Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help Prepare a master budget plan with the given information please The following information is available for the Barkery, a gourmet pet food and
please help
Prepare a master budget plan with the given information please
The following information is available for the Barkery, a gourmet pet food and toys store: 1. Balance sheet information as of September 30, 2019: $ 21,000 53,775 20,000 119,075 Current Assets Cash Accounts Receivable Inventory Equipment (net) Current Liabilities Accounts Payable Interest Payable Notes Payable Common stock Retained earnings 2,450 4,125 110,000 35,000 62,275 2. Recent and anticipated sales: August September October November December $80,000 $70,000 $100,000 $120,000 $140,000 3. Credit sales: Sales are 75% for credit and 25% cash. Assume that the credit accounts are collected 8% within the month of sale, 81% within the month following the sale, 10% within the second month following the sale and 1% is uncollectible and written off immediately as a bad debt. 4. Cost of goods sold is 35% of sales. We pay for 90% of the purchases in the month of purchase and the remaining 10% of the purchases in the month following the purchase. 5. Inventory is equal to $20,000 at all times. 6. Operating costs: Salaries and wages average 30% of monthly revenues, other monthly operating costs are $4,750. Assume that these costs are paid out each month. Depreciation is $600 per month. 7. The note payable is due on June 30, 2021. Accrue monthly interest at 5% per annum that will be paid with the note payable balance on June 30, 2021. 8. Assume that a minimum cash balance of $15.000 must be maintained. Assume also that all borrowing is effective at the beginning of the month and all repayments are made The following information is available for the Barkery, a gourmet pet food and toys store: 1. Balance sheet information as of September 30, 2019: $ 21,000 53,775 20,000 119,075 Current Assets Cash Accounts Receivable Inventory Equipment (net) Current Liabilities Accounts Payable Interest Payable Notes Payable Common stock Retained earnings 2,450 4,125 110,000 35,000 62,275 2. Recent and anticipated sales: August September October November December $80,000 $70,000 $100,000 $120,000 $140,000 3. Credit sales: Sales are 75% for credit and 25% cash. Assume that the credit accounts are collected 8% within the month of sale, 81% within the month following the sale, 10% within the second month following the sale and 1% is uncollectible and written off immediately as a bad debt. 4. Cost of goods sold is 35% of sales. We pay for 90% of the purchases in the month of purchase and the remaining 10% of the purchases in the month following the purchase. 5. Inventory is equal to $20,000 at all times. 6. Operating costs: Salaries and wages average 30% of monthly revenues, other monthly operating costs are $4,750. Assume that these costs are paid out each month. Depreciation is $600 per month. 7. The note payable is due on June 30, 2021. Accrue monthly interest at 5% per annum that will be paid with the note payable balance on June 30, 2021. 8. Assume that a minimum cash balance of $15.000 must be maintained. Assume also that all borrowing is effective at the beginning of the month and all repayments are made Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started