Subject : Management Accounting 
Cash....* Project Work on Master Budgeting The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: $8,000 Accounts receivable $20,000 Inventory ......... $36,000 Building and equipment, net $120.000 Accounts payable $21,750 Common stock $150,000 Retained earnings $12,250 a. The gross margin is 25% of sales, b. Actual and budgeted sales data: March (actual) $50,000 April $60,000 Depreciation is $900 per month (includes depreciation on new assets). g. Equipment costing $1.500 will be purchased for cash in April. h. Management would like to maintain a minimum cash balance of at least $4.000 at the end of cach month. The company has an agreement with a local bank that allows the company to borrow in increments of $1.000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 1% per month and for simplicity we will assume tha interest is not compounded. The company would, as far as it is able. repay the loan plus accumulated interest at the end of the quarter. Required: April May June Quarti Cash sales Credit sales Total collections $36,000 20.000 $56,000 2. Complete the following: Merchandise Purchases Budget May June Quarter April $45,000 43,2007 $54,000 Budgeted cost of goods sold Add desired ending inventory June purchases... Total disbursements 3. Complete the following cash budget: Cash Budget $47,850 April May June Quart Beginning cash balance Add cash collections Total cash available Less cash disbursements: For inventory $ 8.000 56,000 64,000 47.850 1. You should submit your work in an MS Excel file. You must use a formula and create a hyperlink for using data of one cell to other cells. If you just type the numbers without lising tt formula or creating the cell link, then there will be very low marks. 2. Total marks for this project Work is 20. 3. If you have any query on this Project Work, then ask it in the Discussion Forum. 4. If anyone does copy-paste from others, then there will be zero marks. Cash....* Project Work on Master Budgeting The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: $8,000 Accounts receivable $20,000 Inventory ......... $36,000 Building and equipment, net $120.000 Accounts payable $21,750 Common stock $150,000 Retained earnings $12,250 a. The gross margin is 25% of sales, b. Actual and budgeted sales data: March (actual) $50,000 April $60,000 Depreciation is $900 per month (includes depreciation on new assets). g. Equipment costing $1.500 will be purchased for cash in April. h. Management would like to maintain a minimum cash balance of at least $4.000 at the end of cach month. The company has an agreement with a local bank that allows the company to borrow in increments of $1.000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 1% per month and for simplicity we will assume tha interest is not compounded. The company would, as far as it is able. repay the loan plus accumulated interest at the end of the quarter. Required: April May June Quarti Cash sales Credit sales Total collections $36,000 20.000 $56,000 2. Complete the following: Merchandise Purchases Budget May June Quarter April $45,000 43,2007 $54,000 Budgeted cost of goods sold Add desired ending inventory June purchases... Total disbursements 3. Complete the following cash budget: Cash Budget $47,850 April May June Quart Beginning cash balance Add cash collections Total cash available Less cash disbursements: For inventory $ 8.000 56,000 64,000 47.850 1. You should submit your work in an MS Excel file. You must use a formula and create a hyperlink for using data of one cell to other cells. If you just type the numbers without lising tt formula or creating the cell link, then there will be very low marks. 2. Total marks for this project Work is 20. 3. If you have any query on this Project Work, then ask it in the Discussion Forum. 4. If anyone does copy-paste from others, then there will be zero marks
