QUESTIONS NEEDED TO BE ANSWERED ARE:

1) HOW DID THE CASH BALANCE BEGINNING CAME??? PLEASE JUST WRITE THE FORMULA FOR THAT ONE??????

2)DO THE FIFO CALCULATION????????

3)A written Summary Report ????????

(ONLY THESE THREE ARE NEEDED. ALL OTHERS ARE CALCULATED. ONCE AGAIN HOW DID CASH BALANCE BEGINNING CAME FORMULA, THE FIFO CALCULATION AND THE WRITTEN SUMMARY REPORT.

THANK YOU THANK YOU THANK YOU

THERE is no missing information. That's all the information provided.

FIRST I WILL PASTE THE QUESTIONS. ALL OF IT ARE DONE EXCEPT THE 3 ONES THAT I MENTIONED ABOVE. I NEED ANSWERS FOR JUST THOSE 3.

Imagine, Inc. Sales Budget For the 6 months ending June 2020 Nov '19 Dec '19 Jan '20 Feb '20 Mar '20 Apr '20 May '20 Jun '20 6 mos total Budged unit sales 11,250 11,600 10,000 11,400 12,000 15,600 18,000 22,000 39,000 Selling price per unit 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 11.25 $ 11.25 KALEA Total Sales 1 12.500 1 16.000 S 100.000 $ 114.000 $ 120.000 S 156.000 202.500 $ 247.500 940.000 12 Cash Sales % 30% 13 Credit Sales % 70% 14 15 Cash Sales $ 33,750 $ 34,800 $ 30,000 34,200 $ 36,000 $ 46,800 $ 60,750 $ 74,250 282,000 16 Credit Sales 78,750 81,200 70,000 79.800 84.000 109,200 141.750 173.250 658.000 Total Sales $ 1 12.500 $ 1 16.000 S 100,000 $ 114.000 $ 120.000 $ 156,000 $ 202.500 $ 247.500 940,000 18 19 20 Current month A/R Collections 30% 21 1 month prior A/R Collections 50% 22 2 months prior A/R Collections 16% 23 Uncollectible 4% 24 25 Imagine, Inc. 26 Cash Collections 27 For the 6 months ending June 2020 28 29 Jan '20 Feb '20 Mar '20 Apr '20 May '20 Jun '20 6 mos total 30 Current month cash Sales 30,000 34,200 36,000 46,800 60,750 74,250 $ 282,000 31 Current month A/R Collections 21,000 23,940 25.200 32.760 42,525 51,975 197.400 32 1 month prior A/R Collections 40,600 35,000 39,900 42,000 54,600 70,875 282,975 33 2 months prior A/R Collections 12,600 12,992 11,200 12,768 13,440 17.472 $ 80.472 34 Total cash collections $ 104 200 $ 106.132 $ 112 300 $ 134.328 $ 171315 $ 214.572 $ 842.847 35 36 Bad Debt Expense 3,150 3,248 2,800 3,192 3,360 4,368 $ 20, 118 37 38 Desired ending inventory % 40%40 Imagine, Inc. 41 Purchase Budget 42 For the 6 months ending June 2020 43 44 Nov '19 Dec '19 Jan '20 Feb '20 Mar '20 Apr '20 May '20 Jun '20 6 mos total 45 Budged unit sales 11,250 11,600 10,000 11,400 12,000 15,600 18,000 22,000 89,000 46 Add desired ending inventory 4,640 4,000 4,560 4,800 6,240 7,200 8,800 7,200 38,800 47 Total needs 15,890 15,600 14,560 16,200 18,240 22,800 26,800 29,200 127,800 48 Less Beginning Inventory 4,640 4,000 4,560 4,800 6,240 7,200 8,800 35,600 49 Required Purchases 10,960 10,560 11,640 13.440 16,560 19,600 20.400 S 92.200 50 51 Cost per unit 4.00 $ 4.00 $ 4.00 $ 4.20 'S 4.20 $ 4.41 $ 4.41 52 Purchases 43.840 $ 42.240 $ 46.560 S 56.448 S 69.552 $ 86.436 $ 89.964 S 391,200 53 54 % Paid in Month of Purchase 40% 55 % Paid in Month after Purchase 60% 56 57 58 Imagine, Inc. 59 Schedule of Budgeted Cash Disbursements for Merchandise Purchases 60 For the 6 months ending June 2020 61 62 Jan '20 Feb '20 Mar '20 Apr '20 May '20 Jun '20 6 mos total 63 Cash purchases $ 16,896 18,624 $ 22,579 $ 27,821 $ 34,574 $ 35,986 156,480 64 1 month prior A/P Collections 26,304 25,344 27,936 33,869 41,731 51,862 207,046 65 Cash disbursements for merchandise purch $ 43.200 S 43.968 $ 50.515 $ 61.690 S 76.306 S 87.847 $ 363,526 66 67 68 Fixed Operating expenses: Variable Operating Expenses: 69 Salaries and Wages 3,000 Sales Commissions, % of Revenue 7% 70 Rent 8,000 Other Variable Cash Expenses, % of Revenue 6% 71 Supplies Expense 2,000 72 Other - Overhead 24,000 73 Other - Depreciation 24,000Imagine, Inc. Operating Expense Budget For the 6 months ending June 2020 Jan 20 Feb 20 Mar '20 Apr '20 May '20 Jun '20 6 mos total 80 Salaries and Wages $ 3.000 $ 3,000 $ 3.000 $ 3,000 $ 3.000 $ 3,000 $ 18,000 Sales Commissions 7,000 7.980 B.400 10,920 14,175 17,325 65,800 Rent 8.000 8.000 B.000 8.000 8.000 8.000 48,000 83 Other Variable Cash Expenses 6.000 6.840 7.200 9.360 12,150 14,850 56,400 84 Supplies Expense 2,000 2.000 2.000 2.000 2.000 2,000 12,000 Other - Overhead 24,000 24,000 24,000 24,000 24,000 24,000 144,000 86 Other - Depreciation 24,000 24,000 24,000 24,000 24,000 24,000 144,000 87 Bad Debt Expense 3,150 3.248 2.800 3.192 3.360 4.368 20,118 8.8 Total operating expenses 77,150 79,068 79,400 84,472 90,685 97,543 $ 508,318 89 Depreciation and noncash items 24,000 24,000 24,000 24,000 24,000 24,000 $ 144,000 90 Bad Debt Expense 3,150 3.248 2.800 3,192 3,360 4,368 20,118 w ? 