PROJECT A -
ACCT 505
Student Name:
Jaykumar Patel
SALES BUDGET:
Budgeted unit sales
Selling price per unit
Total Sales
April
65,000
$10
$ 650,000
May
100,000
$10
$ 1,000,000
SCHEDULE OF EXPECTED CASH COLLECTIONS:
April
February sales (10%)
$ 26,000
March sales (70%) next (10%)
280,000 $
April sales
130,000
May sales
June sales
Total Cash Collections
$ 436,000 $
June
Quarter
215,000
$10
$ 2,150,000
65,000
700,000
100,000
865,000
Quarter
26,000
320,000
650,000
900,000
100,000
$ 1,996,000
May
100,000
June
50,000
Quarter
215,000
20,000
120,000
40,000
80,000
$320,000
12,000
62,000
20,000
42,000
$168,000
72,000
287,000
86,000
201,000
$804,000
BUDGETED CASH DISBURSEMENTS FOR MERCHANDISE PURCHASES:
April
May
June
Accounts payable
$ 100,000
April purchases
158,000 $ 158,000
May purchases
160,000 $ 160,000
June purchases
84,000
Total cash payments
$ 258,000 $ 318,000 $ 244,000
Quarter
$100,000
316,000
320,000
84,000
$ 820,000
MERCHANDISE PURCHASES BUDGET:
April
Budgeted unit sales
65,000
Add desired ending inventory
(40% of the next month's unit)
40,000
Total needs
105,000
Less beginning inventory
26,000
Required purchases
79,000
Cost of purchases @ $4 per unit
$316,000
May
June
50,000
$10
500,000
$
40,000
455,000
200,000
695,000
EARRINGS UNLIMITED
CASH BUDGET
FOR THE THREE MONTHS ENDING JUNE 30
April
May
June
$ 74,000 $
50,000 $
50,000
Cash balance
436,000
695,000
865,000
Add collections from customers
Total cash available
$ 510,000 $ 745,000 $ 915,000
Less Disbursements
Quarter
74,000
1,996,000
$ 2,070,000
$
Merchandise purchases
Advertising
Rent
Salaries
Commissions
Utilities
Equipment purchases
Dividends paid
Total Disbursements
$ 258,000
200,000
18,000
106,000
26,000
7,000
15,000
$ 630,000
Excess (deficiency) of receipts
over disbursements
Financing:
Borrowings
Repayments
Interest
Total financing
318,000 $
200,000
18,000
106,000
40,000
7,000
16,000
0
705,000 $
$ (120,000) $
40,000
$ 170,000
10,000
Cash balance, ending
$ 170,000
10,000
50,000
50,000
244,000 $ 820,000
200,000
600,000
18,000
54,000
106,000
318,000
20,000
86,000
7,000
21,000
40,000
56,000
0
15,000
635,000 $ 1,970,000
280,000
0 $
(180,000)
(5,300)
(185,300) $
94,700
EARRINGS UNLIMITED
BUDGETED INCOME STATEMENT
FOR THE THREE MONTHS ENDED JUNE 30
$ 2,150,000
Sales
Variable expenses:
Cost of goods sold
Commissions
Contribution Margin
Fixed expenses:
Advertising
Rent
Salaries
Utilities
Insurance
Depreciation
Net operating income
Interest expense
Net income
$
$
860,000
86,000
$
$
$
$
$
$
600,000
54,000
318,000
21,000
9,000
42,000
$ 946,000
$ 1,204,000
$ 1,044,000
$ 160,000
$
(5,300)
$ 154,700
EARRINGS UNLIMITED
BUDGETED BALANCE SHEET
JUNE 30
Assets:
Cash
Accounts receivable (see below)
Inventory
Prepaid insurance
$
$
$
$
94,700
500,000
48,000
12,000
100,000
180,000
(180,000)
(5,300)
(5,300)
94,700
Property and equipment, net
Total assets
$ 964,000
$ 1,618,700
Liabilities and Stockholders' Equity
Accounts payable, purchases
Dividends payable
Capital stock
Retained earnings (see below)
Total liabilities and stockholders' equity
$
84,000
$
15,000
$ 800,000
$ 719,700
$ 1,618,700
Accounts receivable at June 30:
May sales x 10%
June sales x 80%
Total
$
$
$
100,000
400,000
500,000
Retained earnings at June 30:
Balance, March 31
Add net income
Total
Less dividends declared
Balance, June 30
$
$
$
$
$
580,000
154,700
734,700
15,000
719,700
PROJECT A
Student Name:
Jaykumar Patel
SALES BUDGET:
Budgeted unit sales
Selling price per unit
Total Sales
April
65000
10
=C7*C8
SCHEDULE OF EXPECTED CASH COLLECTIONS:
April
