Sales Budget | ||||||||||
November$ | December$ | January$ | February$ | March$ | Q1$ | April | ||||
Company - will increase 2% Month sales | ||||||||||
Revenue | 2,30,000 | 2,34,600 | 2,39,292 | 2,44,078 | 2,48,959 | 7,32,329 | 2,53,939 | |||
Cash sales | 15% | 34,500 | 35,190 | 35,894 | 36,612 | 37,344 | 1,09,849 | |||
Credit sales | 85% | 1,95,500 | 1,99,410 | 2,03,398 | 2,07,466 | 2,11,615 | 6,22,480 | |||
Cash Receipt Budget | ||||||||||
Cash sales | 34,500 | 35,190 | 35,894 | 36,612 | 37,344 | 1,09,849 | ||||
Credit Sales - pattern | ||||||||||
12% collected in same month | 23,460 | 23,929 | 24,408 | 24,896 | 25,394 | 74,698 | ||||
74% collected following Month | 1,44,670 | 1,47,563 | 1,50,515 | 1,53,525 | 4,51,603 | |||||
14% collected second month following sale | 27,370 | 27,917 | 28,476 | 83,763 | ||||||
Total receipt | 57,960 | 2,03,789 | 2,35,235 | 2,39,940 | 2,44,738 | 7,19,913 | ||||
Purchase Budget | ||||||||||
Sales ( as above) | 2,30,000 | 2,34,600 | 2,39,292 | 2,44,078 | 2,48,959 | 7,32,329 | 2,53,939 | |||
Cost of Goods sold =60% of sales | 1,38,000 | 1,40,760 | 1,43,575 | 1,46,447 | 1,49,376 | 4,39,398 | 1,52,363 | |||
Add= Closing Inventory | ||||||||||
25% if next month projected COGS | 35,190 | 35,894 | 36,612 | 37,344 | 38,091 | 38,091 | ||||
Total Purchase unit | 1,73,190 | 1,76,654 | 1,80,187 | 1,83,791 | 1,87,466 | 4,77,488 | ||||
Less - Opening Inventory | -35,190 | -35,894 | -36,612 | -37,344 | -35,190 | |||||
Total Purchase Budget | 1,41,464 | 1,44,293 | 1,47,179 | 1,50,123 | 4,42,298 | |||||
Cash disposal - Purchase Budget | ||||||||||
Total Purchase Budget | 1,44,293 | 1,47,179 | 1,50,123 | 4,42,298 | ||||||
12% of each month Purchae paid during the month |
17,315 | 17,661 | 18,015 | 53,076 | ||||||
Reminder (100-12%)=88% based on earlier month |
1,24,488 | 1,26,978 | 1,29,517 | 1,32,108 | ||||||
Total cash payment - purchase=A | 1,41,803 | 1,44,639 | 1,47,532 | 1,85,184 | ||||||
Other cost as per Question | ||||||||||
Salaries | 30,000 | 30,000 | 30,000 | 90,000 | ||||||
Advertisement | 6,000 | 6,000 | 6,000 | 18,000 | ||||||
Admin Salary | 11,000 | 11,000 | 11,000 | 33,000 | ||||||
Interest on Bond ( 6 Month due on feb)=6*$1250 | 7,500 | 7,500 | ||||||||
Property tax ( Quarterly pais)=$4000*3 | 12,000 | 12,000 | ||||||||
Sales Commission=3%-preceding Month | 7,038 | 7,179 | 7,322 | 7,469 | ||||||
Total of Other cost=B | 54,038 | 61,679 | 66,322 | 1,67,969 | ||||||
Total cash payment( A+B) | 1,95,841 | 2,06,318 | 2,13,855 | 3,53,152 |
Amnt($) | |||
Opening Cash balance | 1,40,000 | ||
Less-Minimum Cash Balance | 20,000 | ||
Cash available - Further Investment | 1,20,000 | ||
Projection from sales of Marketable | |||
Securities | 55,000 | ||
cash available | 1,75,000 | ||
Less - Further Capex Investment | 2,00,000 | ||
Shortfall - Borrowing from Market | -25,000 |
Finally Summary of cash Budget | January$ | February$ | March$ | Q1$ | |||||
Cash Receipt | 2,35,235 | 2,39,940 | 2,44,738 | 7,19,913 | |||||
Cash Payment | -1,95,841 | -2,06,318 | -2,13,855 | -6,16,014 | |||||
Net Cash Balance | 39,394 | 33,622 | 30,884 | 1,03,899 | |||||
Add | |||||||||
Sale of Marketable security | 55,000 | 55,000 | |||||||
Additional fund required as above | 25,000 | 25,000 | |||||||
Less - Capex Investment | -2,00,000 | -2,00,000 | |||||||
Less - Repayment of Loan | -25,000 | -25,000 | |||||||
Less - Interest on Loan@ 6%*$25000*3/12 | -375 | -375 | |||||||
Less - Payment of dividend | -1,00,000 | -1,00,000 | |||||||
Cash balance position -Qtr end | -1,41,476 | ||||||||
Opening Cash balance | 1,40,000 | ||||||||
Closing Balance with OD | -1,476 |
You have been engaged as a consultant to design a master budget model and then to...
