The following data relate to the operations of Shilow Company, a wholesaie distributor of consumer goods: a. The gross margin is 25% of sales: b. Actual and budgeted salos data c. Sales are 60% for cash and 40% on credit Crodit sales are collected in the month following sale. The accounts roceivablo at March 31 are a result of March crodit sales. d Each monttis ending itiventory should caual Bo\% of the following monthis budgeted cost of goods sold e. One-half of a month's inventory purchases is paid for in the month of purchase the other half is paid for in the following month The accounts payable at March 31 are the result of March purchases of invontory 1. Monthly expenses are as follows commissions, 12% of sales, rent, $2,500 per month, other oxpenses (excluding depreciation), 6% of sales Assume that theso expenses are paid monthly Depreciation is $900 per month (includes depreciation on new assets) g. Equipment costing $1,500 wil be purchased for cash in April h. Management would like to mantan a manmum cash balance of at least $4,000 at the end of each 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 rato on these loans is 1% per month and for simplicily wo will assume that interest is not compounded The company would, as far as it is able, tepay the loan plus accumulated interest at the end of the quarter Using the data provided above, use the Excel Template provided to preparo the following budget schedules 1 Sales Budget (Merely enter the sales data provided) 2. Schedule of Expected Cash Collections 3. Merchandise Purchases Budget 4 Schedule of Expected Cash Disbursements - Merchandise Purchases 5 Schedule of Expected Cash Disbursements - Selling and Adrrinistrative Expenses 6. Cash Budget Please note that Excel formulas or functions should be used throughout the budget wherever poss ble, instead of entering numbers into each cell Managerial Accounting - Course Project Schedule of Fxnortarl Cach nilh Schedule of Expected Cash Disbursements - Selling \& dminiet...t.... Schedule of Expected Cash Disbursements - Selline \& Administrative The following data relate to the operations of Shilow Company, a wholesaie distributor of consumer goods: a. The gross margin is 25% of sales: b. Actual and budgeted salos data c. Sales are 60% for cash and 40% on credit Crodit sales are collected in the month following sale. The accounts roceivablo at March 31 are a result of March crodit sales. d Each monttis ending itiventory should caual Bo\% of the following monthis budgeted cost of goods sold e. One-half of a month's inventory purchases is paid for in the month of purchase the other half is paid for in the following month The accounts payable at March 31 are the result of March purchases of invontory 1. Monthly expenses are as follows commissions, 12% of sales, rent, $2,500 per month, other oxpenses (excluding depreciation), 6% of sales Assume that theso expenses are paid monthly Depreciation is $900 per month (includes depreciation on new assets) g. Equipment costing $1,500 wil be purchased for cash in April h. Management would like to mantan a manmum cash balance of at least $4,000 at the end of each 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 rato on these loans is 1% per month and for simplicily wo will assume that interest is not compounded The company would, as far as it is able, tepay the loan plus accumulated interest at the end of the quarter Using the data provided above, use the Excel Template provided to preparo the following budget schedules 1 Sales Budget (Merely enter the sales data provided) 2. Schedule of Expected Cash Collections 3. Merchandise Purchases Budget 4 Schedule of Expected Cash Disbursements - Merchandise Purchases 5 Schedule of Expected Cash Disbursements - Selling and Adrrinistrative Expenses 6. Cash Budget Please note that Excel formulas or functions should be used throughout the budget wherever poss ble, instead of entering numbers into each cell Managerial Accounting - Course Project Schedule of Fxnortarl Cach nilh Schedule of Expected Cash Disbursements - Selling \& dminiet...t.... Schedule of Expected Cash Disbursements - Selline \& Administrative
