Total 1st Quarter April 6,325 107.00 676,822 =C19*C20 INN 6 1. Invest in exchange for stock $ 100,000 7 2. Purchase delivery truck with cash $ 60,000 8 with $0 salvage value and expected useful life in years 10 9 3. Sales increase per month 2% 10 Collections in month of sale 75% 11 Collections of remainder in following month of sale 25% 12 4. Desired ending inventory (% of next month's expected sales) 20% 13 Payments in month of purchase 10% 14 Payments of remainder in following month of purchase 90% 15 s. Other operating expenses per month to be paid in month incurred $ 53,500 16 17 Requirement 1: Complete the Sales Budget and Cash Collections for April - June and the quarter in total using applicable assumptions above. 18 Sales Budget April May June 19 Sales in units 2,060 2,101 2,164 20 Price per unit $ 107.00 $ 107.00 $ 107.00 $ 21 Total sales dollars $ 220,420 224,828 $ 231,573 $ 22 23 Cash Collections April May June 24 April sales $ 165,315$ 55,105 $ THIS 25 May sales 168,621 | S 56,207 S 26 June sales 173,680 $ 27 Total cash collected $ 165,3155 223,726 S 229,887 $ 28 Accounts receivable at month end $ 55,105 $ 56,2075 57,893 29 30 Requirment 2: Complete the Purchase Budget for April - June and the quarter in total using the applicable assumptions above. 31 Purchases Budget April May June 32 Sales in units 2,060 2.101 2,164 33 Desired ending inventory 420 433 442 34 Total required 2,480 2.534 2,606 35 Beginning inventory 420 433 36 Total units to purchase 2,480 2,114 2,173 37 Cost per unit $ 64.00 $ 64.00 $ 64.00 $ 38 Purchases in dollars $ 158,735 S 135,28415 139,065 S 39 40 Cash Payments April May June 41 Inventory purchases: 42 April purchases $ 15,8745 142,862 | S s 43 May purchases 13,528 121,755 44 June purchases 13,907 45 Total cash paid for Inventory 15,874 156,390 135,662 46 Cash paid for other operating expenses 53,500 53,500 53,500 47 Accounts Payable at month end 142,862 121,755 125,159 48 Total 1st Quarter April 220,420 C21*0.75 224,828 n/a 173,680 n/a 618,928 SUM(C24. -C21-C27 Total 1st Quarter April 6,325 =C19 442 =D32*0.2 6,767 =SUM(C32: n/a #VALUE! =C34 64.00 433,084 =C36*c37 Total 1st Quarter April 158,735 135,284 13,907 307,926 160,500 =C38*0.1 n/a n/a =C42 =D15 -C38-045 G Shareholder's Equity Amount Account 100,000 Stock Cell links Assets Amount -06 -07 n/a =F38 --F45 -F27 -E28 --F32C3 --F46 - 60000/ 676,822 Sales Revenue (404,828) Cost of Goods Sold (160,500) (1,500) depreciation expense / D 9 Requirement 3: Using the information from above, prepare Karry No Key's quarterly budgeted financial statements. 50 Assets Llabilities 51 Amount Account Amount Account 52 Issued stock 100,000 Cash 53 Purchase equipment 60,000 Equipment 54 (60,000) Cash 55 Inventory purchases 433,084 Inventory 125,159 Accounts Payable 56 (307,926) Cash 57 Sales 618,928 Cash 58 57,893 Accounts Receivable 59 (404,828) Inventory 60 Other operating expenses (160,500) Cash 61 Depreciation (1,500) Accumulated depreciation 62 63 Karry No Key, Inc. 64 Budgeted Contribution Margin Income Statement cell linkes/formulas 65 For the Quarter Ended June 30, 20X1 66 Per Unit) $ Totals Per Unit 67 Sales revenue n/a 68 Less variable costs 69 Cost of goods sold n/a 70 Total variable costs wa n/a 71 Contribution margin n/a n/a 72 Less fixed costs: n/a 73 Other operating expenses n/a 74 Depreciation expense n/a 75 Total fixed costs na 76 Operating income wa 77 78 Karry No Key, Inc. 79 Budgeted Statement of Cash Flows 80 For the Quarter Ended