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Instructions are outlined in the first photo below, please help me figure this out!! I have already completed all budgets based on assumptions I need

Instructions are outlined in the first photo below, please help me figure this out!!

I have already completed all budgets based on assumptions

I need assistance with the Budgeted income statement & budgeted balance sheet

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

A37 for Capital expenditures E G Home October 385,000 un D 1 MOST LIKELY NUMBERS AND ASSUMPTIONS 2 SALES MANAGER PRIVATE INFORMATION July August September Most likely sales S 600,000 $ 910,000 $475,000 $ 4 5 6 7 PURCHASING MANAGER PRIVATE INFORMATION Part 1 Information 8 Most likely cost of merchandise as a % of sales 4596 9 Desired ending inventory as a percentage of next month's cost of 20% 10 11 12 OPERATION MANAGER PRIVATE INFORMATION Part 1 Information 13 Most likely shipping expenses as a percent of sales 5.0% 14 Most likely other expenses as a percent of sales 8.0% 15 Salaries and wages (per month) 85,000 16 Most likely advertising costs (per month) 50,000 17 Most likely insurance costs (per month) 3,000 18 Depreciation expense (per month) 25,000 19 21 FINANCE MANAGER PRIVATE INFORMATION Part 1 Information 22 Percent sales collected in month of sale 3096 23 Percent sales collected in month after sale 7096 24 25 Percent of inventory purchases paid in month of purchase 5096 28 Percent of inventory purchases paid in month after purchase 50% 27 28 Percent of operating expenses paid in month of purchase 100%6 29 Percent of operating expenses paid in month after purchase 0% 30 Desired minimum ending cash balance each month S 35,000 Borrow in increments of S 1,000 33 Monthly interest rate on borrowings (not compounded) 1% 34 35 38 Other planned outlavs of cash July August September 37 Capital expenditures 200,000 $ 90,000 S 39 Dividends 50,000 S S 31 lo Assets S S S S 40,000 340,000 50,000 18,000 40 41 42 SRS Educational Supply Company 43 Balance Sheet 44 Previous Year End 45 48 Current assets: Cash 49 Accounts receivable 49 Inventory 50 Prepaid insurance 51 Total current assets 52 Buildings and equipment (net) 53 TOTAL ASSETS 54 55 56 Liabilites 57 Accounts payable 50 Notes payable 59 Total liabiliti 60 Stockholder's equity 61 Capital stock Retained earnings Total equity 64 TOTAL LIABILITIES AND EQUITY $ 448,000 $ 880,000 $ 1,308,000 Liabilities and Equity S S 130,000 $ 130,000 un 420,000 758,000 $1,178,000 $1,308,000 8898&RBR Instructions Milestone One Instructions Part II Assumptions Part II Sales Budget Part 1 B C G H D E Sales Budget View Assumptions HOME 2 2 3 4 July August September Quarter $ 600,000 $ 910,000 $475,000 $ 1,985,000 5 6 7 Schedule of Cash Collections August September 8 8 July Quarter 9 340,000 340,000 10 180,000 180,000 11 420,000 12 273,000 420,000 273,000 637,000 13 637,000 14 142,500 142,500 693,000 $ 779,500 $ 1,992.500 15 $ 520,000 $ 16 17 18 19 20 Still not Collected) 21 22 23 24 $ $ 1,992,500 332,500 Vi Sales Cost of Merchandise as % of Sales Budgeted Cost of Merchandise Sold Inventory Purchase Budget July August September October $ 600,000 $ 910,000 $ 475,000 $ 385,000 45% 45% 45% 45% $ 270,000 $ 409.500 $ 213,750 $ 173.250 Following Month's COGS Desired Ending Inventory % Desired Ending Inventory Dollars $ 409,500 $ 213,750 $ 173.250 20% 20% 20 81,900 42,750 34,650 Budgeted Cost of Merchandise Sold Plus Desired Ending Inventory Total Inventory Needs Less Beginning Inventory Required Purchases 270,000 81,900 351,900 (50,000) $ 301,900 $ 409,500 213,750 42,750 34,650 452,250 248,400 (81,900) (42,750) 370,350 $ 205,650 Schedule of Expected Cash Disbursements - Purchases July August September Quarter June Purchases (A/P From Balance Sheet) $ 130,000 $ 130,000 July Purchases $ 150,950 $ 150,950 $ 301,900 August Purchases $ 185,175 $ 185,175 $ 370,350 September Purchases $ 102,825 $ 102,825 Total Disbursements $ 280,950 $ 336,125 $ 288,000 $ 905,075 Cost of Merchandise Sold for the Quarter Ending Inventory at the end of the Quarter Ending A/P at the end of the Quarter $ 796,500 $ 27,175 $ 905,075 A B E G View A Selling and Administrative Budget August September Quarter July Sales Shipping as a Percentage of Sales Other Expenses as a Percentage of Sales 5% 8% 5% 8% 5% 8% 5% 8% 30,000 48,000 78,000 45,500 72,800 118,300 23,750 38,000 61,750 99,250 158,800 258,050 - 1 Variable Expenses: e Shipping Other Expenses Total Variable Expenses 5 Fixed Expenses: - Salaries and Wages Advertising B Prepaid Insurance Depreciation Total Fixed Expesnes Total Selling and Admin Expenses 2 3 Less Noncash Items (Depreciation and Prepaid Ins) Total Cash Disbursements 85,000 50,000 3,000 25,000 163,000 241,000 85,000 50,000 3,000 25,000 163,000 281,300 85,000 50,000 3,000 25,000 163,000 224,750 255,000 150,000 9,000 75,000 489,000 747,050 (28,000) 213,000 (28,000) 253,300 (28,000) 196,750 (84,000) 663,050 - Prepaid Insurance That Is Expensed During the Quarter Depreciation Expense Recognized During the Quarter $ $ 9,000 75,000 3 . A B D E View July 40,000 520,000 580,000 Cash Budget August September 35,050 35,435 693,000 779,500 728,050 814,935 Quarter 40,000 1,992,500 2,032,500 280,950 213,000 200,000 50,000 336,125 253,300 90,000 288,000 196,750 - - Cash Balance: Beginning - Add Cash Collections (From Sales Budget) Total cash Available Less Cash Disbursements o For Inventory (From Purchasing Budget) 1 For Operating Expenses (From Selling and Admin Budge 2 For Equipment 3 For Cash Dividends 4 For Interest (From Previous Month's Borrowing) 6 Total Cash Disbursements 6 Excess (Deficiency) of Cash 7 Financing 3 Borrowing 9 Repayment Total Financing 1 Cash Balance: Ending 2 3 4 5 Outstanding Loan Balance 6 Interest on Borrowing (Due the Following Quarter) 905,075 663,050 290,000 50,000 4,270 1,912,395 120,105 $ 743,950 (183,950) 2,190 $ 681,615 46,435 2,080 486,830 328,105 219,000 219,000 (219,000) 219,000 35,050 (11,000) 11,000 35,435 (208,000) 208,000 120,105 120,105 $ $ 219,000 2,190 7 3 9 0 1 2

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