need it very soon
11. SmartArt CLEMELE Your friend, Catherine Ross, owns Knockoffs Unlimited, a nationwide distributor of low-cost imitation designer necklaces. She has contacted you for some assistance because the accounting clerk, George Forrest, recently won a sum of money and decided to resign immediately. Catherine knows that you are completing an accounting course at Cape Breton University and hopes you can prepare the cash budget for the upcoming quarter (April, May and June, 2021). Catherine has provided you with the budgets completed by George. She has also provided you with additional information that will assist with the completion of the cash budget. Completed Budgets (April, May, June, and Quarter Total, 2021) Sales Budget April May June Quarter Budgeted sales in units 70,000 60,000 $5,000 185.000 Unit sales price 10 10 10 Sales in dollars $700.000 $600.000 $550.000 $1.850.000 10 May June S $ Cash Colletions Budget February sales March sales April sales May sales June sales Total April 31,000 308,000 140,000 S44,000 490.000 120,000 70,000 420.000 110.000 600.000 Ovarfer 31,000 352,000 700.000 540,000 110,000 1733,000 479,000 654,000 Merchandise Purchases Budget Sales in units storage systems) Add: Budgeted ending inventory Total needs Less: Beginning finished goods inventory Required unit purchases Unit cost Required Purchases April May June 70,000 60.000 55.000 24,000 22.000 20.000 94.000 82,000 75.000 28,000 24.000 22.000 66.000 58.000 33.000 S 4S 4. $ 4 S 264,000 $ 232.000 S212.000 Quarter 185,000 20.000 205.000 28,000 177.000 S 708.000 $ Cash Disbursements. Inventory Purchases March purchases April purchases May purchases June purchases April May June Quarter 108,000 $ 108.000 132,000 132.000 264.000 116.000 116.000 372,000 106,000 106.000 240.000 S 248,000 S 222 000S 710,000 Continued on the next page 3 Page SmartArt DO 10 12 16 20 22 24 26 28 ADDITIONAL INFORMATION: + Cash balance, April 1, 2021 $8,000+ + The company's monthly selling and administrative expenses are provided below. All selling and administrative expenses are paid in the month incurred, with the exception of depreciation and insurance. Insurance is paid on an annual basis in December of each year. - Variable expenses: Commissions- + 5% of sales - Fixed expenses: Advertising Rent- Wages & salaries + Utilities Insurance Depreciation + + $19,000+ 20,500 125,000+ 9,000+ 3,000 18,000+ - - The company plans to purchase new equipment for cash in May ($18,000) and June (545,000). The company wants to have an ending cash balance each month of $40,000. All borrowing is done at the beginning of the month. The interest on outstanding loans-is 1% per month. Loan repayments and interest is only paid at the end of the month when there is sufficient cash to do so. (The company does not borrow to pay interest or repay loans.)+ REQUIRED: a. Prepare a cash budget in good fom Show the budget by month and in tota] b. What will be reported on the budgeted balance sheet at June 30.2021 for accounts receivable? Supporting calculations required c.- What will be reported on the budgeted balance sheet at June 30, 2021 for merchandise purchases payable? Supporting calculations required. You may use the template on the next page for the cash budget if you wish 2014 AI 3 cm 21 Col 205/434
