Specific instructions: Study the required resources of the module and particularly the illustrative exercise I6.1 to perform this exercise. Read carefully the financial and operational data of the JKL Corporation offered below and use them to prepare the budget for: Collections for sales for the quarter (10 points) Purchases for the quarter (10 points) Disbursements on purchases for the quarter (10 points) Disbursements of administrative and sales expenses for the quarter (10 points) Financial and operational data of Corporacin JKL The JKL Corporation is dedicated to the business of buying and selling and is designing its master budget for the next quarter of operations from April to June 20xx. The data collected and necessary to work with such a budget are the following: A. Certain data on the Status Sheet (Balance Sheet) as of March 31, 20xx:

B. The expected and projected sales for several months of 20xx are: March (real) $ 80,000 April $ 64,000 May $ 63,000 June $ 77,000 July $ 55,000

C. Other important data: 1- Monthly sales are 20% in cash and 80% on credit. Credit sales of the previous month are charged in full in the following month (therefore, what is in accounts receivable at the end of March is 80% of March sales). 2- The gross profit margin generated by the corporation in its sales is 33%. 3- The final inventory of each month is equal to 25% of the cost of sales budgeted for next month. 4- 40% of monthly merchandise purchases are paid in the month of purchase and the remainder in the month following the purchase. 5- The expected monthly expenses are: salaries, $ 8,500; advertising, $ 4,100 per month and remaining expenses (except depreciation) represent 8% of sales. It assumes that these expenses are paid every month (nothing is due at the end of the month). 6- The depreciation expense is $ 10,000 for the quarter and includes the portion that corresponds to the assets acquired during the period. 7- Equipment was purchased in cash: $ 26,000 in April and $ 16,000 in May 20xx. 8- Management wishes to maintain a minimum cash balance at the end of each month of $ 10,000. 9- When the company needs money, it can borrow from a local bank in increments of $ 1,000 at the beginning of each month up to a loan limit of $ 20,000. The interest rate that the bank charges on these loans is 1% per month and interest is paid next month (we assume that it is not compound interest and that each loan is made at the end of the month). The company paid dividends $ 2,900 in June

After studying the required resources of the module and performing Task 6.1, use the data and information of the JKL Corporation, and the results you obtained in task 6.1 and prepare the cash budget for the quarter ended in June. Use the following table as a model:

april may june total Initial Cash Balance Cash receipts Cash available Less disbursements: Purchases Administrative and administrative expenses sales Purchase of equipment Dividends Total disbursements Excess (deficiency) of cash Financing: Loan Loan payments Interests Financing Final effective balance

1- Status of proforma situation as of June 30, 20xx

2- Proforma income and expense statement for the quarter ended June 30, 20xx

3-Statement of proforma cash flows for the quarter ended June 30, 20xx.

Then, complete the following table of financial analysis rates. Show the calculation to get each rate

Financial rates (ratios) June 20xx Calculation (2 points) 1- Current ratio 2- Acid reason (Acid-test ratio) 3- Rotation of accounts receivable (receivable turn-over accounts) 4- Average collection period 5- Inventory rotation (inventory turn-over) 6- Average sales period 7- Debt / Assets 8- Debt / Shareholder Capital (debt-equity ratio) 9- Interest coverage (timesinterest earned ratio) 10- Gross margin percentage 11- Net margin 12- Return on investment (ROI: return on investment)

The whole exercise is just one, so it's connected you must have a minimun balance of $8,000 in cash. If you need a loan it must be in increments of $1,000 at the beginning of each mounth up to a maximum of $20,000. The interest rate is 1% monthly at 2 months and the loan and interest are paid next month.

$ 20,000 Cash Accounts receivable 64,000 Inventory 15,400 Buildings and equipment (net depreciation) 225,000 23,400 Debts to pay Long term debts 90,000 Common Shares - Capital 150,000 Retained earnings 61,000 $ 324,400 Totals S 324,400 $ 20,000 Cash Accounts receivable 64,000 Inventory 15,400 Buildings and equipment (net depreciation) 225,000 23,400 Debts to pay Long term debts 90,000 Common Shares - Capital 150,000 Retained earnings 61,000 $ 324,400 Totals S 324,400