Question Common Status ACC325 - Managerial Accounting Case Study Assignment Due Date 25 November 2021 Weighting 15% ELECTRONIC SUBMISSION "normal for candy Lite peste to received due date SASE SCENARIO You have just been hired as a new management trainee by Bahrain Company, a distributor of earrings to various real outiets located in shopping malls across the country in the past, the company has done very little in the way of budgeting and at certain times of the years experienced a shortage of cash Since you are wol trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below The company sells many styles of earrings, but all are sold for the same price-520 per par Actual sales of caring for the last three months and budgeted sales for the next six months follow in pairs of earrings January (actual) 23,200 June (budget) February (actual 29,200 July budget) 33200 March (actual 43.200 August (budget) 35,200 April budget) 3.200 September (budget May (budget) 103.200 The concentration of sales before and during May is due to Mother's Day, Sutlin invericily should be on and at the and of each month to supply 40% of the carrings sold in the following month Suppliers are paid $6.60 for a pair of emings. One-tat of a montis purchases is paid for in the month of purchase the other half is paid for in the following month. Alles are on credit Only 20of a month sales are collected in the month of sal. An additional 70% is collected in the following month and the remaining 10% is collected in the second month following sale. Bad debts have been ne cible 53.200 Rent wton Completion fofowing saleBad debts have been negible Monthly operating expenses for the company are given below Variable: Sales commissions of als Faxed Advertising 5360,000 $34.000 Salaries SI 000 Utilities $15.000 Insurance 4600 Depreciation $30.000 Insurance is paid on an annual basis in November of each year The company and to purchase 824 000 in new equipment during May and $56.000 in new equipment during June, both purchases will be for cash The company declares dividends of $27.000 each Garter payable in the first month of the following user The company's balance shots of March 31 is given below Assets Cat 50.000 Accounts receivable (558.400 February sales: 001 200 March 749.000 Loremory 187.75 Prepaid insurance 20.000 Property 1000 Totalt $2.131.300 Land Sider Accounts payable $110.000 37.000 Divisade Question Comption LDS Accounts payable Dividends payable Common stock Rotring Total liabilities and stockholders equity $ 110,000 27,000 1.120.000 368,368 $ 2,131,368 The company maintains a minimum cath balance of $66.000. All borrowing is done at the beginning of a month any repayments are made at the end of a month The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible in increments of S1000) while still retaining at 566,000 in cath Required: You are required to propere a master budoet in excel file for me three-month pornod ending June 30. Include the folowing detailed 1. A sales budget, by month and in total 2. A schedule of expected cash collections, by month and in total 1 A merchandise purchases budget in units and in dollars. Show the budget by month and in total 4. A schedule of expected cash disbursements for merchandise purchases by month and in total 3. A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of 500,000 6. A budgeted income statement for the three-mont period ending June 30 Use the contribution approach A budged balance shoot as of June 30 in preparing your answers in the excel file you should generally design the excel to include the following shots Bolgellaunch page content page) . Begining balance budget Question Common Status ACC325 - Managerial Accounting Case Study Assignment Due Date 25 November 2021 Weighting 15% ELECTRONIC SUBMISSION "normal for candy Lite peste to received due date SASE SCENARIO You have just been hired as a new management trainee by Bahrain Company, a distributor of earrings to various real outiets located in shopping malls across the country in the past, the company has done very little in the way of budgeting and at certain times of the years experienced a shortage of cash Since you are wol trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below The company sells many styles of earrings, but all are sold for the same price-520 per par Actual sales of caring for the last three months and budgeted sales for the next six months follow in pairs of earrings January (actual) 23,200 June (budget) February (actual 29,200 July budget) 33200 March (actual 43.200 August (budget) 35,200 April budget) 3.200 September (budget May (budget) 103.200 The concentration of sales before and during May is due to Mother's Day, Sutlin invericily should be on and at the and of each month to supply 40% of the carrings sold in the following month Suppliers are paid $6.60 for a pair of emings. One-tat of a montis purchases is paid for in the month of purchase the other half is paid for in the following month. Alles are on credit Only 20of a month sales are collected in the month of sal. An additional 70% is collected in the following month and the remaining 10% is collected in the second month following sale. Bad debts have been ne cible 53.200 Rent wton Completion fofowing saleBad debts have been negible Monthly operating expenses for the company are given below Variable: Sales commissions of als Faxed Advertising 5360,000 $34.000 Salaries SI 000 Utilities $15.000 Insurance 4600 Depreciation $30.000 Insurance is paid on an annual basis in November of each year The company and to purchase 824 000 in new equipment during May and $56.000 in new equipment during June, both purchases will be for cash The company declares dividends of $27.000 each Garter payable in the first month of the following user The company's balance shots of March 31 is given below Assets Cat 50.000 Accounts receivable (558.400 February sales: 001 200 March 749.000 Loremory 187.75 Prepaid insurance 20.000 Property 1000 Totalt $2.131.300 Land Sider Accounts payable $110.000 37.000 Divisade Question Comption LDS Accounts payable Dividends payable Common stock Rotring Total liabilities and stockholders equity $ 110,000 27,000 1.120.000 368,368 $ 2,131,368 The company maintains a minimum cath balance of $66.000. All borrowing is done at the beginning of a month any repayments are made at the end of a month The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible in increments of S1000) while still retaining at 566,000 in cath Required: You are required to propere a master budoet in excel file for me three-month pornod ending June 30. Include the folowing detailed 1. A sales budget, by month and in total 2. A schedule of expected cash collections, by month and in total 1 A merchandise purchases budget in units and in dollars. Show the budget by month and in total 4. A schedule of expected cash disbursements for merchandise purchases by month and in total 3. A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of 500,000 6. A budgeted income statement for the three-mont period ending June 30 Use the contribution approach A budged balance shoot as of June 30 in preparing your answers in the excel file you should generally design the excel to include the following shots Bolgellaunch page content page) . Begining balance budget