Practice Budget: Preparing a master budget for a retail company with no beginning account balances Uncle Company company that consistor camping equipment. The company is considering og anner.2017. The company resident formed a planning Committee presudget for eft three months of Required October sales are stated to be $120.000 percent will be cash and 6 Der will be there to increase at the rate of percent per month. Prepare a ses bote 1. The connects tot 100 paid by credit sales in the month owing the sale. Presedile of cash receipts. The cost of goods sold is to percent of sales. The company desires to maintain a minimum ending inventory equal to 10 percent of the next month's cost of goods ud ting er at December is expected to be $12.000 assume that has retro ventory purchases budget d. The company Days 70 percent of the month of use and the remaining 30 percent in the following budget for to purch Sco Sweet S. De fe 600 1200 * The capital expenditures budgets Unde will spend $164,000 on October 1 for store flutures, which are expected to have a $20,000 salvage value and three-year (36-month) settes Use this information in de buget. vities and sales commerhy are in the enses are paid in the month which they are not repare a cash payments budget foring and we 9. Undie brand, ots of 10 and them on the last day of the month. The company basis adors on the last day of the month pays Interest of terhaday of the month Temant the compania 52.000 Prepare a proforma commentform Prepare a promote hehe Prera proforma statement of the cute (Note: All computations are rounded to the nearest whole dollar.) A&B Sales Budget Sales Oct. Nov. Dec. Pro Forma Cash sales Sales on account Total budgeted sales Schedule of Cash Receipts Current cash sales Plus collections from AR Total collections CAD Inventory Purchases Budget Pro Forma Oct. Nov. Dec. Data Budgeted cost of goods sold Plus desired ending inventory Inventory needed Less beginning inventory Required purchases (on Acct.) Schedule of Cash Payments Budget for inventory Purchases Pmt of current month's accts. . Pmt for prior month's accts. pay. Total budgeted pmts for inventory Pro Forma Data Dec. E&F Selling and Administrative Expense Budget Oct. Nov. Salary expense Sales commissions 5% of sales Supplies expense 2% of sales Utilities Depreciation on store Jequipment Rent Miscellaneous Total S&A expenses before Interest Schedule of Cash Payments for S&A Expenses Salary expense 100% prior month's sales comm. Supplies expense 100% prior month's utilities Depreciation on store Jequipment Rent Miscellaneous Total payments for S&A exp. Depreciation is a noncash charge. Cash Budget Oct. Nov. Dec. Pro Forma Data Beginning cash balance Add cash receipts Cash available Less payments For inventory purchases For S&A expenses Purchase of store fixtures Interest expense Total budgeted payments Payments minus receipts Surplus (Shortage) Financing Activity Borrowing (repayment) Ending cash bal. Uncle Company Pro Forma Income Statement For the Quarter Ended December 31, 2017 Sales Revenue Cost of Goods Sold Gross Margin S&A Expenses Operating Income Interest Expense Net Income I Uncle Company Pro Forma Balance Sheet As of the Quarter Ended December 31, 2017 Assets Cash Accounts Receivable Inventory Store Equipment Accumulated As of the Quarter Ended December 31, 2017 Assets Cash Accounts Receivable Inventory Store Equipment Accumulated Depreciation Book Value of Equipment Total Assets Liabilities Accounts Payable Utilities Payable Sales Commissions Payable Line of Credit Liability Equity Retained Earnings Total Liabilities and Equity Uncle Company Pro Forma Statement of Cash Flows For the Ouarter Ended December 31, 2017 Cash Flow From Operating Activities Cash receipts from Customers Cash payments for Inventory Cash payments for S&A Expenses Cash payments for Interest Expense Net cash flow from Operating Activities Cash Flow From Investing Activities Cash Outflow to Purchase Fixtures Cash Flow From Financing Activities Net Inflow from Line of Credit Net Change in Cash Plus Beginning Cash Balance Ending Cash Balance