1) | Shilow company | ||||||
Schedule of Expected cash collections | |||||||
April | May | June | Quarter | ||||
Cash sales | 46200 | 49200 | 64200 | 159600 | |||
credit sales | 24,400 | 30800 | 32800 | 88,000 | |||
total collections | 70600 | 80000 | 97000 | 247600 | |||
Accounts receivable = 107000*40%= | 42800 | ||||||
2) | Merchandise purchase budget | ||||||
April | May | June | Quarter | ||||
Budgeted cost of goods sold | 57750 | 61500 | 80250 | 199500 | |||
Add Desired ending inventory | 49200 | 64200 | 34,800 | 34,800 | |||
total needs | 106950 | 125700 | 115050 | 234300 | |||
less beginning inventory | 46,200 | 49,200 | 64,200 | 46,200 | |||
Required purchases | 60,750 | 76,500 | 50,850 | 188,100 | |||
3) | Schedule of Cash disbursements-Merchandise purhcase | ||||||
April | May | June | Quarter | ||||
March purchases | 27,675 | 27,675 | |||||
April purchases | 30375 | 30,375 | 60750 | ||||
May purchases | 38250 | 38,250 | 76500 | ||||
June purchases | 25425 | 25425 | |||||
total disbursements | 58,050 | 68625 | 63675 | 190,350 | |||
4) | Cash budget | ||||||
April | May | June | Quarter | ||||
Beginning cash balance | 8,600 | 4,290 | 4,505 | 8,600 | |||
Add Cash collectiosn | 70600 | 80000 | 97000 | 247600 | |||
total cas h available | 79,200 | 84,290 | 101,505 | 256,200 | |||
less cash disbursements | |||||||
for inventory | 58,050 | 68625 | 63675 | 190,350 | |||
for expenses | 17260 | 18160 | 22660 | 58080 | |||
for equipment | 2,600 | 0 | 0 | 2,600 | |||
total cash disbursements | 77,910 | 86785 | 86335 | 251,030 | |||
Excess(Deficiency)of cash | 1,290 | -2,495 | 15,170 | 5,170 | |||
Financing: | |||||||
Borrowings | 3,000 | 7,000 | 0 | 10,000 | |||
Repayments | 0 | -10,000 | -10,000 | ||||
interest | 0 | -230 | -230 | ||||
total financing | 1,000 | 7,000 | -10230 | -230 | |||
Ending cash balance | 4,290 | 4,505 | 4,940 | 4,940 | |||
interest = 3000*1%*3= | 90 | ||||||
7000*1%*2= | 140 | ||||||
230 | |||||||
5) | income statement | ||||||
Sales | 266000 | ||||||
cost of goods sold | |||||||
Beginning inventor | 46,200 | ||||||
Add purchases | 188,100 | ||||||
goods available for sale | 234,300 | ||||||
ending inventory | 34,800 | 199,500 | |||||
Gross margin | 66,500 | ||||||
Selling and administrative expense | |||||||
commissions | 31920 | ||||||
rent | (3400*3) | 10200 | |||||
Depreciation | (891*3) | 2673 | |||||
other expenses | 15960 | 60753 | |||||
net operating | 5,747 | ||||||
interest expense | -230 | ||||||
net income | 5,517 | ||||||
Balance sheet | |||||||
Assets | |||||||
current assets | |||||||
Cash | 4,940 | ||||||
Accounts receivable | 42,800 | ||||||
inventory | 34,800 | ||||||
total current assets | 82,540 | ||||||
Building And equipment ,net | 118727 | ||||||
total Assets | 201,267 | ||||||
liabilities And stockholder 's Equity | |||||||
Accounts payable | 25,425 | ||||||
total current assets | 25,425 | ||||||
Stockholder's Equity | |||||||
Capital stock | 150,000 | ||||||
Retained earnings | 25,842 | 175,842 | |||||
total liabilites & stockholders Equity | 201,267 |
Problem 8-29 Completing a Master Budget (LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] The following data relate...
Problem 8-29 Completing a Master Budget (LO8-2, L08-4, LO8-7, LO8-8, LO8-9, LO8-10] The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash Accounts receivable Inventory Building and equipment, net Accounts payable Common stock Retained earnings $ 7,400 $ 19,600 $ 39,000 $ 126,000 $ 23, 175 $ 150,000 $ 18,825 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April...
Problem 8-29 Completing a Master Budget (LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, L08-10) The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 7,5ee Accounts receivable $ 20,eee Inventory $ 39,600 Building and equipment, net $127, zee Accounts payable $ 23,550 Common stock $150, eee Retained earnings $ 20,750 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May...
Problem 8-29 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 7,800 Accounts receivable $ 21,200 Inventory $ 41,400 Building and equipment, net $ 130,800 Accounts payable $ 24,675 Common stock $ 150,000 Retained earnings $ 26,525 The gross margin is 25% of sales. Actual and budgeted sales data: March (actual) $ 53,000 April $...
PROBLEM 8-29 Completing a Master Budget LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, L08-10 The following data relate to the operations of Shilow Company, a wholesale distributor of cor- sumer goods: Current assets as of March 31: $8,000 Cash $20,000 Accounts receivable Inventory.... . $36,000 $120,000 $21,750 Bulding and equipment, net. Accounts payable. . Common stock. Retained earnings. $150,000 $12,250 The gross margin is 25% of sales. a. Master Budgeting Actual and budgeted sales data March lactua $50,000 $60,000 $72.000 590.000 $48.000...
PROBLEM 8–27 Completing a Master Budget [LO8–2, LO8–4, LO8–7, LO8–8, LO8–9, LO8–10] The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,000 Accounts receivable . . . . . . . . . . . . . . $20,000...
Problem 8-29 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 8,300 Accounts receivable $ 23,200 Inventory $ 44,400 Building and equipment, net $ 126,000 Accounts payable $ 26,550 Common stock $ 150,000 Retained earnings $ 25,350 The gross margin is 25% of sales. Actual and budgeted sales data: March (actual) $ 58,000 April $...
Problem 8-29 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 9,200 Accounts receivable $ 26,800 Inventory $ 49,800 Building and equipment, net $ 104,400 Accounts payable $ 29,925 Common stock $ 150,000 Retained earnings $ 10,275 The gross margin is 25% of sales. Actual and budgeted sales data: March (actual) $ 67,000 April $...
Problem 8-29 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 7,400 Accounts receivable $ 19,600 Inventory $ 39,000 Building and equipment, net $ 126,000 Accounts payable $ 23,175 Common stock $ 150,000 Retained earnings $ 18,825 The gross margin is 25% of sales. Actual and budgeted sales data: March (actual) $ 49,000 April $...
Completing a master budget Problem 8-31 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: a. As of December 31 (the end of the prior quarter), the company's general ledger showed the following account balances: $ Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Common...
The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash Accounts receivable Inventory Building and equipment, net Accounts payable Common stock Retained earnings $ 8,600 $ 24,400 $ 46,200 $ 118,800 $ 27,675 $ 150,000 $ 20,325 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May June July $ 61,000 $ 77,000 $ 82,000 $ 107,000 $ 58,000...