Your new manager has asked for your explanation about your experience in preparing this budget. She specifically wants to know your thoughts on the value of all this work and whether the benefits from the work are worth the effort. Prepare a memo, no longer than 2 pages, describing your experience from this exercise, and your thoughts on the value of having a Master Budget.

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Sales Budget Part 1 April May June Quarter July Aug Budgeted Na of Units Budgeted Sales Price 35,000 45,000 60,000 140,000 40,000 36,000 8 S 8 S 8 S 8 S $ 288,000 Budgeted Sale S 280,000 $ 360,000 $ 480,000 $1,120,000 $ 320,000 Schedule Part 2 Expected cash Collection April May June Ouarter Accounts Receivable Accounts Receivoble Feb 48,000 S 48,000 112,000 56,000 168.000 $ Mar April Sale 70,000 S 140,000 S 70,000 $ 280.000 $ 90,000 180,000 270,000 $ $ 120,000 120,000 $ May Sale 90.000 June Sale 360,000 Total Collection 230,000 S 286,000 $ 370,000 S 886,000 $ 450,000 Purchase Budget Part 3 April July May June Quarter AuF Budgeted Sale unit ,000 35,000 45,000 60,000 000 40.000 Add:Desired Inventory Ending 90% 40.500 54,000 36.000 32,400 36,000 Total need 75,500 99.000 96.000 176,000 72,400 Less: Beginning Inventory Budgeted Purchase Units 36.000 -31,500 -40,500 54,000 31,500 42.000 44,000 58.500 144.500 5.00 5.00 $ 722.500 5.00 S Per unit Cost 5.00 S 220,000 $ 292,500 $210.000 Budgeted Purchase Cost Scheuld of Expected payment Part 4 April ay June Quarter Accounts Payble S Accounts Payable 85,750 85,750 $ 220,000 146,250 S 146,250 292,500 s 105,000 $ 105,000 $ 110,000 S110,000 April Pur May Pur June Pur 105,000 195,750 $ 256,250 $ 251,250 $ 703,250 $ Budgeted Payment 105,000 Part 1e Selling and Admin Expense April ay June Ouarter Variable 45,000 60.000 $1 per unit 35,000 140,000 Fixed 22.000 S wages and salaries 66,000 22,000 $ 22.000 14,000 $ Utilities 14,000 $ 14.000 42,000 1,200 $ 1,200 $ 1,200 3,600 Insurance S 1,500 $ 1,500 S 4,500 Depreication Miscellaneous 1.500 9.000 3.000 c 3,000 S 3,000 Budgeted Selling and Admin Expense 76,700 S 86,700 S 101.700 S 265,100 Part 1f Selling and Admin Expense Payment April May June Quarter Variable $1 per unit 35,000 45,000 60,000 140,000 Fixed 22,000 S 22,000 wages and salaries 22.000 S 66,000 Utilities 14,000 $ 42.000 14.000 S 14,000 Insurance Depreication Miscellaneous 3,000 9,000 3,000 3,000 257.000 Budgeted Selling and Admin Expense Payment Cash Budget Part 5 April ay June Quarter 14,000 10,250 $ $ 230,000 $ 286,000 $ 370,000 $ 886,000 Beginning Balance 10,000 $ 14,000 Add: Expected Collection Cash Available 244,000 $ 296,250 $ 380,000 $ 900,000 Cash paid for: 195.750 $256.250 $ 251,250 $ Merchandise 703,250 35,000 $ 45,000 $ Sales Commission 60,000 $ 140,000 22,000 S wages and salaries 22,000 $ 22,000 $ 66,000 Utilities 14,000 $ 14,000 $ 14,000 $ 42,000 Miscellaneous 3,000 $ 3,000 $ 3,000 S 9,000 Land 25,000 25,000 Dividend 12,000 12.000 Interest Payment Total cash Payment 281,750 365,250 350,250 $997,250 Cash Excess/(Deficiency) 29,750 $ -37,750 $ -69,000 $ 97.250 Financing: 127,000 $ -16,000 $ -2,860 S 48,000 S 79,000 $48,000*1% Borrowing 480 Apr -16,000 $ 2,860 $ ($48,000+$79,000)*1 % 1,270 May Repayment Interest Payment 1.110 Jun ($48,000+$79,000-$16,000)*1% 10,000 $ 10,890 $ Net Ending Cash Balance 10,250 $ 10,890 Part 6 Budgeted Income Statement Sales Revenue $1,120,000 Less: Variable Expense $ -700,000 140,000 Units $5 Goods Sold Cost S -140,000 Commission Gross Margin 280,000 Less: Selling and Admin Expense wages and salaries 66,000 Utilities 42,000 Insurance 3,600 Depreication 4,500 Miscellaneous 9,000 $ 125,100 Total Operating Expense Net Operating Income 154.900 Less: Interest Expense -2,860 Net Income 152,040 Budgeted Balance Sheet Part 7 Assets Cash S 10,890 Accounts receivable S 450,000 36,000 $5 S 180.000 Inventory Prepaid insurance $14,400-$3,600 S 10,800 Property and equipment (net) $172,700+$25,000-$4,500 193,200 Total assets 844,890 Liabilities and Stockholders' Equity S Accounts