Question
I need help with the following tables H, I, J below: [ The following information applies to the questions displayed below. ] Camden Company is
I need help with the following tables H, I, J below:
[The following information applies to the questions displayed below.]
Camden Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks:
Required
Salary expense (fixed) | $ | 9,000 | |
Sales commissions | 5 | % of Sales | |
Supplies expense | 2 | % of Sales | |
Utilities (fixed) | $ | 700 | |
Depreciation on store fixtures (fixed)* | $ | 2,000 | |
Rent (fixed) | $ | 2,400 | |
Miscellaneous (fixed) | $ | 600 | |
- *The capital expenditures budget indicates that Camden will spend $82,000 on October 1 for store fixtures, which are expected to have a $10,000 salvage value and a three-year (36-month) useful life.
Use this information to prepare a selling and administrative expenses budget.
-
Prepare a pro forma income statement for the quarter.
-
Prepare a pro forma balance sheet at the end of the quarter.
-
Prepare a pro forma statement of cash flows for the quarter.
Updated information:
Camden Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks:
Required
-
October sales are estimated to be $125,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 8 percent per month. Prepare a sales budget.
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The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts.
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The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending inventory equal to 10 percent of the next months cost of goods sold. However, ending inventory of December is expected to be $6,000. Assume that all purchases are made on account. Prepare an inventory purchases budget.
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The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the following month. Prepare a cash payments budget for inventory purchases.
-
Budgeted selling and administrative expenses per month follow:
Salary expense (fixed) | $ | 9,000 | |
Sales commissions | 5 | % of Sales | |
Supplies expense | 2 | % of Sales | |
Utilities (fixed) | $ | 700 | |
Depreciation on store fixtures (fixed)* | $ | 2,000 | |
Rent (fixed) | $ | 2,400 | |
Miscellaneous (fixed) | $ | 600 | |
- *The capital expenditures budget indicates that Camden will spend $82,000 on October 1 for store fixtures, which are expected to have a $10,000 salvage value and a three-year (36-month) useful life.
UPDATED DATA...... (HERE IS THE PREVIOUS PARTS.. I DO NOT NEED HELP WITH THOSE).
Required H Required I Required Prepare a pro forma income statement for the quarter CAMDEN COMPANY Pro Forma Income Statement For the Quarter Ended December 31, 2019 S 405,800 243,480 162,320 72,506 89,814 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses Operating Income Interest expense Net income 89,814 Required HRequired I ERequired J Prepare a pro forma balance sheet at the end of the quarter. (Amou CAMDEN COMPANY Pro Forma Balance Sheet December 31, 2019 Assets $ 82,000 6,604 6,000 Store fixtures Cash Inventory Accounts receivable Less: Accumulated depreciation(6 $ 87,480 81,480 $ 176,084 Total assets Liabilities $ 25,420 63,000 87,664 Accounts payable Accounts payable Retained earnings Equity $ 176,084 Total liabilities and equity Required H Required 1 Required J Prepare a pro forma statement of cash flows for the quarter. (Amounts to be deducted shoul CAMDEN COMPANY Pro Forma Statement of Cash Flows For the Quarter Ended December 31, 2019 Cash flows from operating activities Net cash flows from operating activities Cash flows from investing activities Cash flow from financing activities 0 Required A Required B Required C Required D Required E Required F Required G expects sales to increase at the rate of 8 percent per month. Prepare a sales budget. October November December Sales Budget Cash sales Sales on account Total budgeted sales $ 50,000 54,000 58,320 5,00081,00087,480 $ 125,000 $ 135,000 145,800 Required ARequired BRequired C Required D Required E Required Required G The company expects to collect 100 percent of the accounts receivable generated by credit sales in th sale. Prepare a schedule of cash receipts. October November December Schedule of Cash Receipts Current cash sales Plus collections from A/R Total collections 50,000 Os 54,000 os 58.320 75,00081000 $ 50,000 129,000 139,320 Required A Required BRequired C Required D Required E Required FRequired G The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending i percent of the next month's cost of goods sold. However, ending inventory of December is expected hat all rchases are made on account. Prepare an inventory purchases budget. November December October Inventory Purchases Budget Budgeted cost of goods sold Plus: Desired ending inventory8,00876,000 Inventory needed Less: Beginning inventory Required purchases (on account) $ 75,000$ 81,000S 87,480 83,100 93,480 8,008,748 $ 83,100 81,648 84,732 89,748 Required A Required B Required C Required DRequired ERequired F Required G The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 perc month. Prepare a cash payments budget for inventory purchases. (Round your final answers to the nea amounts.) October November December Schedule of Cash Payments Budget for Inventory Purchases Payment of current month's accounts payable 58,17057,154 Payment for prior month's accounts payable Total budgeted payments for inventory 59,312 24,93024,494 $ 58,170 82,084$ 83,806 Required E> Required C Required A Required B Required C Required DRequired ERequired Required G Prepare a selling and administrative expenses budget. October December November Selling and Administrative Expense Budget Salary expense Sales commissions Supplies expense Utilities Depreciation on store fixtures Rent Miscellaneous Total S&A expenses 9,000 9,000 9,000 6,2506,7507,290 ,5002,7002,916 700 ,0002,0002,000 2,400 600 $ 23,450 $ 24,150 24,906 700 700 2,4002,400 600 600 Required B Required C Required D Required ERequired F Required G Required A Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid they are incurred. Prepare a cash payments budget for selling and administrative expenses October November December Schedule of Cash Payments for S&A Expenses Salary expense Sales commissions Supplies expense Utilities Depreciation on store fixtures Rent Miscellaneous Total payments for S&A 9,000 9,000 9,000 6,206,750 2,7002,916 700 2,5002 700 2,4002,400 600 2,400 600 $ 14,500 21,650 22,366 600 expenses Cash Budget October December 0$6,330 6,000 50,000129,000 139,320 145,320 Novomber Beginning cash balance Add: Cash receipts Cash available Less: Payments 135,330 50,000 58,17082,084 14,500 82,000 83,87 22,366 For inventory purchases For selling and administrative expenses Purchase of store fixtures Interest expense 21,650 865 107,038 104,844 154,670 Total budgeted payments Payments minus receipts (104,670) Surplus (shortage) 30,486 38,282 Financing activity 111000(24,486)(32,282) $ 6,330 6,000 6,000 Borrowing (repayment) Ending cash balance
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