Minimum ending cash balance Selling price $ 10,000 8 Recent and forecast sales (in units): January (actual) February (actual) March (actual) 20,000 24,000 28,000 35,000 45,000 60,000 40,000 36,000 32,000 April May , June July August 7 September 90% 9 Desired ending inventories (percentage 0 of next month's sales) 1 Cost of earrings 5 3 Purchases paid as follows: 24 In month of purchase 25 In following month 26 27 Collection on sales 28 Sales collected current month 29 Sales collected following month 30 Sales collected 2nd month following 31 32 Variable monthly expenses: 33 Sales commissions (per tie) 50% 50% 25% 50% 25% 1.00 34 Fixed monthly expenses: Wages and salaries Utilities Insurance Depreciation Miscellaneous $ 22,000 $ 14,000 1,200 1,500 3,000 Land purchased in May $25,000 $ 12,000 Dividends declared each quarter Balance sheet at March 31: Cash Assets $ 14,000 Accounts receivable February sales $ 48,000 168,000 March sales Inventory (31,500 units) Prepaid insurance Fixed assets, net of depreciation Total assets 216,000 157,500 14,400 172,700 S 574,600 Liabilities and Stockholders' Equity Accounts payable Dividends payable Capital stock Retained earnings Total liabilities and stockholders' equity $ 85,750 12,000 300,000 176,850 $ 574,600 Agreement with Bank: Borrowing increments Maximum borrowing amount Interest rate per month Repayment increments Total of interest paid each quarter Required minimum cash balance 1,000 $ 40,000 196 1,000 100% $ 10,000 CRAVAT SALES COMPANY Budgets April May June Quarter Enter the appropriate data in the yellow cells Your final answers for each section will be verified 1a. Sales budget: Budgeted sales in units Selling price per unit Total sales 1b. Schedule of expected cash collections: February sales March sales April sales May sales June sales 0 Total cash collections 2 1c. Merchandise purchases budget: 3 Budgeted sales in units 4 Add budgeted ending inventory 5 Total needs 6 Less beginning inventory 7 Required unit purchases 8 Unit cost 9 Required dollar purchases 30 1 1d. Budgeted cash disbursements for merchandise purchases: 32 March purchases 33 April purchases 34 May purchases 35 June purchases 36 Total cash payments 37 7 CRAVAT SALES COMPANY Cash Budget For the Three Months Ending June 30 Enter the appropriate data in the yellow cells. Your answers for "Cash balance, ending will Cash balance, beginning 8 Add receipts from customers e foh balance, ending" min Total cash available 8 Less disbursements 9 Purchase of inventory 0 Sales commissions 1 Salaries and wages 2 Utilities 3 Miscellaneous 4 Dividends paid 55 Land purchases 56 Total disbursements 57 Excess (deficiency) of receipts 58 over disbursements 59 Financing 60 Borrowings 61 Repayments 62 Interest 63 Total financing 64 Cash balance, ending 65 67 68 69 70 CRAVAT SALES COMPANY Budgeted Income Statement For the Three Months Ended June 30 Enter the appropriate data in the yellow cells Your answer for "Net income" will be verified 71 2 Sales in units 73 Sales 74 Variable expenses 75 Cost of goods sold 76 Commissions 7 Contribution margin 78 Fixed expenses: 79 Salaries and wages BO I Uilities 1 Insurance expired 82 Depreciation 83 Mscellaneous 84 Net operating income 85 Less interest expense 86 Net income 0 CRAVAT SALES COMPANY Budgeted Balance Sheet June 30 3 4 5 Cash 6 Accounts receivable 7 Inventory 8 Unexpired insurance 9 Fxed assets, net of depreciation 00 Total assets 01 02 03 Accounts payable, purchases 04 Dividends payable 05 Loans payable, bank 06 Capital stock, no par 07 Rotained earnings 08 Total liabilties and equity 109 110 Accounts receivable at June 30: 111 May sales 112 June salos 113 Total 114 115 Retained earnings at June 30: 116 Balance, March 31 117 Add net income 118 Total 119 Less dividends declared 120 Balance, June 30 121 Assets INT: Use calaulation ter the appropriate data in the yellow cells. wer for Total assets" will be below. Liabilities and Stockholders Equity HINT: Use calculation