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Purchase paid in current month 78% Purchase paid in next month 22% Purchase are all on credit Planned ending inventory as a percentage of next months cost of goods sold 8% Sales Commission Information Sales commission as a percentage of sales 6.5% Sales commissions are paid the month after they are incurred Advertising Expense Information Variable Rate 17.50% Fixed cost 60,000 Insurance policy Information #of months of insurance coverage paid for each year 12 The policy period is from august 1 to July 31 each year The pre was paid on July 31 2019 30,000 The premium will be charged to prepaid insurance General and Administrative Expense Information Fixed cost portion 60,000 Variable rate (as a percentage of sales) 15.0% Selling and administrative expenses are paid in the month incurred Fixed Asset Information Purchase Land of September 15, 2019 Current Depreciation expense per month 150,000 10,000 Long term Loan Interest Information The interest rate of the long-term debt per month is 1% Interest paid on the principle balance at the beginning of the month Minimum cash balance 25,000 New borrowing must be in 1000 increments Tax Information Income Tax rate Taxes are paid in the month after they are incurred expensed 25% Dividend Information Cash dividend declared on September 20, 2019 Cash dividend paid on October 15, 2019 25,000 Balance Sheet August 31, 2019 Assets Current assets Cash Accounts receivable Inventory Prepaid insurance Total current assets 25,800 595,000 50,688 27,500 698,988 698,988 Property plant and equipment Land 100,000 Equipment 300,000 Accumulated depreciation (100,000) Total PPE 300,000 Total assets 998,988 Liabilities and stockholders' equity Current liabilities account payable 81,859 commissions payable 595,00 Advertising expense payable 121,250 Income taxes payable 22,000 Dividends payable Total current liabilities 284,609 Long term debt 220,000 Stockholders' equity Common stock 89,500 Retained earnings 404,879 Total stockholders' equity 494,379 Total liabilities and stockholders' equity 998,988 Provide 1.sales budget 2.Purchase budget 3.Selling and admin budget 4.Cash budget 5.Proforma income statement 6.Balance sheets for September and October September October 1 Total Cash Receipts 2 Inventory Purchases Cash Payments for Inventory Purchases 3 Total Variable Selling & Administrative Costs 4 Total Fixed Selling & Administrative Costs 5 6 Total Cash Payments (S&A Budget) 7 Total Cash Surplus (Deficit) YOU POSIT 8 Total New Borrowing (Repayments) SHO get thi 9 Contribution Margin 10 Interest Expense 11 Pre-tax income 12 Income tax expense 13 Accounts Receivable 14 Inventory 15 Prepaid Insurance 16 Accumulated Depreciation 17 Accounts Payable 18 Commissions Payable 19 Long-Term Debt 20 Retained Earnings YOU MUST SHOW A DEFICIT AS A NEGATIVE NUMBER AND A SURPLUS AS A POSITIVE NUMBER! SHOW REPAYMENTS AS A NEGATIVE NUMBER (DO NOT ROUND!!! Or you will get this WRONG!) 2. Cost of goods sold is budgeted to be 36% of sales. 3. The Bobcat Beverage Company, Inc. plans to end each month with inventory levels equal to 8% of the next month's cost of sales. 4. The company pays for 78% of the purchases of merchandise in the month of the purchase and 22% in the following month. 5. The Bobcat Beverage Company, Inc. pays a sales commission of 6.5% on all sales. The selling commission is paid in the month after the salesmen earn the commission. 6. The company believes that advertising expense is a mixed cost. Based on an analysis of data from previous years, they determine that the best estimate of advertising expense is 17.5% of sales plus $60,000. 7. The company pays all of its advertising expense in the month AFTER it is incurred. 8. The Bobcat Beverage Company, Inc. estimates its general and administrative expenses to be equal to 15% of budgeted sales plus $60,000. The general and administrative expenses are paid in the month in which they are incurred. 9. Depreciation is $10,000 per month on the property, plant and equipment owned on August 31, 2019 for the period of this budget. 10. On July 31, 2019, the company purchased and paid cash of $30,000 for a twelve- month policy covering the period August 1, 2019 to July 31, 2020 and recorded the cost in Prepaid Insurance. 