Purchases 56 For the 6 mos ending June 30, 2018 57 58 Jan 2018 Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2018 6 mos tot 59 Payment for current month purchases 60 Payment for prior month purchases 61 Cash disbursements for merch purchases 62 63 64 Fixed Operating expenses: Variable Operating Expenses 65 Salaries and Wages Expense $ 17.000 Sales Commissions, % of sales revenue 7% 66 Rent Expense 6,000 67 Supplies Expense 2000 68 Other Overhead Expenses 5.000 69 Depreciation Expense 2.500 70 71 Heron, Inc. 72 Operating Expense Budget 73 For the 6 mos ending June 30, 2018 74 75 Jan 2018 Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2018 6 mos total 76 Salaries and Wages Expense 77 Sales Commissions 78 Rent Expense 79 Supplies Expense 80 Other Overhead Expenses 81 Depreciation Expense 82 Total operating expenses Budget Ready Type here to search ORI 3 WIADI Gena be Copy Paste Format Painter Clipboard BIU- A.EE Merge & Center - $ - % . Insert Delete F 4 Conditional Format Formatting as Table Styles Styles Font Alignment Number Cell A2 G H D E Heron, Inc Operating Expense Budget For the 6 mos ending June 30, 2018 Jan 2018 Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2018 6 mos tot A B 71 72 73 74 75 76 Salaries and Wages Expense 77 Sales Commissions 78 Rent Expense 79 Supplies Expense 80 Other Overhead Expenses 81 Depreciation Expense 82 Total operating expenses 83 Subtract non-cash expenses: 84 Depreciation 85 Cash disbursements for operating expenses 86 87 88 89 90 91 92 Cash balance, beginning 93 Add collections from customers 94 Total cash available 95 Less disbursements 96 Cash disbursements for merch purchases 97 Cash disbursements for operating expenses 98 Total cash disbursements 99 Cash balance before financing 100 Financing Budget Ready Heron, Inc. Cash Budget For the 6 mos ending June 30, 2018 Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2016 Jan 2018 15,000 6 mos total $ O Type here to search 23 9 WL CIRC 24 Insert Delete Fe $ - % Merge & Center Cell Conditional Format Formatting as Table - Styles Styles Cells Number Alignment D G Heron, Inc. Cash Budget For the 6 mos ending June 30, 2018 Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2018 6 mos total Jan 2018 15,000 ALI Copy R Format Painter BA Clipboard Font A4 f Sales Budget B 86 87 88 89 90 91 92 Cash balance, beginning 93 Add collections from customers 94 Total cash available 95 Less disbursements: 96 Cash disbursements for merch purchases 97 Cash disbursements for operating expenses 98 Total cash disbursements 99 Cash balance before financing 100 Financing 101 Borrowing (repayments) - note payable 102 Cash balance, ending 103 104 105 106 107 100 109 110 Sales, net 111 Cost of Goods Sold 112 Gross margin 113 Total operating expenses 114 Net Income Heron, Inc. Budgeted Income Statement For the 6 mos ending June 30, 2018 Feb 2018 Mar 2018 Jan 2018 Apr 2018 Jun 2010 May 2018 6 mos total NBudget Read Type here to search O II E 3 Eg Merge Center $ - % Insert Delete Format z! Conditional Format Cell Formatting as Table Styles Styles Alignment Number Cells G H K D Budgeted Income Statement For the 6 mos ending June 30, 2018 Jan 2018 Feb 2018 Mar 2018 A 2018 May 2018 Jun 2018 6 mos total Format Painter .. A Clipboard Font A4 Sales Budget A B 106 107 108 109 110 Sales, nel 111 Cost of Goods Sold 112 Gross margin 113 Total operating expenses 114 Net Income 115 116 Heron, Inc. 117 Budgeted Statement of Retained Earnings 118 For the 6 mos ending June 30, 2018 119 120 Retained Earnings, beginning $ 121 Add Net Income 122 Retained Earnings, ending 123 124 Heron, Inc. 125 Budgeted Balance Sheet 126 As of June 30, 2018 127 128 Assets 129 Current Assets 130 Cash 131 Accounts Receivable 132 Office Supplies 2.000 133 Merchandise Inventory Total Current Assets 135 Plant and Finant Budget Ready 370,660 134 O Type here to search BH E G 370.660 A4 fr Sales Budget B 116 Heron, Inc. 117 Budgeted Statement of Retained Earnings 