Page of 7 0 - ZOOM + Brittney's Boutique Table 1: Performance and Budget Data Numbers Explanations Initial Investment: $ 25,000.00 Brittney's initial owner investment of her own money into the business Security Deposits: $ 3,000.00 The lease deposit paid for in November when the 36-month lease agreement was signed at the beginning of November 1,200.00 Utility deposit for electricity 500.00 Utility deposit for water and gas Asset Information: $ 15,000.00 10 years Amount paid for furniture and fixtures and useful life in years), respectively 3,000.00 3 years Cost of computer and useful life (in years), respectively 12 months Number of months in a year. The computer was financed interest-free over 12 months with 12 even monthly payments 35,000.00 15 years | Amount spent on leasehold improvements and the useful life in years), respectively Central National Bank loan information and borrowing terms:" $ 55,000.00 Amount borrowed from Central National Bank 1,102.09 The total monthly loan payment to Central National Bank 7.5% 0.63% Yearly interest rate and monthly interest rate, respectively 60 Number of periods in years and months, respectively Monthly Sales and Cash Collections: $ 45,000.00 $ 90,000.00 $ 60,000.00 The gross sales received from customers for the months of November, December, and January, respectively 35% The percentage of customers who pay using cash 65% The percentage of customers who pay using credit cards 2.0% The processing fee Brittney is charged on all credit card transactions. The processing fee is a variable cost. 45% 55% The percentage of credit sales collected in the month of sale and in the month following the sale, respectively Cost of Goods Sold, Inventory Purchases, and Inventory Payments Information: 48% The percentage of monthly gross sales that is Cost of Goods Sold. Cost of Goods Sold is a variable cost. 75% Desired ending inventory for the current month is this percentage (i.e., 75%) of following month's Cost of Goods Sold 100% Sales for February are expected to be the same as January February sales are 100% * January Sales. 65% Percentage of inventory purchases that are paid for in the month of the purchase 35% Percentage of inventory purchases that are paid for in the month following the purchase Page 2 of 7 - ZOOM + Other Operating Payments: 4,200.00 1,000.00 2,500.00 2,000.00 5,000.00 700.00 Monthly rent payment for the 36-month lease agreement. Rent is due on the first day of each month. Amount of supplies purchased and used in cach of the first 3 months of operations (paid for at the time of purchase) 1,500.00 Amount spent on advertising in each of the first 3 months of operations: November, December and January, respectively Amount of employee wages paid per month The amount of the monthly insurance payment 50.00 200.00 100.00 300.00 The amount of the monthly utilities payments for: water and garbage ($200/month), natural gas ($50/month), and electricity ($300/month), respectively The approximate monthly amount paid for miscellaneous utilities and other items each month Notes: *Notice that you will need to prepare a Payment Schedule (amortization schedule) that divides the total monthly loan payment amount into the part that is interest expense and the other part that is a payment of some of the loan principal. Notice that all of the "Other Operating Payments" represent fixed costs. Requirement 1: Contribution margin format income statement Contribution margin format income statement November December January Quarter - Page 07 10 - zoom + 1 kl. Requirement 2: cost-volume-profit analyses -profit analyses fety calculation 2b. Margin of safety = current sales - break-even sales Requirement 3a: Schedule of cash collections 3a. Cash collections November December January Quarter Page of 7 0 - ZOOM + Brittney's Boutique Table 1: Performance and Budget Data Numbers Explanations Initial Investment: $ 25,000.00 Brittney's initial owner investment of her own money into the business Security Deposits: $ 3,000.00 The lease deposit paid for in November when the 36-month lease agreement was signed at the beginning of November 1,200.00 Utility deposit for electricity 500.00 Utility deposit for water and gas Asset Information: $ 15,000.00 10 years Amount paid for furniture and fixtures and useful life in years), respectively 3,000.00 3 years Cost of computer and useful life (in years), respectively 12 months Number of months in a year. The computer was financed interest-free over 12 months with 12 even monthly payments 35,000.00 15 years | Amount spent on leasehold improvements and the useful life in years), respectively Central National Bank loan information and borrowing terms:" $ 55,000.00 Amount borrowed from Central National Bank 1,102.09 The total monthly loan payment to Central National Bank 7.5% 0.63% Yearly interest rate and monthly interest rate, respectively 60 Number of periods in years and months, respectively Monthly Sales and Cash Collections: $ 45,000.00 $ 90,000.00 $ 60,000.00 The gross sales received from customers for the months of November, December, and January, respectively 35% The percentage of customers who pay using cash 65% The percentage of customers who pay using credit cards 2.0% The processing fee Brittney is charged on all credit card transactions. The processing fee is a variable cost. 45% 55% The percentage of credit sales collected in the month of sale and in the month following the sale, respectively Cost of Goods Sold, Inventory Purchases, and Inventory Payments Information: 48% The percentage of monthly gross sales that is Cost of Goods Sold. Cost of Goods Sold is a variable cost. 75% Desired ending inventory for the current month is this percentage (i.e., 75%) of following month's Cost of Goods Sold 100% Sales for February are expected to be the same as January February sales are 100% * January Sales. 65% Percentage of inventory purchases that are paid for in the month of the purchase 35% Percentage of inventory purchases that are paid for in the month following the purchase Page 2 of 7 - ZOOM + Other Operating Payments: 4,200.00 1,000.00 2,500.00 2,000.00 5,000.00 700.00 Monthly rent payment for the 36-month lease agreement. Rent is due on the first day of each month. Amount of supplies purchased and used in cach of the first 3 months of operations (paid for at the time of purchase) 1,500.00 Amount spent on advertising in each of the first 3 months of operations: November, December and January, respectively Amount of employee wages paid per month The amount of the monthly insurance payment 50.00 200.00 100.00 300.00 The amount of the monthly utilities payments for: water and garbage ($200/month), natural gas ($50/month), and electricity ($300/month), respectively The approximate monthly amount paid for miscellaneous utilities and other items each month Notes: *Notice that you will need to prepare a Payment Schedule (amortization schedule) that divides the total monthly loan payment amount into the part that is interest expense and the other part that is a payment of some of the loan principal. Notice that all of the "Other Operating Payments" represent fixed costs. Requirement 1: Contribution margin format income statement Contribution margin format income statement November December January Quarter - Page 07 10 - zoom + 1 kl. Requirement 2: cost-volume-profit analyses -profit analyses fety calculation 2b. Margin of safety = current sales - break-even sales Requirement 3a: Schedule of cash collections 3a. Cash collections November December January Quarter Page