91 Cash disbursements for operating expenses $ 50,000$ 51,820 $ 52,600 $ 57,280 $ 63,325 $ 69.175 $ 344,200 92 93 Equipment payment - January 50,000 94 Equipment payment - February 30,000 95 Dividends - March 12,000 96 Minimum Monthly Cash Budget 15,000 97 98 Imagine, Inc. HAY 99 Cash Budget 100 For the 6 months ending June 2020 101 102 Jan 20 Feb 20 Mar '20 Apr 20 May 20 Jun '20 mac total 103 Cash balance, beginning $ 15,000 $ 15,000 15,344 $ 15,529 $ 15,887 $ 15,572 92,332 104 Add collections from customers 104.200 106,132 12.300 134.328 171,315 214.572 3 842.847 105 Total cash available 119,200 121,132 127,644 149,857 187,202 230,144 $ 935,179 106 Less disbursements: 107 Cash disbursements for merchandise purch 43,200 43,968 50,515 61,690 76,306 87,847 $ 363,526 108 Cash disbursements for operating expenses 50,000 51,820 52,600 57,280 63,325 69, 175 344,200 109 Equipment purchases 50,000 30,000 80,000 110 Dividends 12,000 12,000 111 Total cash disbursements 143,200 125,788 115,115 118,970 139,631 157,022 799,726 112 Excess of receipts over disbursements 24,000 (4,656 12,529 30.887 47,571 73, 122 135,453 113 Financing: 114 Borrowing-note 39,000 20,000 3.000 62,000 115 Repayments-note (15.000) (32.000) (15,000) $ (62,000) 116 Total financing 39,000 20,000 3,000 15,000) (32,000 (15,000) $ 117 Cash balance, ending $ 15,000 $ 15,344 $ 15.529 15.887 $ 15.571 $ 58,122 $ 135,453 11820 Imagine, Inc. 121 Budgeted Income Statement 122 For the 6 months ending June 2020 123 124 Jan '20 Feb '20 Mar '20 Apr '20 May '20 Jun '20 Total 125 Sales, net $ 100,000 $ 114,000 $ 120,000 $ 156,000 $ 202,500 $ 247,500 $ 140,000 126 Cost of goods sold: 40,000 45,600 49,440 65,520 77,858 97,020 $ 375,438 27 Gross margin $ 60,000 $ 68,400 $ 70,560 $ 90,480 $ 124,642 $ 150,480 $ 564,562 128 Total operating expenses 77,150 79,068 79,400 84,472 90,685 97,543 $ 508,318 129 Net Income $ (17, 150) $ 10,668) $ (8,840) $ 6,008 $ 33,957 $ 52,937 $ 56,244 130 131 Imagine, Inc. 132 Budgeted Balance Sheet 133 30/06/2020 134 135 Assets 136 Current Assets: 37 Cash $ 58,122 138 Accounts receivable 121,275 139 Supplies 2,000 140 Merchandise Inventory 31,752 $ 213, 149 141 Plant and Equipment: 142 Buildings and Equipment 1, 130,000 43 Accumulated Depreciation 550,475 $ 579,525 144 Total assets 792,674 145 146 Liabilities and Equity 47 Accounts payable $ 53,978 48 Capital stock 200,000 149 Retained earnings 367,045 567,045 150 Total liabilities and equity $ 621,023FIFO Calculation COGS - Ending Beg Beg Inventory Purchases - Ending - Units Purchases COGS Units Inventory Inventory Units Inventory - Units Jan 16,000 4,000 Feb 18.240 4.560 Mar 19,200 4,800 Apr 62,208 6,240 10 May 30.240 7,200 11 Jun 93.516 8,800 12 Jul 7,200 13 14 15 16 17 18 19 20 28 29 30 31 32 33 34 35 36 37 38Required: prepare a comprehensive 6-month budget, including supporting schedules and a report for the period January 1, 2020 to June 30, 2020 for Imagine, Inc (a fictional company). This project must include: 1. Sales Forecast and Budget 2. Cash Receipts budget 3. Purchase budget 4. Cash Purchases Disbursements budget 5. Operating Expense budget 6. Summary Cash budget 7. Budgeted Income Statement D CO Budgeted Balance Sheet 9. A written Summary Report INFORMATION FOR IMAGINE, INC. BUDGET PROJECT 1. Imagine, Inc. is a company that re-sells one product, a particularly comfortable lawn chair. An overseas contractor makes the product exclusively for Imagine, so Imagine has no manufacturing-related costs. 