June 30, 20X1 81 Operating activities: 82 Cash collected from customers 83 Cash paid for inventory 84 Cash paid for other operating expenses 85 Total cash from operating activities 86 Investing activity: Purchase of equipment 87 Financing activity: Issue stock 88 Net change in cash 89 Plus beginning cash balance 90 Ending cash balance n/a 91 33333333 D E G H Budgeted Statement of Cash Flows For the Quarter Ended June 30, 20X1 Operating activities: Cash collected from customers Cash pald for inventory Cash paid for other operating expenses Total cash from operating activities Investing activity: Purchase of equipment Financing activity: Issue stock Net change in cash Plus beginning cash balance Ending cash balance n/a na n/a n/a n/a n/a n/a n/a n/a Liabilities & shareholders' equity n/a n/a Karry No Key, Inc. Budgeted Balance Sheet At June 30, 20X1 Assets Liabilities & shareholders' equity Cash Accumulated depreciation Total current liabilities Inventory Total current assets Common stock Equipment, net Retained earnings Total assets Total liabilities & shareholders' equity Requirement 4: Using the information from above, prepare Karry No Key's quarterly flexible budget and compare to the actual results provided below determining whether the variances are favorable or unfavorable. Karry No Key, Inc. Flexible Budget Performance Report For the Quarter Ended June 30 Cell links/formulas: Assets n/a n/a n/a n/a n/a n/a n/a n/a n/a Budget Per Unit Favorable or Unfavorable Master Flexible Actuals Variance Cell links/formulas: Budget Master n/a n/a 1 Units 2 Sales revenue 3 Less variable costs: $ $ n/a n/a 5 Contribution margin 6 Less fixed costs: 3 8 Depreciation expense 9 Total fixed costs Operating income n/a n/a n/a n/a $ Total 1st Quarter April 6,325 107.00 676,822 =C19*C20 INN 6 1. Invest in exchange for stock $ 100,000 7 2. Purchase delivery truck with cash $ 60,000 8 with $0 salvage value and expected useful life in years 10 9 3. Sales increase per month 2% 10 Collections in month of sale 75% 11 Collections of remainder in following month of sale 25% 12 4. Desired ending inventory (% of next month's expected sales) 20% 13 Payments in month of purchase 10% 14 Payments of remainder in following month of purchase 90% 15 s. Other operating expenses per month to be paid in month incurred $ 53,500 16 17 Requirement 1: Complete the Sales Budget and Cash Collections for April - June and the quarter in total using applicable assumptions above. 18 Sales Budget April May June 19 Sales in units 2,060 2,101 2,164 20 Price per unit $ 107.00 $ 107.00 $ 107.00 $ 21 Total sales dollars $ 220,420 224,828 $ 231,573 $ 22 23 Cash Collections April May June 24 April sales $ 165,315$ 55,105 $ THIS 25 May sales 168,621 | S 56,207 S 26 June sales 173,680 $ 27 Total cash collected $ 165,3155 223,726 S 229,887 $ 28 Accounts receivable at month end $ 55,105 $ 56,2075 57,893 29 30 Requirment 2: Complete the Purchase Budget for April - June and the quarter in total using the applicable assumptions above. 