NEED:

4. Cash Budget: total disbursements excess of cash, total financing and cash balance ending

5. Check: answers on income statement

VERSION 2 MASTER BUDGET TEMPLATE 1. Schedule of expected cash collections: Cash sales Credit sales Total cash collections January $100,000 224,000 $324,000 February $140,000 $400,000 $540,000 March Quarter $80,000 $ 320,000 $560,000 1,184,000 $640,000 $1,504,000 March Quarter $240,000 $960,000 2. a.Inventory purchases budget: January February Budgeted cost of goods sold $300,000 * $420,000 Add desired ending inventory? 105.000 * $60,000 Total needs 405,000 * 5480,000 Less beginning inventory 60.000 * $105,000 Required purchases $345.000 * $375,000 $45,000 $285,000 45,000 1,005,000 $60,000 $225,000 60.000 945,000 b.Schedule of cash disbursements for merchandise purchases: January February March Quarter $ 92,000 172,500 $172,500 * $187,500 December purchases January purchases February purchases March purchases Total cash disbursements for purchases $ 92,000 345,000 375,000 112,500 $187,500 $112,500 $264,500 $360,000 $300,000 $924,500 3. Schedule of cash disbursements for selling and administrative Expenses: Salaries and wages Advertising Shipping January 27,000 - 70,000 25,000 15,000 $137,000 February $27,000 $70,000 $35,000 $21,000 $53,000 March $27,000 $70,000 $20,000 $12.000 $129,00 Quarter 81,000 210,000 80,000 48.000 $419,000 Other expenses Total 4. Cash budget: January February March Quarter Cash balance, beginning Add cash collections Total cash available Less disbursements: Inventory purchases 47,000 - 324,000 $540,000 $540,00 371,000 - $570,500 $695,800 $ 47,000 1,504,000 1.551.000 264,500 $360,000 $300,000 924,500 137,000 - $153,000 $129,000 - $1,700 $84,500 45,000 446,500 $514,700 $513,500 419,000 85,200 45,000 1,474,700 Selling and administrative expenses Equipment purchases Cash dividends Total disbursements Excess (deficiency) of cash Financing: Borrowings Repayments Interest Total financing Cash balance, ending (75,500)* $55,800 $106,000 _76,300 106,000 $106,000 ($3,130) $109,180 106,000 (106,000) (03.180) ($3,180) 73,120 106,000 30,500 $ 5. Income statement: Income Statement For the Quarter Ended March 31 Sales $1,504,000 Cost of goods sold: $950,000 Beginning inventory (Given) $60,000 Add purchases (Part 2) $945,000 Goods available for sale Ending inventory (Part 2) $45,000 Gross margin Selling and administrative expenses: Salaries and wages (Part 3) $81,000 Advertising (Part 3) Shipping (Part 3) Depreciation ($14,000 x 3) Other expenses (Part 3) Net operating income Interest expense (Part 4) Net income $210,000 $80,000 $42,000 $48.000 $377,000 $3,180 $175,820 6. Balance sheet: Balance Sheet March 31 Assets Current assets: Cash (Part 4) Accounts receivable (80% x $400,000) Inventory (Part 2) Total current assets Buildings and equipment, net ($370,000+ $86,200 - $42,000) Total assets $320,000 $945,000 $414,200 5852,320 Liabilities and Equity Current liabilities: Accounts payable (Part 2: 50% x $225,000) Stockholders' equity: $112,500 Capital stock Retained earnings* Total liabilities and equity THE CALCULATION FOR RETAINED EARNINGS PROVIDED BELOW IS USED TO CALCULATE ENDING RETAINED EARNINGS. ENDING RETAINED EARNINGS IS INCORPORATED INTO THE BALANCE SHEET *Retained earnings, beginning Add net income Total Deduct cash dividends Retained earnings, ending VERSION 2 MASTER BUDGET TEMPLATE 1. Schedule of expected cash collections: Cash sales Credit sales Total cash collections January $100,000 224,000 $324,000 February $140,000 $400,000 $540,000 March Quarter $80,000 $ 320,000 $560,000 1,184,000 $640,000 $1,504,000 March Quarter $240,000 $960,000 2. a.Inventory purchases budget: January February Budgeted cost of goods sold $300,000 * $420,000 Add desired ending inventory? 105.000 * $60,000 Total needs 405,000 * 5480,000 Less beginning inventory 60.000 * $105,000 Required purchases $345.000 * $375,000 $45,000 $285,000 45,000 1,005,000 $60,000 $225,000 60.000 945,000 b.Schedule of cash disbursements for merchandise purchases: January February March Quarter $ 92,000 172,500 $172,500 * $187,500 December purchases January purchases February purchases March purchases Total cash disbursements for purchases $ 92,000 345,000 375,000 112,500 $187,500 $112,500 $264,500 $360,000 $300,000 $924,500 3. Schedule of cash disbursements for selling and administrative Expenses: Salaries and wages Advertising Shipping January 27,000 - 70,000 25,000 15,000 $137,000 February $27,000 $70,000 $35,000 $21,000 $53,000 March $27,000 $70,000 $20,000 $12.000 $129,00 Quarter 81,000 210,000 80,000 48.000 $419,000 Other expenses Total 4. Cash budget: January February March Quarter Cash balance, beginning Add cash collections Total cash available Less disbursements: Inventory purchases 47,000 - 324,000 $540,000 $540,00 371,000 - $570,500 $695,800 $ 47,000 1,504,000 1.551.000 264,500 $360,000 $300,000 924,500 137,000 - $153,000 $129,000 - $1,700 $84,500 45,000 446,500 $514,700 $513,500 419,000 85,200 45,000 1,474,700 Selling and administrative expenses Equipment purchases Cash dividends Total disbursements Excess (deficiency) of cash Financing: Borrowings Repayments Interest Total financing Cash balance, ending (75,500)* $55,800 $106,000 _76,300 106,000 $106,000 ($3,130) $109,180 106,000 (106,000) (03.180) ($3,180) 73,120 106,000 30,500 $ 5. Income statement: Income Statement For the Quarter Ended March 31 Sales $1,504,000 Cost of goods sold: $950,000 Beginning inventory (Given) $60,000 Add purchases (Part 2) $945,000 Goods available for sale Ending inventory (Part 2) $45,000 Gross margin Selling and administrative expenses: Salaries and wages (Part 3) $81,000 Advertising (Part 3) Shipping (Part 3) Depreciation ($14,000 x 3) Other expenses (Part 3) Net operating income Interest expense (Part 4) Net income $210,000 $80,000 $42,000 $48.000 $377,000 $3,180 $175,820 6. Balance sheet: Balance Sheet March 31 Assets Current assets: Cash (Part 4) Accounts receivable (80% x $400,000) Inventory (Part 2) Total current assets Buildings and equipment, net ($370,000+ $86,200 - $42,000) Total assets $320,000 $945,000 $414,200 5852,320 Liabilities and Equity Current liabilities: Accounts payable (Part 2: 50% x $225,000) Stockholders' equity: $112,500 Capital stock Retained earnings* Total liabilities and equity THE CALCULATION FOR RETAINED EARNINGS PROVIDED BELOW IS USED TO CALCULATE ENDING RETAINED EARNINGS. ENDING RETAINED EARNINGS IS INCORPORATED INTO THE BALANCE SHEET *Retained earnings, beginning Add net income Total Deduct cash dividends Retained earnings, ending