Seeking tutor help to complete course budget. See attached for details.

COURSE PROJECT 1 INSTRUCTIONS You have just been contracted as a budget consultant by LBJ Company, a distributor of bracelets to various retail outlets across the country. The company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. You have decided to prepare a cash budget for the upcoming fourth quarter in order to show management the benefits that can be gained from proper cash planning. You have worked with accounting and other areas to gather the information assembled below. The company sells many styles of bracelets, but all are sold for the same $10 price. Actual sales of bracelets for the last three months and budgeted sales for the next six months follow: July (actual) August (actual) September (actual) October (budget) November (budget) December (budget) January (budget) February (budget) March (budget) 20,000 26,000 40,000 70,000 110,000 60,000 30,000 28,000 25,000 The concentration of sales in the fourth quarter is due to the Christmas holiday. Sufficient inventory should be on hand at the end of each month to supply 40% of the bracelets sold in the following month. Suppliers are paid $4 for each bracelet. Fifty-percent of a month's purchases is paid for in the month of purchase; the other 50% is paid for in the following month. All sales are on credit with no discounts. The company has found, however, that only 20% of a month's sales are collected in the month of sale. 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 negligible. Monthly operating expenses for the company are given below: Variable expenses: Sales commissions 4% of sales Fixed expenses: Advertising $220,000 Rent Salaries $20,000 $110,000 Utilities Insurance Depreciation $10,000 $5,000 $18,000 Insurance is paid on an annual basis, in January of each year. The company plans to purchase $22,000 in new equipment during October and $50,000 in new equipment during November; both purchases will be for cash. The company declares dividends of $20,000 each quarter, payable in the first month of the following quarter. Other relevant data is given below: Cash balance as of September 30 Inventory balance as of September 30 $74,000 $112,000 Merchandise purchases for September $200,000 The company maintains a minimum cash balance of at least $50,000 at the end of each month. 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 the exact amount needed 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 will pay the bank all of the accrued interest on the loan and as much of the loan as possible while still retaining at least $50,000 in cash. Required: Prepare a cash budget for the three-month period ending December 31. Include the following detailed budgets: 1. a. A sales budget, by month and in total. b. A schedule of expected cash collections from sales, by month and in total. c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total. d. A schedule of expected cash disbursements for merchandise purchases, by month and in total. 2. 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 $50,000. PROJECT 1 - Excel Template Student Name: SALES BUDGET: October November December Quarter Budgeted unit sales Selling price per unit Total sales SCHEDULE OF EXPECTED CASH COLLECTIONS: October November December Quarter August sales September sales October sales November sales December sales Total cash collections MERCHANDISE PURCHASES BUDGET: October November December Quarter Budgeted unit sales Add desired ending inventory Total needs Less beginning inventory Required purchases Cost of purchases @ $4 per unit BUDGETED CASH DISBURSEMENTS FOR MERCHANDISE PURCHASES: October November December Quarter September purchases October purchases November purchases December purchases Total cash payments LBJ COMPANY CASH BUDGET FOR THE 3 MONTHS ENDING DECEMBER 31 October November December Quarter Cash balance Add collections from customers Total cash available Less disbursements Merchandise purchases Advertising Rent Salaries Commissions Utilities Equipment purchases Dividends paid Total disbursements Excess (deficiency) of receipts over disbursements Financing: Borrowings Repayments Interest Total financing Cash balance, ending PROJECT 1 - Excel Template Student Name: Bob Quinney SALES BUDGET: December 60,000 $ 10 $ 600,000 $ $ Quarter 240,000 10 2,400,000 SCHEDULE OF EXPECTED CASH COLLECTIONS: October November December August sales $ 26,000 $ $ September sales $ 280,000 $ 40,000 $ October sales $ 140,000 $ 490,000 $ 70,000 November sales $ $ 220,000 $ 770,000 December sales $ $ $ 120,000 Total cash collections $ 446,000 $ 750,000 $ 960,000 $ $ $ $ $ $ Quarter 26,000 320,000 700,000 990,000 120,000 2,156,000 December 60,000 12,000 72,000 24,000 48,000 $ 192,000 $ Quarter 240,000 12,000 252,000 28,000 224,000 896,000 BUDGETED CASH DISBURSEMENTS FOR MERCHANDISE PURCHASES: October November December September purchases $ 100,000 $ October purchases $ 172,000 $ 172,000 $ November purchases $ $ 180,000 $ 180,000 December purchases $ $ $ 96,000 Total cash payments $ 272,000 $ 352,000 $ 276,000 $ $ $ $ $ Quarter 100,000 344,000 360,000 96,000 900,000 Budgeted unit sales Selling price per unit Total sales $ $ October 70,000 10 700,000 MERCHANDISE PURCHASES BUDGET: October Budgeted unit sales 70,000 Add desired ending inventory 44,000 Total needs 114,000 Less beginning inventory 28,000 Required purchases 86,000 Cost of purchases @ $4 per unit $ 344,000 November 110,000 $ 10 $ 1,100,000 November 110,000 24,000 134,000 44,000 90,000 $ 360,000 LBJ COMPANY CASH BUDGET FOR THE 3 MONTHS ENDING DECEMBER 31 October November December 74,000 50,000 50,000 Cash balance 446,000 750,000 960,000 Add collections from customers Total cash available 520,000 800,000 1,010,000 Less disbursements Merchandise purchases Advertising Rent Salaries Commissions Utilities Equipment purchases Dividends paid Total disbursements Excess (deficiency) of receipts over disbursements Financing: Borrowings Repayments Interest Total financing Cash balance, ending $ $ $ $ $ $ $ $ $ 272,000 $ 220,000 $ 20,000 $ 110,000 $ 28,000 $ 10,000 $ 22,000 $ 20,000 $ 702,000 $ Quarter 74,000 2,156,000 2,230,000 352,000 $ 220,000 $ 20,000 $ 110,000 $ 44,000 $ 10,000 $ 50,000 $ $ 806,000 $ 276,000 220,000 20,000 110,000 24,000 10,000 660,000 $ $ $ $ $ $ $ $ $ 900,000 660,000 60,000 330,000 96,000 30,000 72,000 20,000 2,168,000 (182,000) (6,000) 350,000 62,000 232,000 232,000 56,000 56,000 288,000 8,080 (296,080) 288,000 288,000 8,080 (8,080) 50,000 50,000 53,920 53,920 PROJECT 1 - Excel Template Student Name: Bob Quinney SALES BUDGET: December 60,000 $ 10 $ 600,000 $ $ Quarter 240,000 10 2,400,000 SCHEDULE OF EXPECTED CASH COLLECTIONS: October November December August sales $ 26,000 $ $ September sales $ 280,000 $ 40,000 $ October sales $ 140,000 $ 490,000 $ 70,000 November sales $ $ 220,000 $ 770,000 December sales $ $ $ 120,000 Total cash collections $ 446,000 $ 750,000 $ 960,000 $ $ $ $ $ $ Quarter 26,000 320,000 700,000 990,000 120,000 2,156,000 December 60,000 12,000 72,000 24,000 48,000 $ 192,000 $ Quarter 240,000 12,000 252,000 28,000 224,000 896,000 BUDGETED CASH DISBURSEMENTS FOR MERCHANDISE PURCHASES: October November December September purchases $ 100,000 $ October purchases $ 172,000 $ 172,000 $ November purchases $ $ 180,000 $ 180,000 December purchases $ $ $ 96,000 Total cash payments $ 272,000 $ 352,000 $ 276,000 $ $ $ $ $ Quarter 100,000 344,000 360,000 96,000 900,000 Budgeted unit sales Selling price per unit Total sales $ $ October 70,000 10 700,000 MERCHANDISE PURCHASES BUDGET: October Budgeted unit sales 70,000 Add desired ending inventory 44,000 Total needs 114,000 Less beginning inventory 28,000 Required purchases 86,000 Cost of purchases @ $4 per unit $ 344,000 November 110,000 $ 10 $ 1,100,000 November 110,000 24,000 134,000 44,000 90,000 $ 360,000 LBJ COMPANY CASH BUDGET FOR THE 3 MONTHS ENDING DECEMBER 31 October November December 74,000 50,000 50,000 Cash balance 446,000 750,000 960,000 Add collections from customers Total cash available 520,000 800,000 1,010,000 Less disbursements Merchandise purchases Advertising Rent Salaries Commissions Utilities Equipment purchases Dividends paid Total disbursements Excess (deficiency) of receipts over disbursements Financing: Borrowings Repayments Interest Total financing Cash balance, ending $ $ $ $ $ $ $ $ $ 272,000 $ 220,000 $ 20,000 $ 110,000 $ 28,000 $ 10,000 $ 22,000 $ 20,000 $ 702,000 $ Quarter 74,000 2,156,000 2,230,000 352,000 $ 220,000 $ 20,000 $ 110,000 $ 44,000 $ 10,000 $ 50,000 $ $ 806,000 $ 276,000 220,000 20,000 110,000 24,000 10,000 660,000 $ $ $ $ $ $ $ $ $ 900,000 660,000 60,000 330,000 96,000 30,000 72,000 20,000 2,168,000 (182,000) (6,000) 350,000 62,000 232,000 232,000 56,000 56,000 288,000 8,080 (296,080) 288,000 288,000 8,080 (8,080) 50,000 50,000 53,920 53,920