still retaining at least $10,000 in cash Required: Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets 1 1. 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 Q MPREHENSIVE PROBLEM Xeel [LO2- CC5, 7, 12; LO3- CC13, 14] CHECK FIGURE (2) (3) June ending cash balance: $10,730, Net income: $151,880 You have just been hired as a management trainee by Cravat Sales Company, a nationwide distributor of a designer's silk ties. The company has an exclusive franchise on the distribution of the ties, and sales have grown so rapidly over the last few years that it has become necessary to add new members to the management team You have been given responsibility for all planning and budgeting. Your first assignment is prepare a master budget for the next three months, starting April 1. You are anxious to make a favourable impression on the president and have assembled the information below The company desires a minimum ending cash balance each month of $10,000. The ties are sold to retailers for $8 each. UJUMUILU We Thlormation below. The company desires a minimum ending cash balance each month of $10,000. The ties are sold to retailers for $8 each. Recent and forecasted sales in units are as follows: January (actual) 20,000 February (actual) 24,000 March (actual) 28.000 April 35,000 May 45.000 June 60,000 July 40.000 Type here to search O BI MHE Reader - Goo... 1:3 ^ ( ENG May June 45,000 July 60,000 August 40.000 September 36,000 32.000 The large buildup in sales before and during June is due to Father's Day Ending inventories are supposed to equal 90% of the next month's sales in units. The lies cost the company $5 each Purchases are paid for as follows: 50% in the month of purchase and the remaining 50% in the following month Page 335 All sales are on credit with no discount and payable within 15 days. The company has found, however that only 25% of a month's sales are collected by month-end. An additional 50% are collected in the following month, and the remaining 25% are collected in the second month following sale Bad debts have been negligible. Type here to search still retaining at least $10,000 in cash Required: Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets 1 1. 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 Q MPREHENSIVE PROBLEM Xeel [LO2- CC5, 7, 12; LO3- CC13, 14] CHECK FIGURE (2) (3) June ending cash balance: $10,730, Net income: $151,880 You have just been hired as a management trainee by Cravat Sales Company, a nationwide distributor of a designer's silk ties. The company has an exclusive franchise on the distribution of the ties, and sales have grown so rapidly over the last few years that it has become necessary to add new members to the management team You have been given responsibility for all planning and budgeting. Your first assignment is prepare a master budget for the next three months, starting April 1. You are anxious to make a favourable impression on the president and have assembled the information below The company desires a minimum ending cash balance each month of $10,000. The ties are sold to retailers for $8 each. UJUMUILU We Thlormation below. The company desires a minimum ending cash balance each month of $10,000. The ties are sold to retailers for $8 each. Recent and forecasted sales in units are as follows: January (actual) 20,000 February (actual) 24,000 March (actual) 28.000 April 35,000 May 45.000 June 60,000 July 40.000 Type here to search O BI MHE Reader - Goo... 1:3 ^ ( ENG May June 45,000 July 60,000 August 40.000 September 36,000 32.000 The large buildup in sales before and during June is due to Father's Day Ending inventories are supposed to equal 90% of the next month's sales in units. The lies cost the company $5 each Purchases are paid for as follows: 50% in the month of purchase and the remaining 50% in the following month Page 335 All sales are on credit with no discount and payable within 15 days. The company has found, however that only 25% of a month's sales are collected by month-end. An additional 50% are collected in the following month, and the remaining 25% are collected in the second month following sale Bad debts have been negligible. Type here to search