Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Prepare the below: a ) Income Budget b ) Cash Budget c ) Balance Sheet Forecast Based on this information: - Cost of goods sold
Prepare the below:
a Income Budget
b Cash Budget
c Balance Sheet Forecast
Based on this information:
Cost of goods sold COGS is
Personnel costs and other operating expenses amount to euros, and they will be paid during the budget period.
Equipment is purchased and paid for euros.
Taxacceptable depreciations are euros building depreciations euros and equipment depreciations euros
Interest expenses amount to euros and loans will be reduced by euros.
Taxes are paid at of the result before taxes.
Dividend is paid at euros.
The ending inventory is the same as the starting inventory.
Sales receivables remain at of sales.
Purchase liabilities remain at of purchases.
At the end of the budget period, there must be at least euros in cash.
Other shortterm debts remain at the same level.
If cash payments are not sufficient to cover cash expenses, the difference is financed through a bank loan.
Fill these tables:
Income Budget:
Sales
Variable Costs
Gross Profit
Fixed Costs
Personnel
Depreciation
Interest
Profit Before Taxes
Taxes
Net Profit
Cash Budget:
Cash Receipts
Beginning Cash
Cash Sales
Payments from Credit Sales
Total Cash Receipts
Cash Disbursements
Cash Purchases
Payments for Credit Purchases
Personnel
Equipment
Interest on Loans
Loan Repayments
Taxes
Dividends
Total Cash Disbursements
Ending Cash
Balance Sheet Forecast: Balance Sheet at the Beginning, from previous period:
Assets:
Buildings:
Machinery and Equipment:
Inventory:
Shortterm Receivables:
Cash and Bank Receivables:
Total:
Liabilities and Equity:
Share Capital:
Retained Earnings:
Bank Loans:
Shortterm Payables:
Other Shortterm Liabilities:
Total:
Forecasted Balance Sheet: Fill this use information from previous balance sheet as base if needed
Assets:
Buildings
Machinery and Equipment
Inventory
Shortterm Receivables
Cash and Bank Receivables
Total
Liabilities and Equity:
Share Capital
Retained Earnings
Bank Loans
Shortterm Payables
Other Shortterm Liabilities
Total
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