Question

Specific instructions: Study the required resources of the module and particularly the illustrative exercise 16.1 to perform this exercise. Read carefully the financial and operational data of the JKL Corporation offered below and use them to prepare the budget for: Collections for sales for the quarter (10 points) Purchases for the quarter (10 points) Disbursements on purchases for the quarter (10 points) . Disbursements of administrative and sales expenses for the quarter (10 points) Financial and operational data of Corporación JKL The JKL Corporation is dedicated to the business of buying and selling and is designing its master budget for the next quarter of operations from April to June of 20xx. The data collected and necessary to work with such a budget are the following: A. Certain data from the State s TATE (Balance Sheet) on March 31, 20 xx: DI $ 20,000 Cash Accounts receivable 64,000 Inventory 15,400 Buildings and equipment (net depreciation) 225,000 $ 23,400 Debts to pay Long term debts 90,000 Common Shares - Capital 150,000 Retained earnings 61,000 $324,400 Totals $ 324,400
error = in expected sales (table b) in the month of March should say $ 80,000 and NOT $ 8,000.
Remember: do not round the numbers

Answer 1

Schedule of Expected Cash Collections
	April	May	June	Quarter
Cash Sales (20%)	$   12,800.00	$ 12,600.00	$      15,400.00	$   40,800.00
Credit Sales
March	$   64,000.00			$   64,000.00
April		$ 51,200.00		$   51,200.00
May			$      50,400.00	$   50,400.00
Total Cash Collections	$   76,800.00	$ 63,800.00	$      65,800.00	$ 206,400.00

Merchandise Purchase Budget
	April	May	June	Quarter
Sales	$   64,000.00	$ 63,000.00	$      77,000.00	$ 204,000.00
Cost of Goods Sold @67%	$   42,880.00	$ 42,210.00	$      51,590.00	$ 136,680.00
Add : Desired Ending Inventory	$   10,552.50	$ 12,897.50	$         9,212.50	$      9,212.50
Total Needs	$   53,432.50	$ 55,107.50	$      60,802.50	$ 145,892.50
Less Beginning Inventory	$   15,400.00	$ 10,552.50	$      12,897.50	$   15,400.00
Merchandise Purchase	$   38,032.50	$ 44,555.00	$      47,905.00	$ 130,492.50

Cash Disbursement for Purchases

	April	May	June	Quarter
Accounts Payable, March	$   23,400.00			$   23,400.00
April Purchases	$   15,213.00	$ 22,819.50		$   38,032.50
May Purchases		$ 17,822.00	$      26,733.00	$   44,555.00
June Purchases			$      19,162.00	$   19,162.00
Total Cash Disbursements	$   38,613.00	$ 40,641.50	$      45,895.00	$ 125,149.50

Cash Disbursement for Selling and administrative expenses

	April	May	June	Quarter
Salaries	$     8,500.00	$   8,500.00	$         8,500.00	$   25,500.00
Advertising	$     4,100.00	$   4,100.00	$         4,100.00	$   12,300.00
Residual Expenses	$     5,120.00	$   5,040.00	$         6,160.00	$   16,320.00
Total Cash Disbursements	$   17,720.00	$ 17,640.00	$      18,760.00	$   54,120.00

Cash Budget
	April	May	June	Quarter
Beginning Cash	$   20,000.00	$ 20,467.00	$      20,925.50	$   20,000.00
Total Cash Collections	$   76,800.00	$ 63,800.00	$      65,800.00	$ 206,400.00
Total Cash Available	$   96,800.00	$ 84,267.00	$      86,725.50	$ 226,400.00
Deduct : Disbursements
For Merchandise purchase	$   38,613.00	$ 40,641.50	$      45,895.00	$ 125,149.50
Selling Expense	$   17,720.00	$ 17,640.00	$      18,760.00	$   54,120.00
Purchase of Equipment	$   26,000.00	$ 16,000.00		$   42,000.00
Dividend Paid			$         2,900.00	$      2,900.00
Total Disbursements	$   82,333.00	$ 74,281.50	$      67,555.00	$ 224,169.50
Excess (Deficiency) of cash	$   14,467.00	$   9,985.50	$      19,170.50	$      2,230.50
Financing
Borrowing	$     6,000.00	$ 11,000.00	$         1,000.00	$   18,000.00
Interest		$        -60.00	$           -170.00	$        -230.00
Repayment				$                   -
Total Financing	$     6,000.00	$ 10,940.00	$            830.00	$   17,770.00
Ending Balance	$   20,467.00	$ 20,925.50	$      20,000.50	$   20,000.50