February sales (10%)
=(26000*0.1)*10
March sales (70%) next (10%)
=(40000*0.7)*10
April sales
=(65000*0.2)*10
May sales
June sales
Total Cash Collections
=SUM(C14:C18)
May
100000
10
=D7*D8
May
=(40000*0.1)*10
=(65000*0.7)*10
=(100000*0.2)*10
=SUM(D14:D18)
MERCHANDISE PURCHASES BUDGET:
April
Budgeted unit sales
Add desired ending inventory
(40% of the next month's unit)
Total needs
Less beginning inventory
Required purchases
Cost of purchases @ $4 per unit
May
65000
100000
=(100000*0.4)
=SUM(C24:C26)
=(65000*0.4)
=C27-C28
=C29*4
=(50000*0.4)
=SUM(D24:D26)
=(100000*0.4)
=D27-D28
=D29*4
BUDGETED CASH DISBURSEMENTS FOR MERCHANDISE PURCHASES:
April
May
Accounts payable
100000
April purchases
=316000*0.5
=316000*0.5
May purchases
=320000*0.5
June purchases
Total cash payments
=SUM(C35:C38) =SUM(D35:D38)
Cash balance
Add collections from customers
Total cash available
EARRINGS UNLIMITED
CASH BUDGET
FOR THE THREE MONTHS ENDING JUNE 30
April
May
74000
50000
436000
695000
=SUM(C46:C47) =SUM(D46:D47)
Less Disbursements
Merchandise purchases
258000
318000
Advertising
Rent
Salaries
Commissions
Utilities
Equipment purchases
Dividends paid
Total Disbursements
Excess (deficiency) of receipts
over disbursements
Financing:
Borrowings
Repayments
Interest
Total financing
Cash balance, ending
200000
18000
106000
26000
7000
200000
18000
106000
40000
7000
16000
15000
0
=SUM(C51:C58) =SUM(D51:D58)
=C48-C59
=D48-D59
=120000+50000 10000
=SUM(C64:C66) =SUM(D64:D66)
=C48-C59+C67
=D48-D59+D67
EARRINGS UNLIMITED
BUDGETED INCOME STATEMENT
FOR THE THREE MONTHS ENDED JUNE 30
Sales
Variable expenses:
Cost of goods sold
Commissions
Contribution Margin
Fixed expenses:
Advertising
Rent
Salaries
Utilities
Insurance
Depreciation
Net operating income
Interest expense
Net income
=215000*4
=(215000*0.04*10)
=200000*3
=18000*3
=106000*3
=7000*3
=3000*3
=14000*3
EARRINGS UNLIMITED
BUDGETED BALANCE SHEET
JUNE 30
Assets:
Cash
Accounts receivable (see below)
Inventory
Prepaid insurance
Property and equipment, net
Total assets
Liabilities and Stockholders' Equity
Accounts payable, purchases
Dividends payable
Capital stock
Retained earnings (see below)
Total liabilities and stockholders' equity
Accounts receivable at June 30:
May sales x 10%
June sales x 80%
Total
Retained earnings at June 30:
Balance, March 31
Add net income
Total
Less dividends declared
Balance, June 30
June
Quarter
=SUM(C7:E7)
10
=F7*F8
June
Quarter
=SUM(C14:E14)
=SUM(C15:E15)
=SUM(C16:E16)
=SUM(C17:E17)
=SUM(C18:E18)
=SUM(F14:F18)
50000
10
=E7*E8
=(65000*0.1)*10
=(100000*0.7)*10
=(50000*0.2)*10
=SUM(E14:E18)
50000
June
Quarter
=SUM(C24:E24)
=(30000*0.4)
=SUM(E24:E26)
=(50000*0.4)
=E27-E28
=E29*4
=SUM(C26:E26)
=SUM(C27:E27)
=SUM(C28:E28)
=SUM(C29:E29)
=SUM(C30:E30)
June
Quarter
=SUM(C35:E35)
=SUM(C36:E36)
=SUM(C37:E37)
=SUM(C38:E38)
=SUM(C39:E39)
June
50000
865000
=SUM(E46:E47)
Quarter
74000
=SUM(C47:E47)
=SUM(F46:F47)
244000
=SUM(C51:E51)
=320000*0.5
=168000*0.5
=SUM(E35:E38)
200000
18000
106000
20000
7000
40000
0
=SUM(E51:E58)
=SUM(C52:E52)
=SUM(C53:E53)
=SUM(C54:E54)
=SUM(C55:E55)
=SUM(C56:E56)
=SUM(C57:E57)
=SUM(C58:E58)
=SUM(F51:F58)
=E48-E59
=F48-F59
0
-180000
=-((170000*0.01*3)+(10000*0.01*2))
=SUM(E64:E66)
=SUM(C64:E64)
-180000
-5300
=SUM(F64:F66)
=E48-E59+E67
=F48-F59+F67
2150000
=D78+D79
=E76-E79
=SUM(D82:D87)
=E80-E87
-5300
=SUM(E88:E89)
94700
500000
=12000*4
=21000-9000
= 950000+56000-42000
=SUM(E99:E103)
=168000*0.5
15000
800000
719700
=SUM(E109:E112)
=1000000*0.1
=500000*0.8
=SUM(E117:E118)
580000
154700
=SUM(E123:E124)
15000
=E125-E126
