Excel - Business Budget (25pts) The objective of this exercise is to test whether you understand and can construct an operating budget. It also gives each student exposure to using excel. Ultimately, you will be required to answer a series of questions related to the master budget, but the first step is to complete the budget accurately to get the questions correct. The following numbers are "check figures. Gross margin: $39,600 Total assets: $19,300 Ending retained earnings balance: $5,507 If you have completed the cash budget correctly then you will get these results in your operating budget which will allow you to answer each question correctly. When making calculations always round up (ie. 33 x 7% = 2.31, round up to 3.00). You may also assume that there are 30 days in each month of the first quarter. ACCT 2301: Business Budget Project Bobcat Printing makes custom t-shirts and other promotional products for student organizations and businesses. It is beginning its first year of operations and needs to plan for its first quarter of operations. They would like to maximize their profits, and understand that accurate budgeting can help achieve that goal. The budgets will be prepared based on the following information a. Sales are budgeted at $20,000 for Month 1, $25,000 for Month 2, and $27,000 for Month 3. All sales will be done on account. Company does not expect to have any cash sales. b. Sales are collected 60% in the month of the sale, and 40% in the month following the sale. c. Cost of Goods Sold is budgeted at 45% of Sales d. Monthly selling, general, and administrative expenses are as follows: donations are 10% of sales: advertising is 3% of sales; miscellaneous is 1% of sales and rent is $5,000 per month. All SG&A expenses are paid in the month they are incurred. e. Since all of the orders are custom made, no inventory is kepton hand at the end of the month. 1. Inventory purchases are paid in full in the month following the purchase. 9. Bobcat Printing is planning to purchase a building in Month 3 for $6,000 in cash. h. They would like to maintain a minimum cashbalance of $2,500 at the endofeach month. The company has an agreementwithalocal bank that allows themtoborrow, with a totalline of credit of $20,000. The interest rate on these loans is 1% per month(12% annual). They would as far as able repay the loanonthelast day ofthe month when ithasenough cashto pay the full balance and maintain an adequate ending cash balance The owner makes a draw of $3,000 every month (Note: sole proprietors and partnerships take owner's draws, while stockholders receive dividends). Based upon the information provided, complete the operating budgets provided in the excel template, and answer the questions in TRACS. When making calculations always round up (for example: 33 x 7% = 2.31, round up to 3.00) Check Figures: Gross Margin Total assets Ending Retained Earnings $39,600 $19,300 $5,507 Bobcat Printing Sales Budget Month 1 Month 2 Month 3 Total Section 1: Projected Sales Cash Sales Sales on Account Total Budgeted Sales Section 2: Schedule of Cash Receipts Current Cash Sales Plus: Collections of A/R Total Budgeted Collections Bobcat Printing Inventory Purchases Budget Month 1 Month 2 Month 3 Total Section 1: Projected Sales Budgeted Cost of Goods Sold Plus: Desired Ending Inventory Total Inventory Needed Less: Budgeted Beginning Inventory Required Purchases (on account) luus Section 2: Schedule of Cash Payments A/P Cash Payments Total Budgeted Disbursements for Inventory . . $ SG&A Budget Month 1 Month 2 Month 3 Total Section 1: Projected SG&A Expense Rent Expense Donations (10% of sales) Advertising (3% of sales) Miscellaneous (1% of sales) Total SG&A Expense Section 2: Schedule of Cash Payments Rent Expense Donations (10% of sales) Advertising (3% of sales) Miscellaneous (1% of sales) Total SG&A Expense Bobcat Printing Pro-Forme Income Statement Bobcat Printing Statement of changes in Owner's Equity Bobcat Printing Pro-Forma Balance Sheet Bobcat Printing Pro-Forma Cash Flow Statement Beginning and famings Plus: Net Income Less: Owner's Ending Retained Earnings Total Owner's Equity Accounts Receivable Building Cost of Goods Sold Gross Margin Operating Expenses Rent Expense Donations Advertising Expense Miscellaneous Expense Interest Expense Total Operating Expenses Cash flow from operating activities Cash receipts from customers Cash payments for inventory Cash payments for G&A Cash payments for interest Net cash flow from operating activities ow from investi ties Purchase of building Net cash flow from investing activities Cash flow from financing activities Accounts Payable C Net Check Figures Gross Margin Total assets Ending Retained Earnings Retained Earnings Total Equity Total Liabilities & Equity Payments to owners Net cash flow from financing activities Plus Beginning Balance Ending Cash Balance