WINE TO END WHINING, INC.
PLANNING DATA FOR 2021
All Sales are on Credit
Collections of Accounts Receivable:
Month of Service	55.00%
Month following Service	45.00%
Actual December 2020 Sales	$ 200,000
Expected Sales in Dollars
January	$ 220,000
February	$ 193,000
March	$ 178,000
April	$ 201,000
Cost of Goods Sold as a percentage of selling price.	65.00%
Planned ending inventory as a percentage of next month's required inventory.	72.00%
Purchases are are all on credit.
Purchases paid in current month	34.00%
Purchases paid in next month	66.00%
Sales commission as a percent of sales	2.50%
Sales commission are paid one month after the month incurred.
Advertising expenses have a fixed and variable portion:
Fixed portion	$4,200
The fixed portion of the advertising is paid in the current month.
Variable portion as a percentage of sales	1.00%
The variable portion is paid one month after the month incurred.
Insurance policy:
Months of insurance coverage paid for	12
The policy period is from February 1 to January 31 each year
The premium to be paid on February 1, 2021 is	$18,000
The premium will be charged to prepaid insurance
Selling and Administrative expenses have a fixed and variable portion:
Fixed portion is paid in the month incurred	$29,000
Variable portion as a percentage of sales	2.00%
Variable S&A expenses are paid one month after the month incurred
Depreciation expense per month	$5,000
The annual interest rate on the long term debt is	4.50%
Interest is incurred on the principal balance outstanding each month.
Interest is paid on a quarterly basis. Interest for December to February will be paid March 1.
No principal payments are scheduled to be made on the long-term debt until September of 2021
Income Tax Rate	21.00%
Accrued taxes are paid on the 15th of January, April, July and October
The Company's Board of Directors plans to declare a dividend on January 20	$12,000
It will be paid on February 15.

WINE TO END WHINING, INC.
BALANCE SHEET
December 31, 2020
ASSETS
Current Assets
Cash	103,200
Accounts Receivable	90,000
Inventory	102,960
Prepaid Insurance	1,500
Total Current Assets	297,660
Property Plant and Equipment
Office Equipment	300,000
Accumulated Depreciation	(60,000)
Total Property Plant and Equipment	240,000
Total Assets	537,660
LIABILITIES AND SHAREHOLDERS EQUITY
LIABILITIES
Current Liabilities
Accounts Payable - Purchases	91,978
Sales Commission Payable	5,000
Selling and Admin Payable	4,000
Advertising Payable	2,000
Interest Payable	600
Dividends Payable	-
Income Taxes Payable	12,970
Total Current Liabilities	116,548
Long Term Debt	160,000
Total Liabilities	276,548
SHAREHOLDERS' EQUITY
Common Stock	124,000
Retained Earnings	137,112
Total Shareholders' Equity	261,112
Total Liabilities and Shareholders Equity	537,660

Based on the information available to you, complete the Cash Budget worksheet below:

Check figures are: January Cash Receipts = $211,000; February Cash Disbursements = $201,606; March Ending Cash Balance = $142,246.

WINE TO END WHINING, INC.
PLANNED CASH TRANSACTIONS and CASH BUDGET
For the Month Ending,
	Jan 31, 2021		Feb 28, 2021		Mar 31, 2021
CASH IN
55% This Month's Sales
45% of Last Month's Sales
Total Cash Receipts
CASH OUT
66% Last Month's Purchases
34% This Month's Purchases
Commissions
Advertising
Selling & Admin.
Insurance
Interest
Dividends
Income Tax
Total Cash Disbursements
CASH BUDGET
Beginning Balance of Cash
Cash Receipts
Cash Available
Cash Disbursements
Ending Cash Balance