118 For the 6 mos ending June 30, 2018 119 120 Retained Earnings, beginning S 121 Add Net Income 122 Retained Earnings, ending 123 124 Heron, Inc. 125 Budgeted Balance Sheet 126 As of June 30, 2018 127 128 Assets: 129 Current Assets: 130 Cash 131 Accounts Receivable 132 Office Supplies 2,000 Merchandise Inventory 134 Total Current Assets 135 Plant and Equipment: 136 Buildings and Equipment 1,050,000 137 Accumulated Depreciation (520,000) 138 Total Plant and Equipment 139 Total assets 140 141 Liabilities 142 Accounts Payable 143 144 Equity Common Stock 200 000 K Budget Ready Type here to search 133 o 54 Alignment Number E G H 132 Clipboard Font A4 f Sales Budget R 122 Retained Earnings, ending 123 124 Heron, Inc. 125 Budgeted Balance Sheet 126 As of June 30, 2018 127 128 Assets 129 Current Assets 130 Cash 131 Accounts Receivable Office Supplies 2,000 133 Merchandise Inventory 134 Total Current Assets 135 Plant and Equipment: 136 Buildings and Equipment 1,050,000 137 Accumulated Depreciation (520,000) 138 Total Plant and Equipment 139 Total assets 140 141 Liabilities 142 Accounts Payable 143 144 Equity 145 Common Stock 200,000 146 Retained Earnings Total Equity 148 Total liabilities and equity 149 150 151 14 Budget 147 Read Type here to search 54 O BE E neck ngures are also located under comprenensive Problem 2 in Blackboaru Apr 18 INFORMATION FOR HENRON, INC. BUDGET PROJECT 1. Heron, Inc. is a company that re-sells one product, a lawn chair. A contractor makes the product exclusively for Heron, so Heron has no manufacturing costs. Henron sells each chair for $10 per unit, but plans to raise the sales price to $11.00 per unit beginning May 1, 2018 2. The estimated sales (in units) are as follows: Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 May 18 Jun 18 Jul 18 12,000 13,000 9,000 10,000 13,000 15,000 18,000 18,000 17,000 3. They expect that 60% of any month's sales are for cash, and the remaining 40% are on credit or the credit sales, they expect to collect 20% in the month of the sale, 70% in the following month, and 10% in the month after that. 4. The firm's policy regarding inventory is to stock (le have in ending inventory) 30% of the estimated sales for the next month. 5. Each lawn chair costs Henron $6. They plan to pay for 30% of the inventory purchases in the month of purchase, and pay the remaining 70% the following month (i.e all of the previous month's Accounts Payable are paid off by the end of any month.) Page 1 of 2 6. Monthly operating expenses consist of the following (any cash expenses are paid as incurred): Salaries and Wages Expense Sales Commissions Rent Fxnense $17,000 7% of sales revenue SIGLO Type here to search G D 1 6. Monthly operating expenses consist of the following (any cash expenses are paid as incurred) Salaries and Wages Expense Sales Commissions Rent Expense Supplies Expense Other Overhead Expense Depreciation Expense $17,000 7% of sales revenue $6,000 $2,000 $5,000 $2,500 7. Henron must maintain a minimum cash balance of $30,000. Borrowing can make up shortfalls For simplicity, assume that the bank will only lend (and accept repayments) in $1,000 increments. Ignore interest on the loan in your calculations, but only borrow what you need, and pay off any loans as soon as possible 8. Cash on hand as of December 31, 2017 is expected to be $15,000. In addition, there will be no notes payable (loan balance) as of this date 9. See below the other Balance Sheet accounts with their balances as of the beginning of the year. Buildings and Equipment Accumulated Deprecation Common Stock Retained Earnings $1,050,000 $ 520,000 $ 200,000 $ 370,660 Note: You must add current year depreciation expense to accumulated depreciation 10. Henron maintains office supplies of $2.000 at the end of each month 11. Accounts receivable consists of the credit sales that have not been received Accounts payable consists of inventory purchases that have not yet been paid. Type here to search