11. On September 15, 2019, the company purchased Land for $150,000, paying cash. 12. The Bobcat Beverage Company, Inc. records interest expense and accrues interest payable at the rate of 1% per month (simple interest) based on the beginning balance of Long-Term Debt for that month. The Bobcat Beverage Company, Inc. will pay interest in the month it is incurred. 13. The Bobcat Beverage Company must maintain a minimum cash balance of $25,000. If it must borrow any funds, it must borrow in $1,000 increments. Any excess cash will be used to pay down long-term debt. The company may either borrow funds or repay funds, but not both in the same month. 14. The Bobcat Beverage Company, Inc. records income tax expense and accrues income tax payable monthly using a 25% estimated tax rate. Income taxes are paid in the month AFTER they are incurred. 15. The company will declare a cash dividend on September 20, 2019 for $25,000. The cash dividend will be paid on October 15, 2019. No other dividends were declared or paid. Once you have completed the budget, determine the following balances. On the template, make sure you link your answer to the appropriate cell. Failure to link to the appropriate cell will result i zero credit for that answer. 1. Total Cash Receipts for September and October 2. Total Inventory Purchases for September and October 3. Total Cash Payments for Inventory Purchases for September and October 4. Total Variable Selling & Administrative Costs for September and October 5. Total Fixed Selling & Administrative Costs for September and October 6. Total Cash Payments (S&A) for September and October 7. Total Cash Surplus (Deficit) for September and October 8. Total New Borrowing (Repayments) for September and October 9. The Contribution Margin for September and October 10. Total Interest Expense for September and October 11. Pre-tax Income for September and October 12. Income tax expense for September and October 13. Ending Balance of Accounts Receivable for September and October 14. Ending Balance of Inventory for September and October 15. Ending Balance of Prepaid Insurance for September and October 16. Ending Balance of Accumulated Depreciation for September and October 17. Ending Balance of Accounts Payable for September and October 18. Ending Balance of Commissions Payable for September and October 19. Ending Balance of Long-Term Debt for September and October 20. Ending Balance of Retained Earnings for September and October Expected sales (all sales are credit sales) September 700,00 October 800,000 November 900,000 Collections of Accounts Relievable Month of sale 24% Month following sale 76% Cost of goods sold percentage of sales 36% Inventory Purchase Information Comprehensive Budgeting Problem Spring 2020 The Bobcat Beverage Company, Inc. Comprehensive Budgeting Problem The assignment for this problem is to prepare the Bobcat Beverage Company, Inc., comprehensive budget for September 2019 and October 2019. Your budget MUST be completed in EXCEL. The format of the Proforma Income Statement must be a contribution margin income statement. NOTE: You MUST use formulas to link the budgets and values within the budgets where possible. The Bobcat Beverage Company, Inc. sells a wide variety of beverages and snack foods. The Bobcat Beverage Co., Inc. Sales Forecast for Sept. to Nov., 2019 September October November Sales Revenue (all Sales are $700,000 $800,000 $900,000 on Credit) Bobcat Beverage Company, Inc Balance Sheet As of August 31, 2019 $ Assets: Cash Accounts receivable Inventory Prepaid Insurance Current assets $ 25,800 595,000 50,688 27.500 $ 698,988 Liabilities: Accounts payable Sales commissions payable Advertising Expense Payable Income taxes payable Dividends payable Current liabilities 81,859 59,500 121,250 22.000 $ 284,609 Long-term debt 220,000 Property, Plant & Equipment Land Plant & Equipment Accumulated depreciation 100,000 300,000 (100,000) Stockholders' equity Common stock Retained earnings Total SE & Liabilities $ 89,500 404,879 $ 998.988 Total assets $ 998.988 Policies and Plans used by The Bobcat Beverage Company, Inc., in budgeting 1. All Sales are on Credit. Sales are collected 24% in the month of sale and 76% in