You have been engaged as a consultant to design a master budget model and then to assist Helping Hand Corp. in making some management decisions based on that master budget. Helping Hand is a small, rapidly growing wholesaler of consumer electronic products. The company's main product lines are small kitchen appliances and power tools. The marketing manager has recently completed a sales forecast. She believes the company's sales will increase by 2 percent each month over the previous month's sales...
You have been engaged as a consultant to design a master budget model and then to assist Helping Hand Corp. in making some management decisions based on that master budget. Helping Hand is a small, rapidly growing wholesaler of consumer electronic products. The company’s main product lines are small kitchen appliances and power tools. The marketing manager has recently completed a sales forecast. She believes the company’s sales will increase by 2 percent each month over the previous month’s sales...
PLEASE SHOW ALL WORK!! You have been engaged as a consultant to design a master budget model and then to assist Helping Hand Corp. in making some management decisions based on that master budget. Helping Hand is a small, rapidly growing wholesaler of consumer electronic products. The company’s main product lines are small kitchen appliances and power tools. The marketing manager has recently completed a sales forecast. She believes the company’s sales will increase by 2 percent each month over...
Please show ALL work, including formulas used and equations for excel You have been engaged as a consultant to design a master budget model and then to assist Helping Hand Corp. in making some management decisions based on that master budget. Helping Hand is a small, rapidly growing wholesaler of consumer electronic products. The company’s main product lines are small kitchen appliances and power tools. The marketing manager has recently completed a sales forecast. She believes the company’s sales will...
If you could please explain and show your work that would be great! Thank you so much! You have been engaged as a consultant to design a master budget model and then to assist Helping Hand Corp. in making some management decisions based on that master budget. Helping Hand is a small, rapidly growing wholesaler of consumer electronic products. The company's main product lines are small kitchen appliances and power tools. The marketing manager has recently completed a sales forecast....
1) Projected sales for November 2019 are $230,000. Credit sales are typically 85% of total sales. Helping Hand’s credit experience indicates that 12% of credit sales are collected during the month of sale, 74% in the month following the sale, and 14% in the second month following the sale. Experience shows the remaining credit sales are uncollectible. 2) Helping Hand’s cost of goods sold generally runs at 60% of sales. Inventory is purchased on account and 12% of each month’s...
1) Projected sales for November 2019 are $230,000. Credit sales are typically 85% of total sales. Helping Hand’s credit experience indicates that 12% of credit sales are collected during the month of sale, 74% in the month following the sale, and 14% in the second month following the sale. Experience shows the remaining credit sales are uncollectible. 2) Helping Hand’s cost of goods sold generally runs at 60% of sales. Inventory is purchased on account and 12% of each month’s...
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: As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances: DebitsCreditsCash$64,000Accounts receivable219,200Inventory61,350Buildings and equipment (net)374,000Accounts payable$92,325Common stock500,000Retained earnings126,225$718,550$718,550 Actual sales for December and budgeted sales for the next four months are...
Carter Corporation prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of the master budget for the second quarter of 2019: Actual sales for March and budgeted sales for the next four months are as follows: March $120,000 April 150,000 May 160,000 June 100,000 July 110,000 The company's gross profit rate is 44 percent of sales. Monthly expenses are budgeted as follows: salaries and wages, $12,000 per month; advertising, $15,000 per...
Problem Solving Completing a Master Budget: The following data relate to the operations of Rebel Corporation, a wholesale distributor of consumer goods. Current assets as of December 31: Cash Accounts receivable Inventory Buildings and equipment Accounts payable Capital Stock Retained earnings 15,000 25,000 18,500 110.000 35.000 100,000 23,500 a. The gross margin is 40% of sales (so cost of goods sold is 60% of sales) b. Actual and budgeted sales data are as follows: Below table indicates sales for December...