You are the accountant for BamaWear Company, a nationwide distributor of Roll Tide tshirts for pet elephants The company has an exclusive franchise on the distribution of the clothing line As the company accountant, you have been given responsibility for all planning and budgeting Your first assignment is to prepare a master budget for the next three months, starting April 1 You have assembled the information below The tshirts are sold to retailers for $8 each Recent and forecasted sales in units are as follows January (actual) 20,000 February (actual) 24,000 March (actual) 28,000 April 35,000 May 45,000 June 60,000 July 40,000 August 36,000 September 32,000 All sales are on credit The company has found 25 of a month's sales are collected by month end An additional 50 is collected in the following month, and the remaining 25 is collected in the second month following sale Bad debts have been negligible Ending inventories are supposed to equal 90 of the next month's sales in units The t shirts cost the company $5 each Purchases are paid for as follows 50 in the month of purchase and the remaining 50 in the following month The companys monthly selling and administrative expenses are given below Variable Sales commission $1 t shirt Fixed Wages and Salaries Utilities Rent Depreciation Miscellaneous $22,000 $14,000 $1,200 $1,500 $3,000 All selling and admin costs are paid during the month, with cash, with the exception of Utilities and Rent which are paid in the following month The company declares dividends of $12,000 each quarter, payable the first month of the following quarter (so 1 st quarter dividends will be paid in April) At the end of the QUARTER, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $10,000 in cash

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You are the accountant for BamaWear Company, a nationwide distributor of Roll Tide tshirts for pet elephants. The company has an exclusive franchise on the

You are the accountant for BamaWear Company, a nationwide distributor of Roll Tide tshirts for pet elephants. The company has an exclusive franchise on the distribution of the clothing line. As the company accountant, you have been given responsibility for all planning and budgeting. Your first assignment is to prepare a master budget for the next three months, starting April 1. You have assembled the information below.

The tshirts are sold to retailers for $8 each. Recent and forecasted sales in units are as follows:

January (actual)	20,000
February (actual)	24,000
March (actual)	28,000
April	35,000
May	45,000
June	60,000
July	40,000
August	36,000
September	32,000

All sales are on credit. The company has found 25% of a month's sales are collected by month-end. An additional 50% is collected in the following month, and the remaining 25% is collected in the second month following sale. Bad debts have been negligible.

Ending inventories are supposed to equal 90% of the next month's sales in units. The t-shirts cost the company $5 each.

Purchases are paid for as follows: 50% in the month of purchase and the remaining 50% in the following month.

The companys monthly selling and administrative expenses are given below:

Variable:

Sales commission

$1/t-shirt

Fixed:

Wages and Salaries

Utilities

Rent

Depreciation

Miscellaneous

$22,000

$14,000

$1,200

$1,500

$3,000

All selling and admin costs are paid during the month, with cash, with the exception of Utilities and Rent which are paid in the following month.

The company declares dividends of $12,000 each quarter, payable the first month of the following quarter (so 1^st quarter dividends will be paid in April). At the end of the QUARTER, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $10,000 in cash.