Required information
[The following information applies to the questions displayed below.]
Zachary Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, year 1. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks.
Required a. October sales are estimated to be $300,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 20 percent per month. Prepare a sales budget. b. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. c. The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending inventory equal to 10 percent of the next month's cost of goods sold. However, ending inventory of December is expected to be $13.800. Assume that all purchases are made on account. Prepare an inventory purchases budget. d. The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the following month. Prepare a cash payments budget for inventory purchases. e. Budgeted selling and administrative expenses per month follow. Salary expense (fixed) Sales commissions Supplies expense Utilities (fixed) Depreciation on store fixtures (fixed) Rent (fixed) Miscellaneous (fixed) $19.HOD 4% of Sales 2% of Sales $ 3,200 $ 5.ee $ 6,600 $ 3,00 *The capital expenditures budget indicates that Zachary will spend $246,800 on October 1 for store fixtures, which are expected to have a $38,000 selvage value and a three-year (36-month) useful life. Use this information to prepares selling and administrative expenses budget. f. Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in the month in which they are incurred. Prepare a cash payments budget for selling and administrative expenses. 9. Zochery borrows funds, in increments of $1000and repoys them on the last day of the month. Repayments may be made in any amount available. The company also pays its vendors on the last day of the month. It pays interest of 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $30.000 cash cushion. Prepare a cash budget. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required F Required G Zachary borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be made in any amount available. The company also pays its vendors on the last day of the month. It pays interest of 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $30,000 cash cushion. Prepare a cash budget. (Any repayments/shortage which should be indicated with a minus sign.) Show less Cash Budget October November December Section 1: Cash Receipts Beginning cash balance IS Os 180,720 IS 474 520 Add: Cash receipts 120.000 324.000 388.800 Total Cash available 120.000 504.720 863320 Section 2: Cash Payments Interest expense 6.000 x 7200 x 8.640 For inventory purchases 3.200 x 3.200 For selling and administrative expenses 19.200 19.800 x 19.800 x Purchase of store fixtures 246.800 0 0 Financing activity x 0 O Total budgeted disbursements 272.600 30.200 31,640 Section 3: Financing Activities Surplus (shortage) (152,600) 474,520 831,680 Barrowing repayment) 333,320 0 0 x Ending cash balance S 100.720 IS 474.520 $ 831.680 OOOO DO OOO Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required F Required G October sales are estimated to be $300,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 20 percent per month. Prepare a sales budget. October November December Sales Budget Cash sales $ 120.000 S 144,000 $ 172.800 Sales on account 180.000 216.000 259,200 Total budgeted sales S 300.000 $ 360,000 $ 432.000 Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required F Required G The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts. October November December S $ Schedule of Cash Receipts Current cash sales Plus collections from A/R Total collections 120,000 0 120,000 144,000 $ 180,000 324,000 $ 172.800 216,000 388,800 S S Required A Required B Required Required D Required E Required F Required G The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending inventory equal to 10 percent of the next month's cost of goods sold. However, ending inventory of December is expected to be $13,800. Assume that all purchases are made on account. Prepare an inventory purchases budget. October November December Inventory Purchases Budget Budgeted cost of goods sold S 180.000 $ 216.000 S 259,200 Plus: Desired ending inventory 21,600 25,920 13.800 Inventory needed 201,600 241,920 273,000 Less: Beginning inventory 0 21,600 25.920 Required purchases (on account) S 201,600 S 220.320 S 247,080 Required A Required B Required c Required D Required E Required F Required G The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the following month. Prepare a cash payments budget for inventory purchases. (Round your final answers to the nearest whole dollar amounts.) December October November Schedule of Cash Payments Budget for Inventory Purchases Payment of current month's accounts payable S 141,120 s 154.224 Payment for prior month's accounts payable 60,480 Total budgeted payment for inventory 141, 120 S 214,704 S 172.956 66,096 0 S S 239,052 Required A Required B Required c Required D Required E Required F Required G Prepare a selling and administrative expenses budget. December S October November Selling and Administrative Expense Budget Salary expense $ 19,800 $ 19.800 Sales commissions 12,000 14,400 Supplies expense 6.000 7,200 Utilities 3,200 3.200 Depreciation on store fixtures 5,800 5.800 Rent 6,600 6,600 Miscellaneous 3,000 3,000 Total S&A expenses S 56,400 S 60,000 19.800 17,280 8,640 3,200 5.800 6,600 3,000 64,320 S Required A Required B Required Required D Required E Required F Required G 0 Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in the month in whic they are incurred. Prepare a cash payments budget for selling and administrative expenses. October November December Schedule of Cash Payments for S&A Expenses Salary expense $ 19,800 $ 19.800 S 19,800 Sales commissions 12.000 14.400 Supplies expense 6.000 7,200 8,640 Utilities 0 3,200 3.200 Depreciation on store fixtures 0 0 Rent 6,600 6,600 6,600 Miscellaneous 3,000 3.000 3,000 Total payments for S&A expenses S 35.400 S 51.800 S 55,640 0 Required Information [The following information applies to the questions disployed below.] Zachary Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1. year 1. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks. h. Prepare a pro forma income statement for the quarter. 1. Prepare a pro forma balance sheet at the end of the quarter. J. Prepare a pro forma statement of cash flows for the quarter. Complete this question by entering your answers in the tabs below. Required H Required I Required) Prepare a pro forma income statement for the quarter. ZACHARY COMPANY Pro Forma Income Statement For the Quarter Ended December 31. year 1 0 0 S 0 Required Required I > Required Information [The following information applies to the questions displayed below.] Zachary Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1. year 1. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks. h. Prepare a pro forma income statement for the quarter. 1. Prepare a pro forma balance sheet at the end of the quarter. J. Prepare a pro forma statement of cash flows for the quarter. Complete this question by entering your answers in the tabs below. Required Required 1 Required Prepare a pro forma balance sheet at the end of the quarter. (Amounts to be deducted should be indicated by a minus sign.) ZACHARY COMPANY Pro Forma Balance Sheet December 31. year 1 Asseto 0 Total assets S 0 Llabilities Equity Total liabilities and equity S Required Information [The following information applies to the questions displayed below.] Zochery Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1. year 1. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks. h. Prepare a pro forme income statement for the quarter. 1. Prepare a pro forma balance sheet at the end of the quarter. J. Prepare a pro forme statement of cash flows for the quarter. Complete this question by entering your answers in the tabs below. Required Required 1 Required) Prepare a pro forma statement of cash flows for the quarter. (Amounts to be deducted should be indicated by a minus sign.) ZACHARY COMPANY Pro Forma Statement of Cash Flowe For the Quarter Ended December 31. year 1 Cash flows from operating activities S 0 Net cash flows from operating activities Cash flows from investing activities Cash flow from financing activities S
