managerial accounting for managers

Prepare the following budgets for a retail company on a computer spreadsheet. Follow the format of the budgets shown in chapter 9 of your textbook. Place all budgets for each scenario on a single page if possible. Your name student Id # and section number should appear on each page. Prepare a sales budget for January through May. The selling price per unit is $40.00. Use the last five digits of your student identification number to fill in the blanks on the budgeted sales in units. If your number contains a 0 use 1 instead. For example, if the last five digits in your student ID number are 14607, the budgeted sales in units would be: Prepare a purchases budget for January through March, and the find quarter in total. Assume that me company only sells one product that can he purchased at $15.00 per unit The market for this product is very competitive and customers highly value service such as quality and on time delivery of the product Also assume that currently . it is company policy that ending inventory should equal 50% of nest month s projected sales. Prepare a cash budget for January through March and for the first quarter in total The company maintains a minimum cash balance of $50,000.00. and this was the balance in live cash account on January 1 Past experience shows that 30* of sales are collected in the month of the sale, and 70* in the month following the sale. Labor cost is $15 per unit Other expenses include $17,000 per month for rent. $4,000 for advertising, and $6,000 per month for depreciation All costs are paid in the current month except inventory purchases, which are paid in the month following purchase (i.e. January purchases are paid in February). On January 1^st there was an outstanding accounts payable balance of $100,000. The company has an open line of credit with a bank and can borrow at an annual rate of 12%. For simplification assume that all loans are made at the beginning of the month and repayments are nude at the end, and interest is only paid at the time when repayment is made. Additionally all loans and repayments (not the interest portion) can only he mark in increments of $1000 and the company would like to pay its debts, or a portion thereof, as soon as it has enough cash to do so. Prepare the Budgeted Income Statement based on the information given above. Lable this budget scenario as A., Repeal steps 2-4 for budget scenarios B and C using the following Desired ending inventory assumptions Write a brief analysis of the three inventory policies and explain which policy the company should choose Your write up should include a discussion of the results your obtained from the analyses above and should be the form of a one page Memo to the President of the company (make up a name). Assume that you are writing behalf of a financial consultant advising the President about the company's inventory policies. Organization. grammar and spelling are important. Print out your spreadsheet 'formula sheet' and upload it along with the project. It is best if you upload a of your project to Blackboard as sometimes newer formats are difficult to open