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week 4 Solution to Cash Budget individual assignment

week 4 Solution to Cash Budget individual assignment -...

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Income Statement For the Quarter Ended August 31 June July August Sales 700,000 400,000 400,000 Cost of Goods Sold (1-.38) 434,000 248,000 248,000 Gross Profit 266,000 152,000 152,000 Operating Expenses Other variable expenses (4%) Rent, property tax, misc. payroll & other Depreciation Expense Total operating expenses Operating Income (Loss) Interest Expense Net Income Betterbuy Electronics Cash Budget For the Quarter Ended August 31 June July August Collections from customers Cash Sales (10%) April Sales May Sales June Sales July Sales Total Cash collected from customers Cash Disbursements: Purchase Merchandise Salaries, wages, & commissions Other variable expenses Rent, property tax, misc. payroll & other Total operating cash disbursements Net operating cash flows Pay for fixtures Net cash inflow (outflow) Beginning cash balance Cash available/shortage Desired cash balance Cash needed/available to pay loan Borrow Interest payment Ending cash balance
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Interest Expense Borrowed Interest @ 10% June Loan balance june 30
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Unformatted text preview: Interest @ 10% July Paid principal Paid Interest Loan balance July 31 Interest @ 10% August Paid principal & interest Loan balance August 31 total May June July Purchases 434,000 248,000 248,000 Accounts Receivable: July Sales 72,000 August Sales 360,000 432,000 Inventory: Beginning Inventory June purchases July purchases August purchases Available Sold Accounts Payable: Beginning Balance Purchases Paid on fixtures paid on purchases Owners equity: Beginning balance Net income Betterbuy Electronics Balance Sheet 31-Aug Current Assets Cash- Accounts receivable Inventory Total Current Assets Furniture & Fixtures Accumulated Depreciation Total Assets Accounts Payable- Note Payable- Total Liabilities- Equity- Total Liabilities & Owners' Equity (1) Quarter 1,500,000 930,000 570,000 Quarter August 186,000 25346 48671 29000 20862 40519-382000 23104 44595-353000-25000-378000 376000-248000-223000-55000 29000-121000...
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