Using the above information complete the following admin budget and cash budget.
MOST LIKELY NUMBERS AND ASSUMPTIONS SALES MANAGER PRIVATE INFORMATION Most likely sales $ July 600,000 $ August September 910,000 $ 475,000 $ October 385.000 HON PURCHASING MANAGER PRIVATE INFORMATION Most likely cost of merchandise as a % of sales Desired ending inventory as a percentage of next month's cost of sales Part 1 Information 45% 20% OPERATION MANAGER PRIVATE INFORMATION Most likely shipping expenses as a percent of sales Most likely other expenses as a percent of sales Salaries and wages (per month) Most likely advertising costs (per month) Most likely insurance costs (per month) Depreciation expense (per month) Part 1 Information 5.0% 8.0% 85,000 50,000 3,000 $ 25,000 FINANCE MANAGER PRIVATE INFORMATION Percent sales collected in month of sale Percent sales collected in month after sale Part 1 Information 30% - Percent of inventory purchases paid in month of purchase Percent of inventory purchases paid in month after purchase 50% 50% : - Percent of operating expenses paid in month of purchase Percent of operating expenses paid in month after purchase 100% 0% $ Desired minimum ending cash balance each month Borrow in increments of Monthly interest rate on borrowings (not compounded) 35,000 1,000 1% DUA Other planned outlays of cash Capital expenditures Dividends July 200,000 $ 50,000 $ August September 90,000 $ SRS Educational Supply Company Balance Sheet Previous Year End Assets $ Current assets: Cash Accounts receivable Inventory Prepaid insurance Total current assets Buildings and equipment (net) TOTAL ASSETS 40,000 340,000 50.000 18.000 $ $ $ 448,000 860.000 1,308,000 Liabilities and Equity GA 130,000 $ 130,000 Liabilites Accounts payable Notes payable Total liabilities Stockholder's equity Capital stock Retained earnings Total equity TOTAL LIABILITIES AND EQUITY $ 420,000 758.000 $ $ 1,178,000 1,308,000 Selling and Administrative Budget July August September Quarter Sales Shipping as a Percentage of Sales Other Expenses as a Percentage of Sales Variable Expenses: Shipping Other Expenses Total Variable Expenses Fixed Expenses: Salaries and Wages Advertising Prepaid Insurance Depreciation Total Fixed Expesnes Total Selling and Admin Expenses Less Noncash Items (Depreciation and Prepaid Ins) Total Cash Disbursements Prepaid Insurance That Is Expensed During the Quarter Depreciation Expense Recognized During the Quarter Cash Budget August September Quarter July Cash Balance: Beginning Add Cash Collections (From Sales Budget) Total cash Available Less Cash Disbursements For Inventory (From Purchasing Budget) For Operating Expenses (From Selling and Admin Budget) For Equipment For Cash Dividends For Interest (From Previous Month's Borrowing) Total Cash Disbursements Excess (Deficiency) of Cash Financing Borrowing Repayment Total Financing Cash Balance: Ending Outstanding Loan Balance Interest on Borrowing (Due the following Quarter)
