Paula's Pet Shop Operating Budget and Financial Budget.

Paula's Pet Shop Pro Forma Income Statement For Quarter Ended June 30, 2021 Sales Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expense Depreciation Expense \begin{tabular}{|r|r|} \hline & Vertical Analysis \\ \hline $308,080 & 100% \\ \hline 169,444 & 55% \\ \hline$138,636 & 45% \\ \hline$49,293 & \\ \hline$15,000 & 16% \\ \hline$33,889 & 5% \\ \hline$98,182 & 32% \\ \hline$40,454 & 13% \\ \hline \hline \end{tabular} Sales Budget Other Operating Expenses Total Expenses Net Income Cost of Goods Sold Budget Paula's Pet Shop Pro Forma Income Statement For Quarter Ended June 30, 2021 Sales Cost of Goods Sold Cash Sales (40\%) Gross Profit Credit Sales (60\%) Operating Expenses: Total Sales Salaries Expense March Sales =$100,000 Depreciation Expense April Sales expected to increase by 1\% Other Operating Expenses May Sales expected to increase by 1.5\% Total Expenses June Sales expected to increase by 2% Net Income Cost of Goods Sold Desired Ending Inventory Inventory Required Ending Inventory Purchases Required Cost of Goods Sold 55% of Sales Desired Ending Inventory =5,000+70% of Cost of Goods Sold for Current Month Ending Inventory for March =$32,000 Operating Expense Budget Salaries Expense Other Operating Exp Depreciation Exp Total Operating Expenses Salaries Expense 16% of Sales Depreciation Expense =$5,000 per month Other Operating Expenses =11% of Sales Collections Budget Cash Sales Credit Sales Total Collections Collections From Credit Sales expected to be 60% of previous month's Sales March Credit Sales =$55,000 Budgeted Cash Payments For Inventory Purposes 45\% Current Month 55\% Last Month Total Disbursements Mar 2021 Pur=50,000 Payments for Operating Expenses Salaries Expense Other Operating Expenses Total Expenses Cash Budget Beginning Cash Balance Cash Collections Cash Available Cash Payments: Purchases of Inventory Operating Expenses Total Cash Payments Desired Ending Cash Balance Cash Excess or (Deficiency) Ending Cash Balance March Ending Cash Balance =60,000 Paula's Pet Shop Pro Forma Income Statement For Quarter Ended June 30, 2021 Sales Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expense Depreciation Expense \begin{tabular}{|r|r|} \hline & Vertical Analysis \\ \hline $308,080 & 100% \\ \hline 169,444 & 55% \\ \hline$138,636 & 45% \\ \hline$49,293 & \\ \hline$15,000 & 16% \\ \hline$33,889 & 5% \\ \hline$98,182 & 32% \\ \hline$40,454 & 13% \\ \hline \hline \end{tabular} Sales Budget Other Operating Expenses Total Expenses Net Income Cost of Goods Sold Budget Paula's Pet Shop Pro Forma Income Statement For Quarter Ended June 30, 2021 Sales Cost of Goods Sold Cash Sales (40\%) Gross Profit Credit Sales (60\%) Operating Expenses: Total Sales Salaries Expense March Sales =$100,000 Depreciation Expense April Sales expected to increase by 1\% Other Operating Expenses May Sales expected to increase by 1.5\% Total Expenses June Sales expected to increase by 2% Net Income Cost of Goods Sold Desired Ending Inventory Inventory Required Ending Inventory Purchases Required Cost of Goods Sold 55% of Sales Desired Ending Inventory =5,000+70% of Cost of Goods Sold for Current Month Ending Inventory for March =$32,000 Operating Expense Budget Salaries Expense Other Operating Exp Depreciation Exp Total Operating Expenses Salaries Expense 16% of Sales Depreciation Expense =$5,000 per month Other Operating Expenses =11% of Sales Collections Budget Cash Sales Credit Sales Total Collections Collections From Credit Sales expected to be 60% of previous month's Sales March Credit Sales =$55,000 Budgeted Cash Payments For Inventory Purposes 45\% Current Month 55\% Last Month Total Disbursements Mar 2021 Pur=50,000 Payments for Operating Expenses Salaries Expense Other Operating Expenses Total Expenses Cash Budget Beginning Cash Balance Cash Collections Cash Available Cash Payments: Purchases of Inventory Operating Expenses Total Cash Payments Desired Ending Cash Balance Cash Excess or (Deficiency) Ending Cash Balance March Ending Cash Balance =60,000