Developing a Master Budget for a Merchandising Organization Peyton Department Store prepares budgets quarterly, The following information is available for use in planning the second quarter budgets for 2016, PEYTON DEPARTMENT STORE Balance Show March 31, 2010 Assets abilities and Stockholders' Equity $25,000 Mounts receh.able 25.000 Dudencs pais 17.000 101 Hwyle 1,000 Preparan 2001 Slekha pily -13,000 Flores 25 000 Tralles and 154.000 Equity 94303 Actual and forecasted sales for selected months in 2010 are as follows: Month Sales Revenue 330.000 February 50.000 ... Varth 40050 SRO 1.000 ung 70.000 Lily 311133 NU Monthly operating expenses are as follows: Windows 125,000 Depreciador 100 Udltes 1,000 Ben 1,170 Cash divicerids of $17,000 ere declared during the third month of each querter and are ped during the first months of the folosing quarter. Operating experises, except insurance, rent, and depreciation are peidas incurred. Rerit is paid during the following months. The prepaid insurance is for five more months. Cost of goods sold is equal to 50 percent of sales. Ending irreritories ere sufficient for 20 percent of the riext month's sales. Purchases during any given forth are paid in full during the following month. All sales are on account, with 50 percent collected during the month of sale, 40 percent during the next month, and 10 percent during the month thereafter. Money can be borrowed and repaid in multiples of $1,000 cl an interest rate of 12 percent per year. The corrpany desires a minimurit cash balance of $2,000 on the list of each month. At the time the principal is repeid. interest is paid on the portion of principal that is repaic. All borrowing is at the beginning of the month, and all repayment is at the end of the month. Money is never repaid at the end of the month it is borrowed. (al Prepare a purchases budget for each month of the second quarter ending June 30, 2010. Peyton Department Store Monthly Purchase Budget Quarter Ending june 29, 2010 April May June Total CS (b) Prepare a cash receipts schedule for each month of the second quarter ending June 30, 2010. Do not include borrowings. Peyton Department Store Schedule of Monthly Cash Receipts Quarter Ending June 30, 2010 April May June Total Total cash receipts $ 0 $ 0$ 0 $ 0 (c) Prepare a cash disbursements schedule for each month of the second quarter ending June 30, 2010. Do not include repayments of borrowings. Peyton Department Store Schedule of Monthly Cash Disbursements Quarter Ending June 30, 2010 April May June Total Total cash disbursements $ 0 $ 0 $ 0 $ 0 0 (d) Prepare a cash budget for each month of the second quarter ending June 30, 2010. Include budgeted borrowings and repayments. Only use negative signs, if needed, for: excess receipts over disbursements, balance before borrowings and cash balances (beginning and ending). Peyton Department Store Monthly Cash Budget Quarter Ending June 30, 2010 April May June Total Cash balance, beginning $ 0 $ 0$ 0 $ Receipts Disbursements Excess receipts over disb. Balance before borrowings Borrowings Loan repayments 0 Cash balance, ending 0$ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 (e) Prepare an income statement for each month of the second quarter ending June 30, 2010. Only use negative signs to show net losses in income. Peyton Department Store Budgeted Monthly Income Statements Quarter Ending June 30, 2010 April May June Total Sales $ 0 $ 0 $ 0$ 0 Cost of sales 0 0 0 0 Gross profit 0 0 0 0 Operating expenses: Wages and salaries 0 0 0 0 Depreciation 0 0 0 0 Utilities 0 0 0 0 Rent 0 0 0 0 Insurance 0 0 0 0 Interest 0 0 0 0 Total expenses 0 0 0 0 Net income $ 0 $ 0 $ 0 $ 0 0 (f) Prepare a budgeted balance sheet as of June 30, 2010. Peyton Department Store Budgeted Balance Sheet June 30, 2010 Assets Liabilities and Equity Cash O Merchandise payable $ Accounts receivable 0 Dividend payable Inventory 0 Rent payable Prepaid insurance 0 Loans payable Fixtures 0 Interest payable Total assets 0 Stockholders' equity Total liab. & equity $ 0 0 0 0 $ 0 0 