FROM THE BELOW FIGURES, I NEED TO COMPILE A BUDGETED INCOME STATEMENT USING THE CONTRIBUTION APPROACH?

a) Sales Budget
	April	May	June	Quarter
Budgeted Unit Sales	65,000	100,000	50,000	215,000
Selling Price per unit	$10	$10	$10	$10
Total Sales	$650,000	$1,000,000	$500,000	$2,150,000
b)
1b. A schedule of expected cash collections from sales, by month and in total
	April	May	June	Quarter
February sales = 26000 x $10x 10%	$26,000			$26,000
March sales = 40,000 x $10 x 70%; 40000 x $10 x 10%	$280,000	$40,000		$320,000
April sales 65000 x 10 x 20%; 70% ;10%	$130,000	$455,000	$65,000	$650,000
May sales 100,000 x 10 x 20%;70% ;		$200,000	$700,000	$900,000
June sales 50000 x $10 x 20%			$100,000	$100,000
Total Cash Sales	$436,000	$695,000	$865,000	$1,996,000
1c. A merchandise purchases budget in units and in dollars. Show the budget by month and in toal
	April	May	June	Quarter
Budgeted unit sales	65,000	100,000	50,000	215,000
Add: Desired Ending Inventory 40% x (may , june, july sales units respectively)	40,000	20,000	12,000	12,000
Total needs	105,000	120,000	62,000	227,000
Less: Beginning Inventory	26,000	40,000	20,000	26,000
Required purchases	79,000	80,000	42,000	201,000
Unit Cost	$4	$4	$4	$4
Required $ purchases	$316000	$320000	$168000	$804000
1d. A schedule of expected cash dibursements for merchandise purchases, by month in total
	April	May	June	Quarter
Accts. payable	$100,000			$100,000
April purchases	$158,000	$158,000		$316,000
May purchases		$160,000	$160,000	$320,000
June purchases			$84,000	$84,000
Total cash payments	$258,000	$318,000	$244,000	$820,000

2) Prepare Cash Budget by month and in total

Toowoomba Jewelry
Cash Budget
For the Three Months Ending June 30
	April	May	June	Quarter
Cash balance	$ 74,000	$ 50,000	$ 50,000	$ 74,000
Add collections from customers	$ 436,000	$ 695,000	$ 865,000	$ 1,996,000
Total cash available	$ 510,000	$ 745,000	$ 915,000	$ 2,070,000
Less disbursements:
Merchandise purchases	$ 258,000	$ 318,000	$ 244,000	$ 820,000
Advertising	$ 200,000	$ 200,000	$ 200,000	$ 600,000
Rent	$ 18,000	$ 18,000	$ 18,000	$ 54,000
Salaries	$ 106,000	$ 106,000	$ 106,000	$ 318,000
Commissions (4% of sales)	$ 26,000	$ 40,000	$ 20,000	$ 86,000
Utilities	$ 7,000	$ 7,000	$ 7,000	$ 21,000
Equipment purchases	$ -	$ 16,000	$ 40,000	$ 56,000
Dividends paid	$ 15,000	$ -	$ -	$ 15,000
Total disbursements	$ 630,000	$ 705,000	$ 635,000	$ 1,970,000
Excess (deficiency) of receipts over disbursements	$ (120,000)	$ 40,000	$ 280,000	$ 100,000
Financing:
Borrowings	$ 170,000	$ 10,000	$ -	$ 180,000
Repayments	$ -		$ (180,000)	$ (180,000)
Interest (($170,000 1% 3 + $10,000 1% 2)	$ -		$ (5,300)	$ (5,300)
Total financing	$ 170,000	$ 10,000	$ 185,300	$ (5,300)
Cash balance, ending	$ 50,000	$ 50,000	$ 94,700	$ 94,700