Fabulous issued common stock for $600000 on October 5 A dividend of $2600 was paid on December 15. The company borrows and repays funds in increments of $1,000 on the last day of the month. The company also pays its vendors on the last day of the month. It pays interest of 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $40000 cash cushion. Prepare a cash budget on your excel template. Check key figure below g. Cash Budget Beginning cash balance October November December Total-Qtr Issuance of stock Cash available Less payments For S&A expenses Purchase of store fixtures Pay dividend Interest expense Total budgeted payments Cash balance before borrow/repay Financing activity Borrowing (repayment) Ending cash balance Total-Qtr 44,750 910,250 1,655,000 a. Sales Budget 6 Cash sales November 247,500 302,500 550,000 December 273,350 332,750 605,000 Sales on account 275,000 Total budgeted sales Total-Qtr 44,750 577,500 b. Schedule of Cash Receipts Current cash sales Plus collections from A/R Total collections November 247,500 275,000 522,500 December 8 272,250 225,000 574,750 (Hint-these do na Total-Qtr 1,324,000 373,200 Inventory Purchases Budget Budgeted cost of goods sold Plus desired ending inventory Inventory needed Less beginning inventory Required purchases (on account) c. November December 10 145,200 96,000 132,000 453,200 145,200 434,800 532,000 1,420,000 check math vertically too d. Schedule of Cash Payments Budget for Inventory Purchases Total-Qtr November 181,280 319,200 500,480 December Payment of current month's AVP Payment for prior month's AVP Total budgeted payments 212,800 173,920 591,120 212,800 445,840 e. Selling and Administrative Expense Budget October 38,400 25,000 10,000 3,200 9,125 38,400 27,500 11,000 3,200 9,125 Total-Qtr 115,200 82,750 33,100 9,600 27,375 36,000 6,000 38,400 30,250 Salary expense Sales commissions expense Supplies expense Utilities Expense Depreciation expense on store fxtures Rent expense Miscellaneous expense Total S&A expenses 3,200 9,125 12,000 2,000 99,725 103,225 31 f. Schedule of Cash Payments for S&A Expenses (Some balances may be zero.) October Total-Qtr Salaries Sales commissions Supplies expense Utilities Depreciation on store foxtures Rent Miscellaneous Total payments for S&A expenses 25,000 11,000 3,200 52,500 33,100 6,400 27,500 10,000 3,200 12,000 2,000 62,400 12,000 2,000 97525 12,000 36,000 249.200 Balance Sheet Enter any contra-assets as negative numbers. Use a minus sign Assets Cash Accounts receivable Inventory Store fixtures Accumulated depreciation Total assets Liabilities Accounts payable Utilities payable Sales commissions payable Line of credit liability Total liabilities Equity Common stock Retained earnings Total equity Total liabilities and equity Fabulous issued common stock for $600000 on October 5 A dividend of $2600 was paid on December 15. The company borrows and repays funds in increments of $1,000 on the last day of the month. The company also pays its vendors on the last day of the month. It pays interest of 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $40000 cash cushion. Prepare a cash budget on your excel template. Check key figure below g. Cash Budget Beginning cash balance October November December Total-Qtr Issuance of stock Cash available Less payments For S&A expenses Purchase of store fixtures Pay dividend Interest expense Total budgeted payments Cash balance before borrow/repay Financing activity Borrowing (repayment) Ending cash balance Total-Qtr 44,750 910,250 1,655,000 a. Sales Budget 6 Cash sales November 247,500 302,500 550,000 December 273,350 332,750 605,000 Sales on account 275,000 Total budgeted sales Total-Qtr 44,750 577,500 b. Schedule of Cash Receipts Current cash sales Plus collections from A/R Total collections November 247,500 275,000 522,500 December 8 272,250 225,000 574,750 (Hint-these do na Total-Qtr 1,324,000 373,200 Inventory Purchases Budget Budgeted cost of goods sold Plus desired ending inventory Inventory needed Less beginning inventory Required purchases (on account) c. November December 10 145,200 96,000 132,000 453,200 145,200 434,800 532,000 1,420,000 check math vertically too d. Schedule of Cash Payments Budget for Inventory Purchases Total-Qtr November 181,280 319,200 500,480 December Payment of current month's AVP Payment for prior month's AVP Total budgeted payments 212,800 173,920 591,120 212,800 445,840 e. Selling and Administrative Expense Budget October 38,400 25,000 10,000 3,200 9,125 38,400 27,500 11,000 3,200 9,125 Total-Qtr 115,200 82,750 33,100 9,600 27,375 36,000 6,000 38,400 30,250 Salary expense Sales commissions expense Supplies expense Utilities Expense Depreciation expense on store fxtures Rent expense Miscellaneous expense Total S&A expenses 3,200 9,125 12,000 2,000 99,725 103,225 31 f. Schedule of Cash Payments for S&A Expenses (Some balances may be zero.) October Total-Qtr Salaries Sales commissions Supplies expense Utilities Depreciation on store foxtures Rent Miscellaneous Total payments for S&A expenses 25,000 11,000 3,200 52,500 33,100 6,400 27,500 10,000 3,200 12,000 2,000 62,400 12,000 2,000 97525 12,000 36,000 249.200 Balance Sheet Enter any contra-assets as negative numbers. Use a minus sign Assets Cash Accounts receivable Inventory Store fixtures Accumulated depreciation Total assets Liabilities Accounts payable Utilities payable Sales commissions payable Line of credit liability Total liabilities Equity Common stock Retained earnings Total equity Total liabilities and equity