Developing a Master Budget for a Merchandising Organization Peyton Department Store prepares budgets quarterly, The following information is available for use in planning the second quarter budgets for 2016, PEYTON DEPARTMENT STORE Balance Show March 31, 2010 Assets abilities and Stockholders' Equity $25,000 Mounts receh.able 25.000 Dudencs pais 17.000 101 Hwyle 1,000 Preparan 2001 Slekha pily -13,000 Flores 25 000 Tralles and 154.000 Equity 94303 Actual and forecasted sales for selected months in 2010 are as follows: Month Sales Revenue 330.000 February 50.000 ... Varth 40050 SRO 1.000 ung 70.000 Lily 311133 NU Monthly operating expenses are as follows: Windows 125,000 Depreciador 100 Udltes 1,000 Ben 1,170 Cash divicerids of $17,000 ere declared during the third month of each querter and are ped during the first months of the folosing quarter. Operating experises, except insurance, rent, and depreciation are peidas incurred. Rerit is paid during the following months. The prepaid insurance is for five more months. Cost of goods sold is equal to 50 percent of sales. Ending irreritories ere sufficient for 20 percent of the riext month's sales. Purchases during any given forth are paid in full during the following month. All sales are on account, with 50 percent collected during the month of sale, 40 percent during the next month, and 10 percent during the month thereafter. Money can be borrowed and repaid in multiples of $1,000 cl an interest rate of 12 percent per year. The corrpany desires a minimurit cash balance of $2,000 on the list of each month. At the time the principal is repeid. interest is paid on the portion of principal that is repaic. All borrowing is at the beginning of the month, and all repayment is at the end of the month. Money is never repaid at the end of the month it is borrowed. (al Prepare a purchases budget for each month of the second quarter ending June 30, 2010. Peyton Department Store Monthly Purchase Budget Quarter Ending june 29, 2010 April May June Total CS (b) Prepare a cash receipts schedule for each month of the second quarter ending June 30, 2010. Do not include borrowings. Peyton Department Store Schedule of Monthly Cash Receipts Quarter Ending June 30, 2010 April May June Total Total cash receipts $ 0 $ 0$ 0 $ 0 (c) Prepare a cash disbursements schedule for each month of the second quarter ending June 30, 2010. Do not include repayments of borrowings. Peyton Department Store Schedule of Monthly Cash Disbursements Quarter Ending June 30, 2010 April May June Total Total cash disbursements $ 0 $ 0 $ 0 $ 0 0 (d) Prepare a cash budget for each month of the second quarter ending June 30, 2010. Include budgeted borrowings and repayments. Only use negative signs, if needed, for: excess receipts over disbursements, balance before borrowings and cash balances (beginning and ending). Peyton Department Store Monthly Cash Budget Quarter Ending June 30, 2010 April May June Total Cash balance, beginning $ 0 $ 0$ 0 $ Receipts Disbursements Excess receipts over disb. Balance before borrowings Borrowings Loan repayments 0 Cash balance, ending 0$ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 (e) Prepare an income statement for each month of the second quarter ending June 30, 2010. Only use negative signs to show net losses in income. Peyton Department Store Budgeted Monthly Income Statements Quarter Ending June 30, 2010 April May June Total Sales $ 0 $ 0 $ 0$ 0 Cost of sales 0 0 0 0 Gross profit 0 0 0 0 Operating expenses: Wages and salaries 0 0 0 0 Depreciation 0 0 0 0 Utilities 0 0 0 0 Rent 0 0 0 0 Insurance 0 0 0 0 Interest 0 0 0 0 Total expenses 0 0 0 0 Net income $ 0 $ 0 $ 0 $ 0 0 (f) Prepare a budgeted balance sheet as of June 30, 2010. Peyton Department Store Budgeted Balance Sheet June 30, 2010 Assets Liabilities and Equity Cash O Merchandise payable $ Accounts receivable 0 Dividend payable Inventory 0 Rent payable Prepaid insurance 0 Loans payable Fixtures 0 Interest payable Total assets 0 Stockholders' equity Total liab. & equity $ 0 0 0 0 $ 0 0