l Question 1:51 PI Status Queet on 1 in this assignment il not beraded. Ho ever you NEED it or the rac s of the p ob er a eig ed epeo cally to you and you wil use it too eck answere om the excel soresceheet You will turn i Once you ge: the correct numbers in your spreadsheet yau da nat totore-enter them below. Just enter the nunbers you are stil neecirg to check. (Remember, Question 1. is rat graced.) Question 2 in ths assgnment must ba compilated in OVWL and is GRADED. Your paints on this quastion ana yaur grada for Budget Projact, par 2. Sgve your excel budget as you go. You will need it to complete OWL question 2, 98 well 8s to tum in 88 Budget Project, Part 1 el e read8heet 88 your Budget P o ect, part 1 and THAT \il b raded e e Fabulous is a ratal company ther sals spacaiznd garcening products. The oampany is corsiceing apening a new store an Cctohar 1, Yaar1. As budge: coordinator, you have beenked to prapara a mastar bungat far he hrst 3 manns af the company's operation. You haa gatherac the fellowirg information: ocnaber sals are nstimand be500000 D which 45 paraent wil be cash ar rt rnm nner wil be on aredt. Trn com any nxpects al sesin increase at thn rate at 10 perant per manth tr Navambar and Deon TIe company expects to collect 100 percent of the accounts recevable enerated by credit sees in the month rolowing me see. Prepare a sales budget and schedule o cash recep s usng these facts and your exce temple e. Check your answers here before movng to the next par by completing the Oels requested n t et chert below a. Sales bar. Salas in January Yoar 2 arn ex acted to ba S400000 Octaber November December Tatal-Ctr Salas on acccunt Total budgeted sales ule of Cash o Total- October November December Current cash sales Total callactians The coetofgoode 80 d is 8 percent or sales The con peny desire o mai ain minimum ending inventory ec al to 30 percent of the next mont's cost goods so d Ending nver o tor December i8 b a Assume that all mventory purc ases are mace on account on credit The c mpany pays 4 percent of acogurts payable r t e marithofpurc ase ard th rer anng armourt in the fo owing month. In coco , prenarn an inventry purchases bungatard tish payments budget tor inventary purchases. usn tha check tgures tow batorn you mronuo. on budge ed Jen ery Yaar2 88 ee October Total-Qtr d coat at gonds sod lus dasrd andng inventary needed eginng inventery payme Datober November December Total-Qtr me of cumen: Payrnent for prior monith's bucgeted peyments Budgeted selling and administrative expenses per month follow. .Salary expense (fixed): S 38400 .Sales commissions: 5 percent of Sales .Supplies expense: 2 percent of Sales .Utilities (fixed): $3200 . Depreciation on store equipment (fixed): You compute . Rent (fixed) $12000 Miscellaneous (fixed): $ 2000 The capital expenditures budget indicates that the company will spend $900000 on October 1 for store fixtures, which are expected to have a $24000 residual value and a 96 month useful life Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in the month in which they are incurred. In excel, prepare the selling and administrative expenses budget and the cash payments budget for selling and administrative expenses. Check the key figures below Selling and dmin.Expense October November December Total-Qtr udget Salary ex Sales commissions Supplies expense Utilities Depreciation on store xtures Rent Miscellaneous Total S&A expenses ash payments alary expense tober November otal-Qtr cem Sales commissions Utilities Depreciation on store fixtures ent Miscellaneous Total payments for S&A xpenses Fabulous issued common stock for S600000 an October . A dhMdand af $2600was paid an Dacemaer 15. The company bomo 8 9nd epeye unce in in re mente o $1.000 on me last day ot he month. Prepare a cash budget on your excal template. Check key figure below ays its vendors on the last day 0 he mont It peys intere t 0 1 percent per month in on he asi day o the To be p uden te company dee es to maintain a s40 e oom any as as Begnning cach belanca Colecions fram ustomers Cash evailable r invenory Intarast expanse Tatal budgetnc aymente Towng Endng cesh belence