31 Purchases Budget April May June 32 Sales in units 2,060 2.101 2,164 33 Desired ending inventory 420 433 442 34 Total required 2,480 2.534 2,606 35 Beginning inventory 420 433 36 Total units to purchase 2,480 2,114 2,173 37 Cost per unit $ 64.00 $ 64.00 $ 64.00 $ 38 Purchases in dollars $ 158,735 S 135,28415 139,065 S 39 40 Cash Payments April May June 41 Inventory purchases: 42 April purchases $ 15,8745 142,862 | S s 43 May purchases 13,528 121,755 44 June purchases 13,907 45 Total cash paid for Inventory 15,874 156,390 135,662 46 Cash paid for other operating expenses 53,500 53,500 53,500 47 Accounts Payable at month end 142,862 121,755 125,159 48 Total 1st Quarter April 220,420 C21*0.75 224,828 n/a 173,680 n/a 618,928 SUM(C24. -C21-C27 Total 1st Quarter April 6,325 =C19 442 =D32*0.2 6,767 =SUM(C32: n/a #VALUE! =C34 64.00 433,084 =C36*c37 Total 1st Quarter April 158,735 135,284 13,907 307,926 160,500 =C38*0.1 n/a n/a =C42 =D15 -C38-045 G Shareholder's Equity Amount Account 100,000 Stock Cell links Assets Amount -06 -07 n/a =F38 --F45 -F27 -E28 --F32C3 --F46 - 60000/ 676,822 Sales Revenue (404,828) Cost of Goods Sold (160,500) (1,500) depreciation expense / D 9 Requirement 3: Using the information from above, prepare Karry No Key's quarterly budgeted financial statements. 50 Assets Llabilities 51 Amount Account Amount Account 52 Issued stock 100,000 Cash 53 Purchase equipment 60,000 Equipment 54 (60,000) Cash 55 Inventory purchases 433,084 Inventory 125,159 Accounts Payable 56 (307,926) Cash 57 Sales 618,928 Cash 58 57,893 Accounts Receivable 59 (404,828) Inventory 60 Other operating expenses (160,500) Cash 61 Depreciation (1,500) Accumulated depreciation 62 63 Karry No Key, Inc. 64 Budgeted Contribution Margin Income Statement cell linkes/formulas 65 For the Quarter Ended June 30, 20X1 66 Per Unit) $ Totals Per Unit 67 Sales revenue n/a 68 Less variable costs 69 Cost of goods sold n/a 70 Total variable costs wa n/a 71 Contribution margin n/a n/a 72 Less fixed costs: n/a 73 Other operating expenses n/a 74 Depreciation expense n/a 75 Total fixed costs na 76 Operating income wa 77 78 Karry No Key, Inc. 79 Budgeted Statement of Cash Flows 80 For the Quarter Ended June 30, 20X1 81 Operating activities: 82 Cash collected from customers 83 Cash paid for inventory 84 Cash paid for other operating expenses 85 Total cash from operating activities 86 Investing activity: Purchase of equipment 87 Financing activity: Issue stock 88 Net change in cash 89 Plus beginning cash balance 90 Ending cash balance n/a 91 33333333 D E G H Budgeted Statement of Cash Flows For the Quarter Ended June 30, 20X1 Operating activities: Cash collected from customers Cash pald for inventory Cash paid for other operating expenses Total cash from operating activities Investing activity: Purchase of equipment Financing activity: Issue stock Net change in cash Plus beginning cash balance Ending cash balance n/a na n/a n/a n/a n/a n/a n/a n/a Liabilities & shareholders' equity n/a n/a Karry No Key, Inc. Budgeted Balance Sheet At June 30, 20X1 Assets Liabilities & shareholders' equity Cash Accumulated depreciation Total current liabilities Inventory Total current assets Common stock Equipment, net Retained earnings Total assets Total liabilities & shareholders' equity Requirement 4: Using the information from above, prepare Karry No Key's quarterly flexible budget and compare to the actual results provided below determining whether the variances are favorable or unfavorable. Karry No Key, Inc. Flexible Budget Performance Report For the Quarter Ended June 30 Cell links/formulas: Assets n/a n/a n/a n/a n/a n/a n/a n/a n/a Budget Per Unit Favorable or Unfavorable Master Flexible Actuals Variance Cell links/formulas: Budget Master n/a n/a 1 Units 2 Sales revenue 3 Less variable costs: $ $ n/a n/a 5 Contribution margin 6 Less fixed costs: 3 8 Depreciation expense 9 Total fixed costs Operating income n/a n/a n/a n/a $