Project Part A - AC505 - PROJECT A - Case 9-30 Student...

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PROJECT A - Case 9-30 Student Name: Vaishnavi Reddy. Bommi SALES BUDGET: April May June Quarter Budgeted unit sales 65,000 100,000 50,000 215,000 Selling price per unit 10 10 10 10 Total Sales 650,000 1,000,000 500,000 2,150,000 SCHEDULE OF EXPECTED CASH COLLECTIONS: April May June Quarter February sales 26,000 26,000 March sales 280,000 40,000 320,000 April sales 130,000 455,000 65,000 650,000 May sales 200,000 700,000 900,000 June sales 100,000 100,000 Total Cash Collections 436,000 695,000 865,000 1,996,000 MERCHANDISE PURCHASES BUDGET: April May June Quarter Budgeted unit sales 65,000 100,000 50,000 215,000 Add desired ending inventory 40,000 20,000 12,000 72,000 Total needs 105,000 120,000 62,000 287,000 Less beginning inventory 26,000 40,000 20,000 86,000 Required purchases 79,000 80,000 42,000 201,000 Cost of purchases @ $4 per unit 316,000 320,000 168,000 804,000 BUDGETED CASH DISBURSEMENTS FOR MERCHANDISE PURCHASES: April May June Quarter Accounts payable 100,000 100,000 April purchases 158,000 158,000 316,000 May purchases 160,000 160,000 320,000 June purchases 84,000 84,000 Total cash payments 258,000 318,000 244,000 820,000 EARRINGS UNLIMITED CASH BUDGET FOR THE THREE MONTHS ENDING JUNE 30 April May June Quarter Cash balance 74,000 50,000 50,000 74,000 Add collections from customers 436,000 695,000 865,000 1,996,000 Total cash available 510,000 745,000 915,000 2,070,000 Less Disbursements Merchandise purchases 258,000 318,000 244,000 820,000 Advertising 200,000 200,000 200,000 600,000
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Rent 18,000 18,000 18,000 54,000 Salaries 106,000 106,000 106,000 318,000 Commissions 26,000 40,000 20,000 86,000 Utilities 7,000 7,000 7,000 21,000 Equipment purchases 16,000 40,000 56,000 Dividends paid 15,000 15,000 Total Disbursements 630,000 705,000 635,000 1,970,000 Excess (deficiency) of receipts over disbursements (120,000) 40,000 280,000 100,000 Financing: Borrowings 170,000 10,000 180,000 Repayments (180,000) (180,000) Interest (5,300) (5,300) Total financing 170,000 10,000 (185,300) (5,300) Cash balance, ending 50,000 50,000 94,700 94,700 EARRINGS UNLIMITED BUDGETED INCOME STATEMENT FOR THE THREE MONTHS ENDED JUNE 30 Sales 2,150,000
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Project Part A - AC505 - PROJECT A - Case 9-30 Student...

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