Practice Budget: Preparing a master budget for a retail company with no beginning account balances Uncle Company company that consistor camping equipment. The company is considering og anner.2017. The company resident formed a planning Committee presudget for eft three months of Required October sales are stated to be $120.000 percent will be cash and 6 Der will be there to increase at the rate of percent per month. Prepare a ses bote 1. The connects tot 100 paid by credit sales in the month owing the sale. Presedile of cash receipts. The cost of goods sold is to percent of sales. The company desires to maintain a minimum ending inventory equal to 10 percent of the next month's cost of goods ud ting er at December is expected to be $12.000 assume that has retro ventory purchases budget d. The company Days 70 percent of the month of use and the remaining 30 percent in the following budget for to purch Sco Sweet S. De fe 600 1200 * The capital expenditures budgets Unde will spend $164,000 on October 1 for store flutures, which are expected to have a $20,000 salvage value and three-year (36-month) settes Use this information in de buget. vities and sales commerhy are in the enses are paid in the month which they are not repare a cash payments budget foring and we 9. Undie brand, ots of 10 and them on the last day of the month. The company basis adors on the last day of the month pays Interest of terhaday of the month Temant the compania 52.000 Prepare a proforma commentform Prepare a promote hehe Prera proforma statement of the cute (Note: All computations are rounded to the nearest whole dollar.) A&B Sales Budget Sales Oct. Nov. Dec. Pro Forma Cash sales Sales on account Total budgeted sales Schedule of Cash Receipts Current cash sales Plus collections from AR Total collections CAD Inventory Purchases Budget Pro Forma Oct. Nov. Dec. Data Budgeted cost of goods sold Plus desired ending inventory Inventory needed Less beginning inventory Required purchases (on Acct.) Schedule of Cash Payments Budget for inventory Purchases Pmt of current month's accts. . Pmt for prior month's accts. pay. Total budgeted pmts for inventory Pro Forma Data Dec. E&F Selling and Administrative Expense Budget Oct. Nov. Salary expense Sales commissions 5% of sales Supplies expense 2% of sales Utilities Depreciation on store Jequipment Rent Miscellaneous Total S&A expenses before Interest Schedule of Cash Payments for S&A Expenses Salary expense 100% prior month's sales comm. Supplies expense 100% prior month's utilities Depreciation on store Jequipment Rent Miscellaneous Total payments for S&A exp. Depreciation is a noncash charge. Cash Budget Oct. Nov. Dec. Pro Forma Data Beginning cash balance Add cash receipts Cash available Less payments For inventory purchases For S&A expenses Purchase of store fixtures Interest expense Total budgeted payments Payments minus receipts Surplus (Shortage) Financing Activity Borrowing (repayment) Ending cash bal. Uncle Company Pro Forma Income Statement For the Quarter Ended December 31, 2017 Sales Revenue Cost of Goods Sold Gross Margin S&A Expenses Operating Income Interest Expense Net Income I Uncle Company Pro Forma Balance Sheet As of the Quarter Ended December 31, 2017 Assets Cash Accounts Receivable Inventory Store Equipment Accumulated As of the Quarter Ended December 31, 2017 Assets Cash Accounts Receivable Inventory Store Equipment Accumulated Depreciation Book Value of Equipment Total Assets Liabilities Accounts Payable Utilities Payable Sales Commissions Payable Line of Credit Liability Equity Retained Earnings Total Liabilities and Equity Uncle Company Pro Forma Statement of Cash Flows For the Ouarter Ended December 31, 2017 Cash Flow From Operating Activities Cash receipts from Customers Cash payments for Inventory Cash payments for S&A Expenses Cash payments for Interest Expense Net cash flow from Operating Activities Cash Flow From Investing Activities Cash Outflow to Purchase Fixtures Cash Flow From Financing Activities Net Inflow from Line of Credit Net Change in Cash Plus Beginning Cash Balance Ending Cash Balance