below. Minimum ending cash balance Selling price $ 10,000 8 Recent and forecast sales (in units): January (actual) February (actual) March (actual) 20,000 24,000 28,000 35,000 45,000 60,000 40,000 36,000 32,000 April May , June July August 7 September 90% 9 Desired ending inventories (percentage 0 of next month's sales) 1 Cost of earrings 5 3 Purchases paid as follows: 24 In month of purchase 25 In following month 26 27 Collection on sales 28 Sales collected current month 29 Sales collected following month 30 Sales collected 2nd month following 31 32 Variable monthly expenses: 33 Sales commissions (per tie) 50% 50% 25% 50% 25% 1.00 34 Fixed monthly expenses: Wages and salaries Utilities Insurance Depreciation Miscellaneous $ 22,000 $ 14,000 1,200 1,500 3,000 Land purchased in May $25,000 $ 12,000 Dividends declared each quarter Balance sheet at March 31: Cash Assets $ 14,000 Accounts receivable February sales $ 48,000 168,000 March sales Inventory (31,500 units) Prepaid insurance Fixed assets, net of depreciation Total assets 216,000 157,500 14,400 172,700 S 574,600 Liabilities and Stockholders' Equity Accounts payable Dividends payable Capital stock Retained earnings Total liabilities and stockholders' equity $ 85,750 12,000 300,000 176,850 $ 574,600 Agreement with Bank: Borrowing increments Maximum borrowing amount Interest rate per month Repayment increments Total of interest paid each quarter Required minimum cash balance 1,000 $ 40,000 196 1,000 100% $ 10,000 CRAVAT SALES COMPANY Budgets April May June Quarter Enter the appropriate data in the yellow cells Your final answers for each section will be verified 1a. Sales budget: Budgeted sales in units Selling price per unit Total sales 1b. Schedule of expected cash collections: February sales March sales April sales May sales June sales 0 Total cash collections 2 1c. Merchandise purchases budget: 3 Budgeted sales in units 4 Add budgeted ending inventory 5 Total needs 6 Less beginning inventory 7 Required unit purchases 8 Unit cost 9 Required dollar purchases 30 1 1d. Budgeted cash disbursements for merchandise purchases: 32 March purchases 33 April purchases 34 May purchases 35 June purchases 36 Total cash payments 37 7 CRAVAT SALES COMPANY Cash Budget For the Three Months Ending June 30 Enter the appropriate data in the yellow cells. Your answers for "Cash balance, ending will Cash balance, beginning 8 Add receipts from customers e foh balance, ending" min Total cash available 8 Less disbursements 9 Purchase of inventory 0 Sales commissions 1 Salaries and wages 2 Utilities 3 Miscellaneous 4 Dividends paid 55 Land purchases 56 Total disbursements 57 Excess (deficiency) of receipts 58 over disbursements 59 Financing 60 Borrowings 61 Repayments 62 Interest 63 Total financing 64 Cash balance, ending 65 67 68 69 70 CRAVAT SALES COMPANY Budgeted Income Statement For the Three Months Ended June 30 Enter the appropriate data in the yellow cells Your answer for "Net income" will be verified 71 2 Sales in units 73 Sales 74 Variable expenses 75 Cost of goods sold 76 Commissions 7 Contribution margin 78 Fixed expenses: 79 Salaries and wages BO I Uilities 1 Insurance expired 82 Depreciation 83 Mscellaneous 84 Net operating income 85 Less interest expense 86 Net income 0 CRAVAT SALES COMPANY Budgeted Balance Sheet June 30 3 4 5 Cash 6 Accounts receivable 7 Inventory 8 Unexpired insurance 9 Fxed assets, net of depreciation 00 Total assets 01 02 03 Accounts payable, purchases 04 Dividends payable 05 Loans payable, bank 06 Capital stock, no par 07 Rotained earnings 08 Total liabilties and equity 109 110 Accounts receivable at June 30: 111 May sales 112 June salos 113 Total 114 115 Retained earnings at June 30: 116 Balance, March 31 117 Add net income 118 Total 119 Less dividends declared 120 Balance, June 30 121 Assets INT: Use calaulation ter the appropriate data in the yellow cells. wer for Total assets" will be below. Liabilities and Stockholders Equity HINT: Use calculation below