The terrnova company has reached a point where it has completed all but final two budgets. some additional data for the company:
Equipment costing 1,500$ will be purchased in cash during october
The company would like to maintain a balance of at least 4,000$ at the end of each month .
company can borrow in even amounts of 1,000$ at the start each month
Create a cash Budget for Terranova for the quarter ending december 31 , 2020 . showing activity by month and in total ?
New Tab X Student solutX W UTF-8 Course C Office Editing for Docs, Sheets & Slides chrome extension://bpmcpldpdmajfigpch UTF-8"Course project Student Solution(2) (2).xls File Edit Insert Format Help Calibri 11 BIUSA H lir B D E F G H 1 2 Sales Budget 3 October November December Quarter 4 Sales in Units 9.750 1.170 146,250 157,170 5 Selling price $10 $10 510 $10 6 Sales in Dollars 597.500.000 3117.000.000 $146.250.00 $360, 750.00 7 8 9 10 1 Schedule of expected cash collections: 12 13 October November December 14 Cash sales Quarter $58.500 $70,200 15 Credit sales 587.750 $216.450 20,000 39.000 16 Total collections 46,800 105.800 $78,500 $109.200 17 $134,550 5322 250 16 20 of the preceding month's sales Given 2 Merchandise purchases budget: November December ew Tab X Student solut x W UTF-8"Course x My Drive - Gox Project parte C Office Editing for Docs, Sheets & Slides chrome extension://bpmcpldpdmaffigpchkic UTF-8"Course project Student Solution (2) (2).xls File Edit Insert Format Help Calibri - BIUSA D E Given F G H 2 Merchandise purchases budget: 6596 cost October November December Quarter Budgeted cost of goods soldi Add desired ending merchandise Total needs $63.375 376,050 $95,063 $234,488 560.840.0 124 215 $76,050.0 152.100 $24.960.0 120.023 $24.960 259.448 Less beginning merchandise inventory Required purchases 36.000 588 215 60.840 $91.260 76,050 $43.973 $36.000 $223.448 For Oct sales 578.000 sales 50% cost ratio $39.000 2At Oct 31 46,800 80537440 File Edit Insert Calibri 11 - B I Y SA H D F E * Given Schedule of expected cash disbursements-merchandise purchases $65,858 October November December Quarter Sept. purchases $21,750 $21,750 October purchases 44.108 $44,108 $88,215 November purchases 45,630 $45.630 $91,260 December purchases 21.986 $21,986 Total disbursements $89,738 $67,616 $223,211 . 3 Given 7 8 Schedule of expected cash disbursements-operating expenses 59 April May June Quarter 50 Commissions $11.700 $14.040 $17.550 $43,290 51 Rent 2,500 2.500 2.500 $7.500 52 Other expenses $5.850.0 $7,020.0 $8.775.0 $21,645 53 Depreciation Expense 5900 5900 5900 $2,700 54 Total operating expenses 520,950 $24.460 55 Less Depreciation $29.725 $75.135 $900 $900 56 Total disbursements 5900 $2.700 $20.050 $23.560 $28.825 572,435 GODB New Tab X Student solutX W UTF-8 Course C Office Editing for Docs, Sheets & Slides chrome extension://bpmcpldpdmajfigpch UTF-8"Course project Student Solution(2) (2).xls File Edit Insert Format Help Calibri 11 BIUSA H lir B D E F G H 1 2 Sales Budget 3 October November December Quarter 4 Sales in Units 9.750 1.170 146,250 157,170 5 Selling price $10 $10 510 $10 6 Sales in Dollars 597.500.000 3117.000.000 $146.250.00 $360, 750.00 7 8 9 10 1 Schedule of expected cash collections: 12 13 October November December 14 Cash sales Quarter $58.500 $70,200 15 Credit sales 587.750 $216.450 20,000 39.000 16 Total collections 46,800 105.800 $78,500 $109.200 17 $134,550 5322 250 16 20 of the preceding month's sales Given 2 Merchandise purchases budget: November December ew Tab X Student solut x W UTF-8"Course x My Drive - Gox Project parte C Office Editing for Docs, Sheets & Slides chrome extension://bpmcpldpdmaffigpchkic UTF-8"Course project Student Solution (2) (2).xls File Edit Insert Format Help Calibri - BIUSA D E Given F G H 2 Merchandise purchases budget: 6596 cost October November December Quarter Budgeted cost of goods soldi Add desired ending merchandise Total needs $63.375 376,050 $95,063 $234,488 560.840.0 124 215 $76,050.0 152.100 $24.960.0 120.023 $24.960 259.448 Less beginning merchandise inventory Required purchases 36.000 588 215 60.840 $91.260 76,050 $43.973 $36.000 $223.448 For Oct sales 578.000 sales 50% cost ratio $39.000 2At Oct 31 46,800 80537440 File Edit Insert Calibri 11 - B I Y SA H D F E * Given Schedule of expected cash disbursements-merchandise purchases $65,858 October November December Quarter Sept. purchases $21,750 $21,750 October purchases 44.108 $44,108 $88,215 November purchases 45,630 $45.630 $91,260 December purchases 21.986 $21,986 Total disbursements $89,738 $67,616 $223,211 . 3 Given 7 8 Schedule of expected cash disbursements-operating expenses 59 April May June Quarter 50 Commissions $11.700 $14.040 $17.550 $43,290 51 Rent 2,500 2.500 2.500 $7.500 52 Other expenses $5.850.0 $7,020.0 $8.775.0 $21,645 53 Depreciation Expense 5900 5900 5900 $2,700 54 Total operating expenses 520,950 $24.460 55 Less Depreciation $29.725 $75.135 $900 $900 56 Total disbursements 5900 $2.700 $20.050 $23.560 $28.825 572,435 GODB
