Create a cash budget, budgetted income statement and budgetted balance sheet from the following info :

cash budget:

PLANNED CASH TRANSACTIONS and CASH BUDGET

For the Month Ending,

Jan 31, 2017

Feb 28, 2017

Mar 31, 2017

CASH IN

48% This Month's Sales

52% of Last Month's Sales

Total Cash Receipts

CASH OUT

75% Last Month's Purchases

25% This Month's Purchases

Commissions

Advertising

Selling & Admin.

Insurance

Interest

Dividends

Income Tax

Total Cash Disbursements

CASH BUDGET

Beginning Balance of Cash

Cash Receipts

Cash Available

Cash Disbursements

Ending Cash Balance

Budgeted income statement :

BUDGETED INCOME STATEMENTS

For the Month Ending,

Jan 31, 2017

Feb 28,2017

Mar 31, 2017

Sales

Cost of Sales

Gross Margin

Other Operating Expenses

Commission Expense

Advertising Expense

Insurance Expense

Selling & Admin. Expense

Depreciation Expense

Total Other Operating Expenses

Operating Income

Other Income (Expense)

Interest Expense

Income Before Income Tax

Income Tax Expense

Net Income

Budgetted Balance sheet:

BUDGETED BALANCE SHEETS
ASSETS
			Dec 31, 2016		Jan 31, 2017		Feb 28,2017		Mar 31, 2017
Current Assets
	Cash		$108,200
	Accounts Receivable		104,000
	Inventory		104,160
	Prepaid Insurance		350
Total Current Assets			316,710
Property Plant and Equipment
	Office Equipment		276,000
	Accumulated Depreciation		(55,200)
Total Property Plant and Equipment			220,800
Total Assets			$537,510
LIABILITIES AND SHAREHOLDERS EQUITY
LIABILITIES
Current Liabilities
	Accounts Payable - Purchases		103,350
	Sales Commission Payable		5,000
	Selling and Admin Payable		6,000
	Advertising Payable		2,000
	Interest Payable		1,313
	Dividends Payable		-
	Income Taxes Payable		15,530
Total Current Liabilities			133,193
Long Term Debt			175,000
Total Liabilities			308,193
SHAREHOLDERS' EQUITY
	Common Stock		140,000
	Retained Earnings		89,318
Total Shareholders' Equity			229,318
Total Liabilities and Shareholders Equity			$537,510

Use this info:

PLANNING DATA FOR 2017
All Sales are on Credit
Collections of Accounts Receivable:
Month of Service	48.00%
Month following Service	52.00%
Actual December 2016 Sales	$200,000
Expected Sales in Dollars
January	$240,000
February	$195,000
March	$175,000
April	$210,000
Cost of Goods Sold as a percentage of selling price.	62.00%
Planned ending inventory as a percentage of next month's required inventory.	70.00%
Purchases are are all on credit.
Purchases paid in current month	25.00%
Purchases paid in next month	75.00%
Actual Purchases made in December 2016	$141,360
Sales commission as a percent of sales	2.50%
Sales commission are paid one month after the month incurred.
Advertising expenses have a fixed and variable portion:
Fixed portion	$4,400
The fixed portion of the advertising is paid in the current month.
Variable portion as a percentage of sales	1.00%
The variable portion is paid one month after the month incurred.
Insurance policy:
Months of insurance coverage paid for	12
The policy period is from March 1 to February 28 each year
The premium to be paid on March 1, 2017 is	$2,100
The premium will be charged to prepaid insurance
Selling and Administrative expenses have a fixed and variable portion:
Fixed portion is paid in the month incurred	$26,000
Variable portion as a percentage of sales	3.00%
S&A expenses are paid one month after the month incurred
Depreciation expense per month	$4,600
The annual interest rate on the long term debt is	4.50%
Interest is incurred on the principal balance outstanding each month.
Interest is paid on a quarterly basis. Interest for November to January will be paid February 1.
No principal payments are scheduled to be made on the long-term debt until August of 2017
Income Tax rate	30%
Accrued taxes are paid on the 15th of January, April, July and October
The Company's Board of Directors plans to declare a dividend on February 20	$11,000
It will be paid on March 15.

BALANCE SHEET
December 31, 2016
ASSETS
Current Assets
Cash	$108,200
Accounts Receivable	104,000
Inventory	104,160
Prepaid Insurance	350
Total Current Assets	316,710
Property Plant and Equipment
Office Equipment	276,000
Accumulated Depreciation	(55,200)
Total Property Plant and Equipment	220,800
Total Assets	$537,510
LIABILITIES AND SHAREHOLDERS EQUITY
LIABILITIES
Current Liabilities
Accounts Payable - Purchases	$106,020
Sales Commission Payable	5,000
Selling and Admin Payable	6,000
Advertising Payable	2,000
Interest Payable	1,313
Dividends Payable	-
Income Taxes Payable	15,530
Total Current Liabilities	135,863
Long Term Debt	175,000
Total Liabilities	310,863
SHAREHOLDERS' EQUITY
Common Stock	140,000
Retained Earnings	86,647
Total Shareholders' Equity	226,647
Total Liabilities and Shareholders Equity	$537,510