payable 105,000 Dividends payable S 12,000 Note Payable 111,000 Cammon stock 300,000 $ 316,890 Retained earnings Total liabilities and stockholders' equity RE+Net Income-Dividend 844,890 $ Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Sales Budget Part 1 April May June Quarter July Aug Budgeted Na of Units Budgeted Sales Price 35,000 45,000 60,000 140,000 40,000 36,000 8 S 8 S 8 S 8 S $ 288,000 Budgeted Sale S 280,000 $ 360,000 $ 480,000 $1,120,000 $ 320,000 Schedule Part 2 Expected cash Collection April May June Ouarter Accounts Receivable Accounts Receivoble Feb 48,000 S 48,000 112,000 56,000 168.000 $ Mar April Sale 70,000 S 140,000 S 70,000 $ 280.000 $ 90,000 180,000 270,000 $ $ 120,000 120,000 $ May Sale 90.000 June Sale 360,000 Total Collection 230,000 S 286,000 $ 370,000 S 886,000 $ 450,000 Purchase Budget Part 3 April July May June Quarter AuF Budgeted Sale unit ,000 35,000 45,000 60,000 000 40.000 Add:Desired Inventory Ending 90% 40.500 54,000 36.000 32,400 36,000 Total need 75,500 99.000 96.000 176,000 72,400 Less: Beginning Inventory Budgeted Purchase Units 36.000 -31,500 -40,500 54,000 31,500 42.000 44,000 58.500 144.500 5.00 5.00 $ 722.500 5.00 S Per unit Cost 5.00 S 220,000 $ 292,500 $210.000 Budgeted Purchase Cost Scheuld of Expected payment Part 4 April ay June Quarter Accounts Payble S Accounts Payable 85,750 85,750 $ 220,000 146,250 S 146,250 292,500 s 105,000 $ 105,000 $ 110,000 S110,000 April Pur May Pur June Pur 105,000 195,750 $ 256,250 $ 251,250 $ 703,250 $ Budgeted Payment 105,000 Part 1e Selling and Admin Expense April ay June Ouarter Variable 45,000 60.000 $1 per unit 35,000 140,000 Fixed 22.000 S wages and salaries 66,000 22,000 $ 22.000 14,000 $ Utilities 14,000 $ 14.000 42,000 1,200 $ 1,200 $ 1,200 3,600 Insurance S 1,500 $ 1,500 S 4,500 Depreication Miscellaneous 1.500 9.000 3.000 c 3,000 S 3,000 Budgeted Selling and Admin Expense 76,700 S 86,700 S 101.700 S 265,100 Part 1f Selling and Admin Expense Payment April May June Quarter Variable $1 per unit 35,000 45,000 60,000 140,000 Fixed 22,000 S 22,000 wages and salaries 22.000 S 66,000 Utilities 14,000 $ 42.000 14.000 S 14,000 Insurance Depreication Miscellaneous 3,000 9,000 3,000 3,000 257.000 Budgeted Selling and Admin Expense Payment Cash Budget Part 5 April ay June Quarter 14,000 10,250 $ $ 230,000 $ 286,000 $ 370,000 $ 886,000 Beginning Balance 10,000 $ 14,000 Add: Expected Collection Cash Available 244,000 $ 296,250 $ 380,000 $ 900,000 Cash paid for: 195.750 $256.250 $ 251,250 $ Merchandise 703,250 35,000 $ 45,000 $ Sales Commission 60,000 $ 140,000 22,000 S wages and salaries 22,000 $ 22,000 $ 66,000 Utilities 14,000 $ 14,000 $ 14,000 $ 42,000 Miscellaneous 3,000 $ 3,000 $ 3,000 S 9,000 Land 25,000 25,000 Dividend 12,000 12.000 Interest Payment Total cash Payment 281,750 365,250 350,250 $997,250 Cash Excess/(Deficiency) 29,750 $ -37,750 $ -69,000 $ 97.250 Financing: 127,000 $ -16,000 $ -2,860 S 48,000 S 79,000 $48,000*1% Borrowing 480 Apr -16,000 $ 2,860 $ ($48,000+$79,000)*1 % 1,270 May Repayment Interest Payment 1.110 Jun ($48,000+$79,000-$16,000)*1% 10,000 $ 10,890 $ Net Ending Cash Balance 10,250 $ 10,890 Part 6 Budgeted Income Statement Sales Revenue $1,120,000 Less: Variable Expense $ -700,000 140,000 Units $5 Goods Sold Cost S -140,000 Commission Gross Margin 280,000 Less: Selling and Admin Expense wages and salaries 66,000 Utilities 42,000 Insurance 3,600 Depreication 4,500 Miscellaneous 9,000 $ 125,100 Total Operating Expense Net Operating Income 154.900 Less: Interest Expense -2,860 Net Income 152,040 Budgeted Balance Sheet Part 7 Assets Cash S 10,890 Accounts receivable S 450,000 36,000 $5 S 180.000 Inventory Prepaid insurance $14,400-$3,600 S 10,800 Property and equipment (net) $172,700+$25,000-$4,500 193,200 Total assets 844,890 Liabilities and Stockholders' Equity S Accounts payable 105,000 Dividends payable S 12,000 Note Payable 111,000 Cammon stock 300,000 $ 316,890 Retained earnings Total liabilities and stockholders' equity RE+Net Income-Dividend 844,890 $