PRACTICE EXERCISES

THIS IS ALL INFORMATION I HAVE.

Using MS Excel, and the information provided below forCorona Company, Master budget for each of the 3 months ended June 30th, 2021 (April, May, & June); include the following component budgets (show supporting calculations as needed and round amounts to the nearest dollar):

Master budget for 3 month period ending June 30th.Include the following detailed budgets:

1. Asales budgetby month and in total (Showing both budgeted unit sales & dollar sales).
2. Aschedule of expected cash collectionsfrom sales, by month and in total.
3. Amerchandise purchases budgetin units and in dollars. Show the budget by month and in total.
4. Aschedule of expected cash disbursementsfor merchandise purchases, by month and in total.
5. Monthlyselling and administrative expense
6. Acash budget. Show the budget by month and in total.
7. Abudgeted income statementfor the three-month period ending June 30th.
8. Abudgeted balance sheetas of June 30th.

You must use cell references wherever possible when you are building your spreadsheets. This includes using them in your formulas as well.Do not type computational results in the cells.

You have just been hired as a management trainee by Corona Company, a nationwide distributor of a designer's silk ties. The company has an exclusive franchise on the distribution of the ties, and sales have grown so rapidly over the last few years that it has become necessary to add new members to the management team.You have been given responsibility for all planning and budgeting.Your first assignment is to make a master budget for the next 3 months, starting April 1^st.You are anxious to make a favorable impression on the president and have assembled the information below.

The company desires a minimum ending cash balance each month of $10,000.The ties are sold to retailers for $8 each.Recent and forecasted sales in units are as follows:

The large buildup in sales before and during June is due to Father's Day.Ending inventories are supposed to equal 90% of the next month's sales in units.The ties cost the company $5 each. Purchases are paid for as follows: 50% in the month of purchases and the remaining 50% in the following month.

All sales are on credit, with no discount, and payable within 15 days.The company has found, however, that only 25% of a month's sales are collected by month-end.An additional 50% is collected in the following month, and the remaining 25% is collected in the second month following sale.Bad debts have been negligible.The company's month selling and administrative expenses are given below:

All selling and administrative expenses are paid during the month, in cash, with the exception of depreciation and insurance expired.Land will be purchased during May for $25,000 cash.

The company declares dividends of $12,000 each quarter, payable in the first month of the following quarter.The company's balance sheet at March 31 is given below:

Assets Cash 14,000 Accounts Receivable ($48,000 February Sales; $168,000 March Sales) 216,000 Inventory (31,500 units) 157,500 Prepaid Insurance 14,400 Fixed Assets, Net of Depreciation 172,700 Total Assets 574,600 Liabilities & Stockholders' Equity Accounts Payable $ 85,750 Dividends Payable 12,000 Capital Stock 300,000 Retained Earnings 176,850 Total Liabilities & Stockholders' Equity $ 574,600