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 48,000

A/c receivable 224,000

Inventory 60,000

Building and equipment net 370,000

A/c payable 93,000

Capital stock 500,000

Retained earnings 109,000

1 Gross profit is 40% of sales

2Actual and budgeted sales data

March 280,000

April 400,000

May 600,000

June 300,000

July 200,000

3sales are 20% for cash and 80% on credit. Credit sales are collected in the month following sales

4Each month ending inventory should equal to 25% of following month cost of goods sold

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

6Monthly expense are follows

Salaries and wages 27,000

Advertising exp 70,000 per month

Shipping , 5% of sales

Depreciation 42,000 per quarter

Note these expenses are paid monthly

7Equipment costing 1,700 will be purchase for cash in May, During June other equipment will be purchase for cash at cost 84,500

8 Management would like to maintain a minimum cash balance of at least 30,000 at the end of each month

9the 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

10During April company declare and pay 45, in cash dividends

Required

1Using 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

2income statement

3balance sheet