the month following sale. Purchase paid in current month 78% Purchase paid in next month 22% Purchase are all on credit Planned ending inventory as a percentage of next months cost of goods sold 8% Sales Commission Information Sales commission as a percentage of sales 6.5% Sales commissions are paid the month after they are incurred Advertising Expense Information Variable Rate 17.50% Fixed cost 60,000 Insurance policy Information #of months of insurance coverage paid for each year 12 The policy period is from august 1 to July 31 each year The pre was paid on July 31 2019 30,000 The premium will be charged to prepaid insurance General and Administrative Expense Information Fixed cost portion 60,000 Variable rate (as a percentage of sales) 15.0% Selling and administrative expenses are paid in the month incurred Fixed Asset Information Purchase Land of September 15, 2019 Current Depreciation expense per month 150,000 10,000 Long term Loan Interest Information The interest rate of the long-term debt per month is 1% Interest paid on the principle balance at the beginning of the month Minimum cash balance 25,000 New borrowing must be in 1000 increments Tax Information Income Tax rate Taxes are paid in the month after they are incurred expensed 25% Dividend Information Cash dividend declared on September 20, 2019 Cash dividend paid on October 15, 2019 25,000 Balance Sheet August 31, 2019 Assets Current assets Cash Accounts receivable Inventory Prepaid insurance Total current assets 25,800 595,000 50,688 27,500 698,988 698,988 Property plant and equipment Land 100,000 Equipment 300,000 Accumulated depreciation (100,000) Total PPE 300,000 Total assets 998,988 Liabilities and stockholders' equity Current liabilities account payable 81,859 commissions payable 595,00 Advertising expense payable 121,250 Income taxes payable 22,000 Dividends payable Total current liabilities 284,609 Long term debt 220,000 Stockholders' equity Common stock 89,500 Retained earnings 404,879 Total stockholders' equity 494,379 Total liabilities and stockholders' equity 998,988 Provide 1.sales budget 2.Purchase budget 3.Selling and admin budget 4.Cash budget 5.Proforma income statement 6.Balance sheets for September and October September October 1 Total Cash Receipts 2 Inventory Purchases Cash Payments for Inventory Purchases 3 Total Variable Selling & Administrative Costs 4 Total Fixed Selling & Administrative Costs 5 6 Total Cash Payments (S&A Budget) 7 Total Cash Surplus (Deficit) YOU POSIT 8 Total New Borrowing (Repayments) SHO get thi 9 Contribution Margin 10 Interest Expense 11 Pre-tax income 12 Income tax expense 13 Accounts Receivable 14 Inventory 15 Prepaid Insurance 16 Accumulated Depreciation 17 Accounts Payable 18 Commissions Payable 19 Long-Term Debt 20 Retained Earnings YOU MUST SHOW A DEFICIT AS A NEGATIVE NUMBER AND A SURPLUS AS A POSITIVE NUMBER! SHOW REPAYMENTS AS A NEGATIVE NUMBER (DO NOT ROUND!!! Or you will get this WRONG!) 2. Cost of goods sold is budgeted to be 36% of sales. 3. The Bobcat Beverage Company, Inc. plans to end each month with inventory levels equal to 8% of the next month's cost of sales. 4. The company pays for 78% of the purchases of merchandise in the month of the purchase and 22% in the following month. 5. The Bobcat Beverage Company, Inc. pays a sales commission of 6.5% on all sales. The selling commission is paid in the month after the salesmen earn the commission. 6. The company believes that advertising expense is a mixed cost. Based on an analysis of data from previous years, they determine that the best estimate of advertising expense is 17.5% of sales plus $60,000. 7. The company pays all of its advertising expense in the month AFTER it is incurred. 8. The Bobcat Beverage Company, Inc. estimates its general and administrative expenses to be equal to 15% of budgeted sales plus $60,000. The general and administrative expenses are paid in the month in which they are incurred. 9. Depreciation is $10,000 per month on the property, plant and equipment owned on August 31, 2019 for the period of this budget. 10. On July 31, 2019, the company purchased and paid cash of $30,000 for a twelve- month policy covering the period August 1, 2019 to July 31, 2020 and recorded the cost in Prepaid Insurance. 