Master budget

The following data relate to the operations of HASF Company a wholesale distributor of consumer goods Current assets as of March 31

Cash 8,000

A/c receivable 20,000

Inventory 36,000

Building and equipment net 120,000

A/c payable 21,750

Capital stock 150,000

Retained earnings 12,250

1 Gross profit is 25% of sales

2 Actual and budgeted sales data

March 50,000

April 60,000

May 72,000

June 90,000

July 48,000

3 sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sales

4 Each month ending inventory should equal to 80% of following month cost of goods sold

5 one half of a month 's inventory purchase is paid for in the month of purchase, other half is paid for in the month.

6 Monthly expense are follows

Commission 12% sales

Rent 2,500 per month

Other expense 6% of sales

Depreciation 900 per month

Note these expenses are paid monthly

7 Equipment costing 1,500 will be purchase for cash in April

8 Management would like to maintain a minimum cash balance of at least 4,000 at the end of each month

9 the company has an agreement with a local bank that allows the company to borrow in the increments of 1,000 at the beginning of each month up to a total loan balance of 20,000. The interest rate on these loan is 1`% per month

Required

Using the preceding data compute, the following for April May June and total

Schedule of expected cash collection

Merchandise purchase budget

Schedule of expected cash disbursements Merchandise purchase

Schedule of expected cash disbursements for selling and administrative expense

Cash budget

income statement

balance sheet