Question

Answer 1

Required	A
		October	November	December
Sales Budget		1,25,000	1,35,000	1,45,800
			(125000*108%)	(135000*108%)
Required	B
		October	November	December
Cash Receipts		50,000	54,000	1,33,320
		(No A/R)	A/R will be realised in next month	(58320+75000
Required	C
		October	November	December
Sales (COGS / 60%)	A	1,25,000	1,35,000	1,45,800
Mimimum Ending Invertory	B	81,000	87,480	94,770
Percentage	C = B/A	65%	65%	65%
Inventory Needed	D	83,100	89,748	93,480
Invenroty Budget	E =D+B	1,64,100	1,77,228	1,88,250
Required	D
Particulars		October	November	December
70% Current Pay		$40,719	$40,008	$41,518
30% Next Month			$17,451	$17,146
100% Prior Month Accout Payable		$0	$24,930	$24,494
Total Payable		$40,719	$82,389	$83,159
Required	E
Particulars		October	November	December
Salary Exp		$9,000	$9,000	$9,000
Sales Commision		$6,250	$6,750	$7,290
Supplies Exp		$2,500	$2,700	$2,916
Depreciation on Store Fixture		$2,000	$2,000	$2,000
In retail, fixtures refer to any piece of equipment or furniture used to display products therefore added in budget)
Rent		$2,400	$2,400	$2,400
Total Selling and Distirbution		$22,150	$22,850	$23,606
Required	F
Particulars		October	November	December
Salary		$9,000	$9,000	$9,000
Sales Commission		0	$0	$6,250
Supplies Exp		$2,500	$2,700	$2,916
Utilities				$700
Rent		$2,400	$2,400	$2,400
Misc		600	$600	$600
Total Selling and Distirbution		$14,500	$14,700	$21,866
Required	G
Particulars		October	November	December
Beginig Cash			-$1,04,670.00	-$79,404.00
Cash Receipts		$50,000.00	$1,29,000.00	$1,39,320.00
Add Fund		$1,000.00	$1,000.00	$1,000.00
Total Funds		$51,000.00	$25,330.00	$60,916.00
Repayments		$1,54,670.00	$1,03,734.00	$1,06,173.00
Fund Repay		$1,000.00	$1,000.00	$1,000.00
Total Repayments		$1,55,670.00	$1,04,734.00	$1,07,173.00
Shortage		-$1,04,670.00	-$79,404.00	-$46,257.00