11. On September 15, 2019, the company purchased Land for $150,000, paying cash. 12. The Bobcat Beverage Company, Inc. records interest expense and accrues interest payable at the rate of 1% per month (simple interest) based on the beginning balance of Long-Term Debt for that month. The Bobcat Beverage Company, Inc. will pay interest in the month it is incurred. 13. The Bobcat Beverage Company must maintain a minimum cash balance of $25,000. If it must borrow any funds, it must borrow in $1,000 increments. Any excess cash will be used to pay down long-term debt. The company may either borrow funds or repay funds, but not both in the same month. 14. The Bobcat Beverage Company, Inc. records income tax expense and accrues income tax payable monthly using a 25% estimated tax rate. Income taxes are paid in the month AFTER they are incurred. 15. The company will declare a cash dividend on September 20, 2019 for $25,000. The cash dividend will be paid on October 15, 2019. No other dividends were declared or paid. Once you have completed the budget, determine the following balances. On the template, make sure you link your answer to the appropriate cell. Failure to link to the appropriate cell will result i zero credit for that answer. 1. Total Cash Receipts for September and October 2. Total Inventory Purchases for September and October 3. Total Cash Payments for Inventory Purchases for September and October 4. Total Variable Selling & Administrative Costs for September and October 5. Total Fixed Selling & Administrative Costs for September and October 6. Total Cash Payments (S&A) for September and October 7. Total Cash Surplus (Deficit) for September and October 8. Total New Borrowing (Repayments) for September and October 9. The Contribution Margin for September and October 10. Total Interest Expense for September and October 11. Pre-tax Income for September and October 12. Income tax expense for September and October 13. Ending Balance of Accounts Receivable for September and October 14. Ending Balance of Inventory for September and October 15. Ending Balance of Prepaid Insurance for September and October 16. Ending Balance of Accumulated Depreciation for September and October 17. Ending Balance of Accounts Payable for September and October 18. Ending Balance of Commissions Payable for September and October 19. Ending Balance of Long-Term Debt for September and October 20. Ending Balance of Retained Earnings for September and October Expected sales (all sales are credit sales) September 700,00 October 800,000 November 900,000 Collections of Accounts Relievable Month of sale 24% Month following sale 76% Cost of goods sold percentage of sales 36% Inventory Purchase Information Comprehensive Budgeting Problem Spring 2020 The Bobcat Beverage Company, Inc. Comprehensive Budgeting Problem The assignment for this problem is to prepare the Bobcat Beverage Company, Inc., comprehensive budget for September 2019 and October 2019. Your budget MUST be completed in EXCEL. The format of the Proforma Income Statement must be a contribution margin income statement. NOTE: You MUST use formulas to link the budgets and values within the budgets where possible. The Bobcat Beverage Company, Inc. sells a wide variety of beverages and snack foods. The Bobcat Beverage Co., Inc. Sales Forecast for Sept. to Nov., 2019 September October November Sales Revenue (all Sales are $700,000 $800,000 $900,000 on Credit) Bobcat Beverage Company, Inc Balance Sheet As of August 31, 2019 $ Assets: Cash Accounts receivable Inventory Prepaid Insurance Current assets $ 25,800 595,000 50,688 27.500 $ 698,988 Liabilities: Accounts payable Sales commissions payable Advertising Expense Payable Income taxes payable Dividends payable Current liabilities 81,859 59,500 121,250 22.000 $ 284,609 Long-term debt 220,000 Property, Plant & Equipment Land Plant & Equipment Accumulated depreciation 100,000 300,000 (100,000) Stockholders' equity Common stock Retained earnings Total SE & Liabilities $ 89,500 404,879 $ 998.988 Total assets $ 998.988 Policies and Plans used by The Bobcat Beverage Company, Inc., in budgeting 1. All Sales are on Credit. Sales are collected 24% in the month of sale and 76% in the month following sale