Need #2

VERSION 2 MASTER BUDGET TEMPLATE 1. Schedule of expected cash collections: Cash sales Credit sales Total cash collections "Given. January $100,000 224,000 $324,000 February March Quarter $140,000 $80,000 $320,000 $400,000 $560,000 1,184,000 $540,000 $640,000 $1,504,000 Quarter $960,000 45.000 1,005,000 2. a.Inventory purchases budget: January February March Budgeted cost of goods sold $300,000 Add desired ending inventory 105,000* Total needs 405,000 Less beginning inventory 60.000 * Required purchases $345.000 * *For January sales: $500,000 x 60% cost ratio = $300,000 At January 31: $420,000 x 25% = $105,000. At March 31: $300,000 April sales x 60% cost ratio x 25% = $45,000. "Given. 60,000 945,000 b.Schedule of cash disbursements for merchandise purchases: January February March Quarter December purchases $ 92,000 $ 92,000 * 172,500 - $172,500 - 345,000 375,000 112.500 January purchases February purchases March purchases Total cash disbursements for purchases "Given. $264,500 - $924,500