Need explanation on the exercise below on developing a master budget for a merchandising organization. Peyton department store prepares budgets quarterly. The following information is available for use in planning for the second quarter budgets for 2010 .

Rent Insurance Interest Total expenses Net income $ $ (f) Prepare a budgeted balance sheet as of June 30, 2010. Peyton Department Store Budgeted Balance Sheet June 30, 2010 Assets iabilities and Equity Cash $ Merchandise payable $ Accounts receivable Dividend payable Inventory Rent payable Prepaid insurance Loans payable Fixtures Interest payable Total assets $ Stockholders' equity Total liab. & equity $ Check Previous Save Answers Finis Copyright @ 2020 Cambridge Business Publishers , All Rights Reserved | Terms of Use | Privacy Policy. | Return Policy. | User Guide | Browser Support MacBook Air DII DD 20 F11 esc F6 F1 F4 F5 F7 F8 F9 F10 F3Developing a Master Budget for a Merchandising Organization Peyton Department Store prepares budgets quarterly. The following information is available for use in planning the second quarter budgets for 2010. PEYTON DEPARTMENT STORE Balance Sheet March 31, 2010 Assets Liabilities and Stockholders' Equity Cash $2,000 Accounts payable $26,000 Accounts receivable 25,000 Dividends payable 17,000 Inventory 30,000 Rent payable 1,000 Prepaid Insurance 2,000 Stockholders' equity 40,000 Fixtures 25,000 Total assets $84,000 Total liabilities and equity |$84,000 Actual and forecasted sales for selected months in 2010 are as follows: Month Sales Revenue January $80,000 February 50,000 March 40,000 April 50,000 May 60,000 June 70,000 July 90,000 August 80,000 Monthly operating expenses are as follows: Wages and salaries $27,000 Depreciation 100 Utilities 1,000 8510386_Solu....xIsx X 8510386_Solu....xIsx MacBook Air DII DD A 20 898 F7 F8 F9 F10 F 11 esc F1 F2 F3 F4 F5 F6 % & @ # DCash dividends of $17/000 are declared during the third month of each quarter and are paid during the first monthof the following quarter. Operating expiries, exempt inguranon, went, and depreciation are paid as incurred. Rent is paid during the following month. The prepaid insurance is for five more months. Cost of goods sold is equal to 50 percent of sales, Ending invintonel are sufficient for 120 percent of the next month's sales. Purchases during any given month are paid in full during the following month, All sales are on account, with 50 propent collected during the month of sale. 40 percent during the next month, and 10 percent during the month thereafter. Money can be borrowed and repaid in multiple of $1,000 at an interest rate of 12 percent per your. The company desires a minimum cash balance of $2:090 on the first of each month At the time the principal is repaid, interest h paid on the portion of principal that is repaid All borrowing is at the beginning of the month, and all repayment is at the end of the month. Money to never repaid at the end of the month it is borrowend. (bj Prepare a purchases budget for each month of the second quarter ending june 30. 1010. by Prepare a cash receipts schedule for each month of the second quarter ending june 30, 2010. Do not indude borrowing ic Prepare a coach disbursements schedule for each month of the proond quarter ending June 39, 1910. Do not inch de repayments of borrowingi MacBook Air NJ W E R O P Q T YDeveloping a Master Budget for a Merchandising Organization Peyton Department Store prepares budgets quarterly. The following information is available for use in planning the second quarter budgets for 2010. PEYTON DEPARTMENT STORE Balance Sheet March 31, 2010 Assets Liabilities and Stockholders' Equity Cash $2,000 Accounts payable $26,000 Accounts receivable 25,000 Dividends payable 17,000 Inventory 30,000 Rent payable 1,000 Prepaid Insurance 2,000 Stockholders' equity 40,000 Fixtures 25,000 Total assets $84,000 Total liabilities and equity $84,000 Actual and forecasted sales for selected months in 2010 are as follows: Month Sales Revenue January $80,000 February 50,000 March 40,000 April 50,000 May 60,000 June 70,000 July 90,000 August 80,000 Monthly operating expenses are as follows: Wages and salaries $27,000 Depreciation 100 Utilities 1,000 Rent 1 000 MacBook Air DII DD A F10 F11 20 988 F4 F5 F6 F7 esc F1 F2 F3 # $ % & 9 N W 4(d) Prepare a cash budget for each month of the second quarter ending june 30, 2010, Include budgeted borrow ings and repayments, Only use negative signs, If needed, for: excess receipts over disbursements, balance before borrowings and cash balances [beginning and endingk. Pryton Department More Monthly Cash budget Quarter Inding June 30, 2919 April Tacal Cash balance. beginning Disbursements Balance before borrowings Borrowing Loan repayment (e) Prepare an income statement for each month of the second quarter ending June 30, 2010. Only use negative signs to show net losses in income. Peyton Depanment More Judgeled Monthly Income Matements Quarter Inding Jose 10. 1010 April Cou of sales Grow profit Wages and salaries Depreciation inwarand inperrie MacBook Air 5 6 0