managerial accounting 16th edition. this is all one question.
Check my work You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below. The company sells many styles of earrings, but all are sold for the same price-$10 per pair Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings) January (actual) 2e,eee June (budget) 50, eee February (actual) 26,eee July (budget) 38,eee March (actual) 4e, eee August (budget) April (budget) September (budget) 25, eee May (budget) The concentration of sales before and during May is due to Mother's Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month Suppliers are paid $4 for a pair of earrings. One-half of a month's purchases is paid for in the month of purchase, the other half is paid for in the following month All sales are on credit Only 20% of a month's sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale Bad debts have been negligible 28, cee 65, eee 1ee, eee Prev 1 of 1 Next 70F A O 843F 11/6/21 . HIVYO HICI VE SER debts have been negligible Monthly operating expenses for the company are given below: Variable: Sales commissions 4% of sales Fixed: Advertising $ 200,000 Rent $ 18,000 Salaries $ 106,000 Utilities , $ 7,000 Insurance $ 3,800 Depreciation $ 14,000 Insurance is paid on an annual basis, in November of each year, The company plans to purchase $16,000 in new equipment during May and $40,000 in new equipment during June; both purchases will be for cash The company declares dividends of $15,000 each quarter, payable in the first month of the following quarter The company's balance sheet as of March 31 is given below Assets Cash $ 74, eee Accounts receivable ($26,808 February sales: $320,eee March Prev 1 of 1 Next o O 70'F BI . Question 1 Ch Connect Connect https://eztomheducation.com/ext/map/indexhtml?con con&external browserslaunchurlah 8 Connect - Saved Help Save & Exit Submit Check my work 1 Skipped Book The company's balance sheet as of March 31 is given below. Assets Cash Accounts receivable ($26, dee February sales; $320,000 March $ 74, eee sales) 346,000 Inventory 125,000 Prepaid insurance 21, cee Property and equipment (net) 950, eee Total assets $ 1,495, eee Liabilities and Stockholders' Equity Accounts payable $ 180, eee Dividends payable Common stock 800,000 Retained earnings 580,cee Total liabilities and stockholders' equity $ 1,495, eee The company maintains a minimum cash balance of $50.000. All borrowing is done at the beginning of a month any repayments are made at the end of a month The company has an agreement with a bank that allows the company to borrow in increments of S1,000 at the beginning of each month The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible in increments of $1.000), while still retaining at least $50,000 in cash. 15.000 rences w Prev Next 1 of 1 search O E 70F Question 1 - Ch 8 Connect - B - Connect ttps://ezto.mheducation.com/ext/map/index.html?con con&external browser=0&launchurlah. E-B Saved Help Save & Exit Check Required: Prepare a master budget for the three-month period ending June 30. Include the following detailed schedules: 1. a. A sales budget, by month and in total b. A schedule of expected cash collections, by month and in total. c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total. d. A schedule of expected cash disbursements for merchandise purchases, by month and in total 2. A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $50,000 3. A budgeted income statement for the three-month period ending June 30. Use the contribution approach 4. A budgeted balance sheet as of June 30. Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 10 Required 1D Required 2 Required 3 Required 4 Prepare a master budget for the three-month period ending June 30 that includes a cash budget. Show the budget by month a in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $50,000. (Cash deficiency repayments and interest should be indicated by a minus sign.) Required 1A Required 1B Required 1C Required 1D Required 2 Required 3 Required 4 Prepare a master budget for the three-month period ending June 30 that includes a sales budget, b Sales Budget April May June Quarter Budgeted unit sales Selling price per unit Total sales 1 of 1 Next Prev Required 1A Required Required 10 Required 10 Required 2 Required 3 Required 4 Prepare a master budget for the three-month period ending June 30 that includes a schedule of ex month and in total. Earrings Unlimited Schedule of Expected Cash Collections April May June Quarter $ 0 0 0 February sales March sales April sales May sales June sales Total cash collections 0 0 $ 0 $ 0 $ 0 $ 0 Required 1A Required 1B Required 10 Required 10 Required 2 Required 3 Required 4 Prepare a master budget for the three-month period ending June 30 that includes a merchandise purchase and in dollars. Show the budget by month and in total. Earrings Unlimited Merchandise Purchases Budget April May June Quarter Budgeted unit sales 0 Total needs 0 0 0 0 0 0 0 0 Required purchases Unit cost Required dollar purchases $ 0 $ 0 $ 0 $ 0 Prev 1 of 1 Next meducation.com video comedor on Connect Here are 1 Here 1A 1B Nordic Maqur 10 eur Rew Ret Propers a matter budget for the three month period ending June 30 that include a schedule of edhe For and purchases, by month and into Ratings Limited Budgeted Cash Distants for chance these April May June Quarter At Ah May Burch Aine purch SOS 1 of 1 Next Prev Required 1A Required Required 10 Required 10 Required 2 Required 3 Required 4 Prepare a master budget for the three-month period ending June 30 that includes a schedule of ex month and in total. Earrings Unlimited Schedule of Expected Cash Collections April May June Quarter $ 0 0 0 February sales March sales April sales May sales June sales Total cash collections 0 0 $ 0 $ 0 $ 0 $ 0 Required 1A Required 1B Required 10 Required 10 Required 2 Required 3 Required 4 Prepare a master budget for the three-month period ending June 30 that includes a merchandise purchase and in dollars. Show the budget by month and in total. Earrings Unlimited Merchandise Purchases Budget April May June Quarter Budgeted unit sales 0 Total needs 0 0 0 0 0 0 0 0 Required purchases Unit cost Required dollar purchases $ 0 $ 0 $ 0 $ 0 Prev 1 of 1 Next meducation.com video comedor on Connect Here are 1 Here 1A 1B Nordic Maqur 10 eur Rew Ret Propers a matter budget for the three month period ending June 30 that include a schedule of edhe For and purchases, by month and into Ratings Limited Budgeted Cash Distants for chance these April May June Quarter At Ah May Burch Aine purch SOS