Excel - Business Budget (25pts) The objective of this exercise is to test whether you understand and can construct an operating budget. It also gives each student exposure to using excel. Ultimately, you will be required to answer a series of questions related to the master budget, but the first step is to complete the budget accurately to get the questions correct. The following numbers are "check figures. Gross margin: $39,600 Total assets: $19,300 Ending retained earnings balance: $5,507 If you have completed the cash budget correctly then you will get these results in your operating budget which will allow you to answer each question correctly. When making calculations always round up (ie. 33 x 7% = 2.31, round up to 3.00). You may also assume that there are 30 days in each month of the first quarter. ACCT 2301: Business Budget Project Bobcat Printing makes custom t-shirts and other promotional products for student organizations and businesses. It is beginning its first year of operations and needs to plan for its first quarter of operations. They would like to maximize their profits, and understand that accurate budgeting can help achieve that goal. The budgets will be prepared based on the following information a. Sales are budgeted at $20,000 for Month 1, $25,000 for Month 2, and $27,000 for Month 3. All sales will be done on account. Company does not expect to have any cash sales. b. Sales are collected 60% in the month of the sale, and 40% in the month following the sale. c. Cost of Goods Sold is budgeted at 45% of Sales d. Monthly selling, general, and administrative expenses are as follows: donations are 10% of sales: advertising is 3% of sales; miscellaneous is 1% of sales and rent is $5,000 per month. All SG&A expenses are paid in the month they are incurred. e. Since all of the orders are custom made, no inventory is kepton hand at the end of the month. 1. Inventory purchases are paid in full in the month following the purchase. 9. Bobcat Printing is planning to purchase a building in Month 3 for $6,000 in cash. h. They would like to maintain a minimum cashbalance of $2,500 at the endofeach month. The company has an agreementwithalocal bank that allows themtoborrow, with a totalline of credit of $20,000. The interest rate on these loans is 1% per month(12% annual). They would as far as able repay the loanonthelast day ofthe month when ithasenough cashto pay the full balance and maintain an adequate ending cash balance The owner makes a draw of $3,000 every month (Note: sole proprietors and partnerships take owner's draws, while stockholders receive dividends). Based upon the information provided, complete the operating budgets provided in the excel template, and answer the questions in TRACS. When making calculations always round up (for example: 33 x 7% = 2.31, round up to 3.00) Check Figures: Gross Margin Total assets Ending Retained Earnings $39,600 $19,300 $5,507 Bobcat Printing Sales Budget Month 1 Month 2 Month 3 Total Section 1: Projected Sales Cash Sales Sales on Account Total Budgeted Sales Section 2: Schedule of Cash Receipts Current Cash Sales Plus: Collections of A/R Total Budgeted Collections Bobcat Printing Inventory Purchases Budget Month 1 Month 2 Month 3 Total Section 1: Projected Sales Budgeted Cost of Goods Sold Plus: Desired Ending Inventory Total Inventory Needed Less: Budgeted Beginning Inventory Required Purchases (on account) luus Section 2: Schedule of Cash Payments A/P Cash Payments Total Budgeted Disbursements for Inventory . . $ SG&A Budget Month 1 Month 2 Month 3 Total Section 1: Projected SG&A Expense Rent Expense Donations (10% of sales) Advertising (3% of sales) Miscellaneous (1% of sales) Total SG&A Expense Section 2: Schedule of Cash Payments Rent Expense Donations (10% of sales) Advertising (3% of sales) Miscellaneous (1% of sales) Total SG&A Expense Bobcat Printing Pro-Forme Income Statement Bobcat Printing Statement of changes in Owner's Equity Bobcat Printing Pro-Forma Balance Sheet Bobcat Printing Pro-Forma Cash Flow Statement Beginning and famings Plus: Net Income Less: Owner's Ending Retained Earnings Total Owner's Equity Accounts Receivable Building Cost of Goods Sold Gross Margin Operating Expenses Rent Expense Donations Advertising Expense Miscellaneous Expense Interest Expense Total Operating Expenses Cash flow from operating activities Cash receipts from customers Cash payments for inventory Cash payments for G&A Cash payments for interest Net cash flow from operating activities ow from investi ties Purchase of building Net cash flow from investing activities Cash flow from financing activities Accounts Payable C Net Check Figures Gross Margin Total assets Ending Retained Earnings Retained Earnings Total Equity Total Liabilities & Equity Payments to owners Net cash flow from financing activities Plus Beginning Balance Ending Cash Balance
