Static Budget Amount 4,152 519,000 10 100% 14 221,000 77,850 298,850 220,150 15 16 15% 58% 42% Sales in Units Sales Less: Variable Costs: Cost of Goods Sold Sales Commissions Total Variable Costs Contribution Margin Less: Fixed Costs: Advertising Property Taxes Rent Salaries & Wages Total Fixed Costs Net Operating Income 21,000 10,000 45,000 104,000 180,000 40,150 Required: Prepare a cash budget (Chapter 10) for the first year of operation in Canmore by quarter and in total. Show clearly on your budget the quarter(s) in which borrowing will be needed and the quarter(s) in which repayments can be made, as requested by the company's bank. R 33 34 35 36 Quarter 23 29% 27% $150,510 $140,130 Year Summary 100% $519,000 17% Percent of Sales Estimated Sales 27% $140,130 $88,230 38 CASH BALANCE, Beginning 59,000 39 Collections from customers: Cash Sales Credit Sales CASH AVAILABLE 43 Less: Cash Payments Merchandise purchases (COGS) Sales Commissions 46 Advertising Property Taxes Rent Salaries & Wages 50 Equipment Purchase 51 Income tax Installment 52 Total Disbursements 208,020 607,280 H36 ... D E 1 53 Can Excess (Deniciency) -97,1/11 54 Financing (Note 1) 55 Borrow 128,000 Repayment of Principal (show | as negative) -18,000 57 Net Financing 110,000 58 Cash Balance, Ending 25,135 59 -97,171 34,553 34,113 20,135 60 Note 1: Financing Calculations 61 Cash excess (Deficiency) 62 Minimum cash balance 63 Amount to borrow (repay) Borrowing (Repayments) 64 Rounded to increment of $1,000 Static Budget Amount 4,152 519,000 10 100% 14 221,000 77,850 298,850 220,150 15 16 15% 58% 42% Sales in Units Sales Less: Variable Costs: Cost of Goods Sold Sales Commissions Total Variable Costs Contribution Margin Less: Fixed Costs: Advertising Property Taxes Rent Salaries & Wages Total Fixed Costs Net Operating Income 21,000 10,000 45,000 104,000 180,000 40,150 Required: Prepare a cash budget (Chapter 10) for the first year of operation in Canmore by quarter and in total. Show clearly on your budget the quarter(s) in which borrowing will be needed and the quarter(s) in which repayments can be made, as requested by the company's bank. R 33 34 35 36 Quarter 23 29% 27% $150,510 $140,130 Year Summary 100% $519,000 17% Percent of Sales Estimated Sales 27% $140,130 $88,230 38 CASH BALANCE, Beginning 59,000 39 Collections from customers: Cash Sales Credit Sales CASH AVAILABLE 43 Less: Cash Payments Merchandise purchases (COGS) Sales Commissions 46 Advertising Property Taxes Rent Salaries & Wages 50 Equipment Purchase 51 Income tax Installment 52 Total Disbursements 208,020 607,280 H36 ... D E 1 53 Can Excess (Deniciency) -97,1/11 54 Financing (Note 1) 55 Borrow 128,000 Repayment of Principal (show | as negative) -18,000 57 Net Financing 110,000 58 Cash Balance, Ending 25,135 59 -97,171 34,553 34,113 20,135 60 Note 1: Financing Calculations 61 Cash excess (Deficiency) 62 Minimum cash balance 63 Amount to borrow (repay) Borrowing (Repayments) 64 Rounded to increment of $1,000
