I have worked very hard on this assignment but now I am stuck and need some help finishing the rest. I only need to complete blue boxes and excel will complete the rest. I know I have mostly correct answers but I think some things are wrong. The figures I was given to check my answers are: Gross margin: 39,600, total assets: 19,300 and ending retained earnings 5,507.
Bobcat Printing ' Sales Budget Month 1 Month 2 Month 3 : Cash Sales - .. ' _ Sales on Account .'- _ _ -' _ - '_ ' S 72,000.00 ' Total Budgeted Sales S 20,000.00 5 25,000.00 S 27,000.00 5 72,000.00 . Current Cash Sales 1 Plus: Collections of A/R .- _' ' " ' ' if ' S 27,000.00 1_ Total Budgeted Collections - $ 12,000.00 5 15,000.00 5 27,000.00 l _ Bobcat Printing Inventory Purchases Budget ___ ___ Month 1 Month 2 Month 3 uBdgeted Cost ofGoodsSold .. f -' ._ _ : S 32400. 00 Plus. Desired _nding Inventory = 2,500. 00 Total Inventory Needed 14,062. 50 16,717.50 14,650.00 _ 34,900.00 Less. Budgeted Beginning Inventory 5,062. 50 S 5,467. 50 S t Required Purchases (on account) 14,062.50 S 11 ,655. 00 S 9,182.50 S 34, 900. 00 . _Cash Payments - Total Budgeted Disbursements for Inventory 8, 437. 50 4, 662. 00 3, 673. 00 16, 772. 50 II n u \\a | -r k ., L ! L i 5 Rent Expense 15,000.00 ' Donations {10% of sales) ' ' ' 7,200.00 2'. Advertising {3% of sales) . 2,160.00 3 Miscellaneous (1% of sales) ' ' 720.00 0 1 3 Rent Expense . 15,000.00 4 Donations (10% of sales) . 7,200.00 5 Advertising {3% of sales) 2,160.00 6_ Miscellaneous (1% of sales) 720.00 7 TotaISG&A Expense $ 8,780.00 $ 25,080.00 8 9 0 Bobcat Printing ___ Cash Budget ___ ___ ___ - ___ J l Forlnventory Purchases 2_ For SG&A Expenses 3 Forlnterest Expense 1* Building Purchase 5' Owner's Draws - _ - _ s r 3 J___ Borrowing (Repayment) L 5 (19,238) 2 ___ 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 kept on hand at the end of the month. f. Inventory purchases are paid in full in the month following the purchase. g. Bobcat Printing is planning to purchase a building in Month 3 for $6,000 in cash. h. They would like to maintain a minimum cash balance of $2,500 at the end of each month. The company has an agreement with a local bank that allows them to borrow, with a total line 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 loan on the last day of the month when it has enough cash to pay the full balance and maintain an adequate ending cash balance. i. 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
