Kraft is a Wholesaler dairy products The following information is available for May 2021 Note the beginning cash balance is $700,000 Parameters Cheese 200,000 hoops at $20 each Milk 300,000 at $10 each Estimated costs Cheese $10 per hoop Milk 5 00 per Gallon Desired Inventories Cheese 20,000 beginning, 24,000 ending Milk 8,000 beginning, 10,000 ending Beginning cash balance is $700,000 Purchases of merchandise are paid 60 in the current month and 40 in the following month Purchases totaled $1,800,000 in April and are estimated to be $2,000,000 in June 2021 Employee wages and salaries are paid for in the current month Employee Expenses for May totaled $156,000 Overhead expenses are paid in the next month The accounts payable amount for these expenses from April is $80,000 and for June will be $90,000 Mays overhead expenses total $80,000 Sales are on credit and are collected 70 in the current period and the remainder in the next period Aprils sales were $3,000,000 and Junes sales are estimated to be $3,200,000 Bad debts average 1 of sales Selling and administrative expenses are paid monthly and total $450,000, including $50,000 of depreciation All unit costs for May are the same as they were in April Required Prepare the following for May 2021 using excel Sales budget Purchase Budget Cash Budget Budgeted Income Statement

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Posted on Jul 17, 2024

Kraft is a Wholesaler dairy products. The following information is available for May 2021. Note the beginning cash balance is $700,000.

Parameters:

Cheese 200,000 hoops at $20 each

Milk 300,000 at $10 each

Estimated costs:

Cheese $10 per hoop

Milk 5.00 per Gallon

Desired Inventories

Cheese 20,000 beginning, 24,000 ending

Milk 8,000 beginning, 10,000 ending

Beginning cash balance is $700,000
Purchases of merchandise are paid 60% in the current month and 40% in the following month. Purchases totaled $1,800,000 in April and are estimated to be $2,000,000 in June 2021.
Employee wages and salaries are paid for in the current month. Employee Expenses for May totaled $156,000.
Overhead expenses are paid in the next month. The accounts payable amount for these expenses from April is $80,000 and for June will be $90,000. Mays overhead expenses total $80,000.
Sales are on credit and are collected 70% in the current period and the remainder in the next period. Aprils sales were $3,000,000 and Junes sales are estimated to be $3,200,000. Bad debts average 1% of sales.
Selling and administrative expenses are paid monthly and total $450,000, including $50,000 of depreciation.
All unit costs for May are the same as they were in April.

Required: Prepare the following for May 2021 using excel