2. As of 11/19, each lawn chair costs Imagine $4 per unit. Imagine sells each chair for $10 per unit. 3. The estimated sales (in units) are as follows: Year Month Sales (in units) 2019 November 11,250 2019 December 11.600 2020 January 10,000 2020 February 11.400 2020 March 12,000 2020 April 15,600 2020 May 18,000 2020 June 22,000 2020 July 18,000 4. Per an existing contract, the cost of each chair is scheduled to increase by 5% on March 1, 2020. In addition, because of increasing costs of plastic webbing, the cost is anticipated to increase by an additional 5% on May 1, 2020. To offset these increases, the company plans to raise the sales price to $11.25 per unit beginning May 1, 2020. The sales forecast (i.e., estimated sales in units) takes this price increase into account.5. Thirty percent of any month's sales are for cash, and the remaining 70% are on credit. Thirty percent of the credit sales are collected in the month of sale, 50% are collected in the following month, and 16% are collected in the second month after the sale. The remaining receivables are deemed uncollectible. Bad debts are written off in the month the debt is deemed uncollectible (e.g. if the sale is made in January and is not collected by the end of March, it is written off in March.) No accrual for estimated bad debts is made in the month of sale. 6. The firm's policy regarding inventory is to stock (i.e. have in ending inventory) 40% of the forecasted demand in units (i.e., estimated sales) for the next month. Imagine uses the first- in, first-out (FIFO) method in accounting for inventories. 7. Forty percent of the inventory purchases are paid for in the month of purchase and the remaining 60% are paid in the following month (i.e. all of the previous month's Accounts Payable are paid off by the end of any month.) 8. Per a prior contract, a cash payment of $50,000 for equipment previously purchased is due in January. Another payment of $30,000 is due in February. Depreciation on the equipment previously purchased is included in the overhead cost detailed below (see item 9). Also, dividends of $12,000 are to be paid in March. 9. Monthly operating expenses consist of the following (if these are cash expenses, they are paid when incurred): Salaries and Wages $3,000 Sales Commissions 7% of sales revenue Rent $8,000 Other Variable Cash Expenses 6% of sales revenue Supplies Expense: See note $2,000 Other: See note $48,000 Note: Other general and administrative overhead is expected to be $48,000 per month. Of this amount, $24,000 represents depreciation and other non-cash expenses. The company maintains on hand one month's worth of supplies. 10. The company must maintain a minimum cash balance of $15,000. Borrowing can make up shortfalls. For simplicity, assume that the bank will only lend (and accept repayments) in $1,000 increments. Ignore interest on the loan in your calculations, but minimize the amount borrowed and pay off any loans as soon as possible.Note: Other general and administrative overhead is expected to be $48,000 per month. Of this amount, $24,000 represents depreciation and other non-cash expenses. The company maintains on hand one month's worth of supplies. 10. The company must maintain a minimum cash balance of $15,000. Borrowing can make up shortfalls. For simplicity, assume that the bank will only lend (and accept repayments) in $1,000 increments. Ignore interest on the loan in your calculations, but minimize the amount borrowed and pay off any loans as soon as possible. 11. Cash on hand as of December 31, 2019 is expected to be $15,000. In addition, there will be no notes payable as of this date. 12. See below the other Balance Sheet accounts with their expected balances as of December 31, 2019: Supplies 2,000 Property, Plant and Equipment 1,050,000 Accumulated Depreciation 526,475 Common Stock. 200,000 Retained Earnings 322,811