Master Budget Preparation

$1.$ Schedule of expected cash collections:

Schedule of expected cash collections:

April May June Quarter

Cash sales $$36,000*$

Credit sales$1$ $$20,000*$

Total collections $$56,000*$

$140\%$ of the preceding month$$s sales.

$*$Given$.$

$2.$ Inventory purchases budget:

Inventory purchases budget::

April May June Quarter

Budgeted cost of goods$1$ $$45,000*$ $ $54,000*$

Add desired ending Inventory$2$ $$43,200*$

Total needs $$88200*$

Less beginning inventory $36,000*$

Required purchases $$52,200*$

$1$For April sales: $$60,000$ sales $\backslash$times $75\%$ cost ratio $=$ $$45,000.$

$*$Given$.$

$3.$Schedule of Expected Cash Disbursements$$ Purchases

Schedule of Expected Cash Disbursements$$ Purchases Schedule of Expected Cash Disbursements$$ Purchas

April May June Quarter

March purchases $$21,750*$ $ $54,000*$

April purchases $26,100*$

May purchases $\_\_\_\_\_\_\_\_$

Total disbursements $$47,850*$

$*$Given

$3.$ Schedule of Expected Cash Disbursements$$ Operating Expenses

Schedule of Expected Cash Disbursements$$ Operating expenses Schedule of Expected Cash Disbursements$$ Purchas

April May June Quarter

Salaries and wages $ $7,200*$

Rent $2,500*$

Other expenses $3,600*$

Total disbursements $$13,300*$

$*$Given

$4.$ Cash budget:

Cash Budget Schedule of Expected Cash Disbursements$$ Purchas

April May June Quarter

Beginning Cash balance $ $8,000*$

Add cash collections $56,000*$

Total cash available $64,000*$

Less disbursements:

Purchase of inventory $47,850*$

For expenses $13,300*$

For equipment $1,500*$

Total $62,650$

Net Receipts $/$payments $1,350$

Borrowings $3,000$

Repayments $--$

Interest $--$

Ending cash Balance $4350$

$*$Given$.$

$5.$ Income Statement for the Quarter Ended June $30$

Ramblewood Company

Income Statement for the Quarter Ended June $30$

$

Sales

Less cost of goods sold:

Beginning inventory

Add purchases

Goods available for sale

Less ending inventory

Gross margin

Less operating expenses:

Salaries and wages

Rent

Depreciation

Other expenses

Net operating income

Less interest expense

Net income

$6.$Balance Sheet

Ramblewood Company

Balance Sheet June $30$

$

Fixed assets$$ net

Total assets

Current Assets:

Inventory

Accounts receivable

Cash

Total current assets

Total Assets

Shareholders equity & Liabilities:

Common stock $*$

Retained Earnings$*$

Current Liabilities:

Accounts payable

Total Equity & Liabilities$-$

$*$Given

Workings:

$*$Retained earnings, beginning $.........................$

Add net income $...............................................$

Retained earnings, ending........................