HAAS COMPANY Part a S 250,000 October sales Sales in cash Sales in accounts receivable Expected sales growth per month 40% 60% 8% Part b Accounts receivable collected in month following sales 100% Part c Cost of goods sold as percentage of sales 60% Ending inventory - percent of next 10% month's cost of goods sold December estimated ending inventory S 12,000 Part d Accounts payable paid in month 70% of purchase Accounts payable paid in month following purchase 30% Part e Salary expense (fixed) Sales commissions (percent of sales) Supplies expense (percent of sales) Utilities (fixed) Depreciation on store equipment (fixed) Rent (fixed) Miscellaneous (fixed) S 18,000 5% 2% S 1,400 4,000 4,800 1,200 Cost of store fixtures Salvage value - store fixtures Useful life (years) - store fixtures 164,000 20,000 Part g Borrowing increments Monthly interest rate Cash cushion S 1,000 196 $ 12,000 File Home Insert Page Layout Formulas Data Review View X, Cut 9AA Copy Format Painter Paste Clipboard Font Alignment C1 | | Your Name A B HAAS COMPANY - MASTER BUDGET Pg 283 (create formulas where applicable) 1S9 7 a. Sales Budget 8 Cash sales 9 Sales on account 10 Total budgeted sales OctoberNovember December "Pro Forma" 74,960 174,960 12 13 b. Schedule of Cash Receipts 14 Current cash sales 15 Plus collections from A/R 16 Total collections 17 18 19 c. Inventory Purchases Budget 20 (Generally the most difficult budget) October November 21 Budgeted cost of goods sold 22 Plus desired ending inventory 23 Inventory needed 24 Less beginning inventory 25 Required purchases (on account) 26 27 28 d. Schedule of Cash Payments Budget for Inventory Purchases 29 30 31 Payment of current month's A/P 32 Payment for prior month's A/P 33 Total budgeted payments 34 35 36 e. Selling and Administrative Expense Budget 37 38 39 Salary expense 40 Sales commissions 41) Supplies expense 42 Utilities 43 Depreciation on store fixtures 44 Rent 45 Miscellaneous 46 Total S&A expenses 47 48 49 f. Schedule of CASH Payments for S8A Expenses 50 51 52 Salary expense 53 Prior month sales commissions 54 Supplies expense 55 Prior month utilities 56 Depreciation on store fixtures (non-cash) 57 Rent 58 Miscellaneous October November December Pro Forma S 278,640 Correct Pro Forma Data December S 169,464 Correct Pro Forma October November December S 167,614 Correct Pro Forma October November December Data 4,000 S 49,812 Correct Pro Forma October November December Dat 59 Total payments for S&A expenses S 43,300 SPO7-23A Given PO7-23A Ready O Type here to search 2 g. Cash Budget Pro Forma Data October November December 4 Beginning cash balance 5 Add cash receipts 6 Cash available 7 Less payments 8 For inventory purchases 116,340 For S&A expenses Purchase of store fixtures Interest expense 2 Total budgeted payments 3 Payment minus receipts 4 Surplus (shortage) 5 Financing activity 6 Borrowing (repayment) 7 Ending cash balance S 12,000 S 12,000 0 h. HAAS COMPANY Pro Forma Income Statement For the Quarter Ended December 31, 20xx 1) Be sure to complete all of the above components (items a-g) before preparing the financial stmts below (items h &i]. 4 Sales revenue 5 Cost of goods sold 6 Gross margin 7 S&A expenses 8 Operating income 9 Interest expense 0 Net income Item has been de 2) Refer to our Bee Gee Case Study work (see dlass website) for insight or stop by during any office hours. 179,628 S 175,678 Correct HAAS COMPANY Pro Forma Balance Sheet December 31, 20xx 4 6 7 Assets 8 Cash 9 Accounts receivable 00 Inventory 01 Store Fixtures 2Less: Accumulated depreciation 03"Book value of Store Fixtures 4 Total assets 05 06 Liabilities 7Accounts payable 8 Utilities payable 9 Sales commissions payable 10 Line of credit liability 11 Equity 12 Retained earnings 13 Total liabilities and equity (Must equal cell F113:)
