Solution 1: | ||||
Schedule of expected cash collections | ||||
Particulars | January | February | March | Quarter |
Budgeted Sales | $400,000.00 | $630,000.00 | $280,000.00 | $1,310,000.00 |
Cash Sale | $80,000.00 | $126,000.00 | $56,000.00 | $262,000.00 |
Collection for credit sales | $224,000.00 | $320,000.00 | $504,000.00 | $1,048,000.00 |
Total Collections | $304,000.00 | $446,000.00 | $560,000.00 | $1,310,000.00 |
Solution 2a: | ||||
Merchandise Purchase Budget | ||||
Particulars | January | February | March | Quarter |
Budgeted Cost of Goods Sold (60% of Sales) | $240,000.00 | $378,000.00 | $168,000.00 | $786,000.00 |
Add: Desired ending merchandise inventory (25% of next month COGS) | $94,500.00 | $42,000.00 | $31,500.00 | $31,500.00 |
Total Needs | $334,500.00 | $420,000.00 | $199,500.00 | $817,500.00 |
Less: Beginning inventory | $60,000.00 | $94,500.00 | $42,000.00 | $60,000.00 |
Required purchases | $274,500.00 | $325,500.00 | $157,500.00 | $757,500.00 |
Solution 2b: | ||||
Schedule of expected cash disbursement - Merchandise Purchases | ||||
Particulars | January | February | March | Quarter |
March Purchases | $93,000.00 | $93,000.00 | ||
April Purchases | $137,250.00 | $137,250.00 | $274,500.00 | |
May Purchases | $162,750.00 | $162,750.00 | $325,500.00 | |
June Purchases | $78,750.00 | $78,750.00 | ||
Total Disbursement | $230,250.00 | $300,000.00 | $241,500.00 | $771,750.00 |
Solution 3: | ||||
Schedule of expected cash disbursement of Selling and Administrative expenses | ||||
Particulars | January | February | March | Quarter |
Salaries and wages | $25,000.00 | $25,000.00 | $25,000.00 | $75,000.00 |
Advertising | $68,000.00 | $68,000.00 | $68,000.00 | $204,000.00 |
Shipping (5% of sales) | $20,000.00 | $31,500.00 | $14,000.00 | $65,500.00 |
Other expenses (3% of sales) | $12,000.00 | $18,900.00 | $8,400.00 | $39,300.00 |
Total Disbursement | $125,000.00 | $143,400.00 | $115,400.00 | $383,800.00 |
Solution 4:
Cash Budget - Hillyard company | ||||
Particulars | January | February | March | Quarter |
Opening Cash balance | $49,000.00 | $31,750.00 | $31,950.00 | $49,000.00 |
Add: Collection from customers | $304,000.00 | $446,000.00 | $560,000.00 | $1,310,000.00 |
Total Cash Available | $353,000.00 | $477,750.00 | $591,950.00 | $1,359,000.00 |
Less - Cash Disbursement: | ||||
For Inventory | $230,250.00 | $300,000.00 | $241,500.00 | $771,750.00 |
For Selling and administrative Expenses | $125,000.00 | $143,400.00 | $115,400.00 | $383,800.00 |
For Equipment | $0.00 | $2,400.00 | $83,000.00 | $85,400.00 |
For Cash Dividend | $44,000.00 | $0.00 | $0.00 | $44,000.00 |
Total Cash disbursement | $399,250.00 | $445,800.00 | $439,900.00 | $1,284,950.00 |
Excess (deficiency) of cash available over disbursements | -$46,250.00 | $31,950.00 | $152,050.00 | $74,050.00 |
Financing: | ||||
Borrowings | $78,000.00 | $0.00 | $0.00 | $78,000.00 |
Repayments | $0.00 | $0.00 | -$78,000.00 | -$78,000.00 |
Interest | $0.00 | $0.00 | -$2,340.00 | -$2,340.00 |
Total Financing | $78,000.00 | $0.00 | -$80,340.00 | -$2,340.00 |
Ending cash balance | $31,750.00 | $31,950.00 | $71,710.00 | $71,710.00 |
Solution 5:
Absorption costing income statement - Hillyard Company | |
for quarter ended March 31 | |
Particulars | Amount |
Sales | $1,310,000.00 |
Cost of goods sold (60%) | $786,000.00 |
Gross profit | $524,000.00 |
Operating expenses: | |
Salaries and wages | $75,000.00 |
Advertising | $204,000.00 |
Shipping (5% of sales) | $65,500.00 |
Other expenses (3% of sales) | $39,300.00 |
Depreciation | $36,000.00 |
Total operating expenses | $419,800.00 |
Operating income | $104,200.00 |
Interest expense | $2,340.00 |
Net Income | $101,860.00 |
Solution 6:
Balance Sheet- Hillyard Company | |
31-Mar | |
Particulars | Amount |
Assets: | |
Cash | $71,710.00 |
Accounts receivables ($280000*80%) | $224,000.00 |
Inventory | $31,500.00 |
Building and equipment, net ($376000 +$2,400+ $83,000- $36000) | $425,400.00 |
Total Assets | $752,610.00 |
Liabilities and stockholder's Equity: | |
Accounts payable (157500*50%) | $78,750.00 |
Common Stock | $510,000.00 |
Retained Earnings ($106,000 + $101,860- $44000) | $163,860.00 |
Total liabilities and stockholders equity | $752,610.00 |
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The...
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of 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: Credits Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Capital shares Retained earnings Debits $ 49,000 224,000 57,000 356,000 $ 93,000 485,000 108,000 $686,000 $686,000...
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of 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: Credits Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Capital shares Retained earnings Debits $ 48,000 232,000 61,500 375,000 $ 93,000 520,000 103,500 $716,500 $716,500...
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of 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: Credits Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Capital shares Retained earnings Debits $ 50,000 224,000 61,500 366,000 $ 91,000 505,000 105,500 $701,500 $701,500...
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of 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: Debits Credits Cash $ 46,000 Accounts receivable 232,000 Inventory 57,000 Buildings and equipment (net) 375,000 Accounts payable $ 96,000 Capital shares 505,000 Retained earnings 109,000 $ 710,000...
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of 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: Debits Credits Cash $ 50,000 Accounts receivable 232,000 Inventory 57,000 Buildings and equipment (net) 367,000 Accounts payable $ 93,000 Capital shares 510,000 Retained earnings 103,000 $ 706,000...
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: S 51,000 208,800 59,400 361,000 Accounts receivable Buildings and equipment (net) Accounts payable Common stock Retained earnings $88,425 500,000 91,775 S 680,200 680,200 b. Actual sales for December...
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: Cash $ 47,000 Accounts receivable 205,600 Inventory 58,800 Buildings and equipment (net) 357,000 Accounts payable $ 87,225 Common stock 500,000 Retained earnings 81,175 $ 668,400 $ 668,400 Actual sales...
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 stock Retained earnings $ 57,000 213,600 60,300 367,000 $ 90,225 500,000 107,675 $ 697,900 $697,900 b. Actual...
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of 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: Debits Credits Cash $ 47,000 Accounts receivable 232,000 Inventory 63,000 Buildings and equipment (net) 366,000 Accounts payable $ 95,000 Capital shares 500,000 Retained earnings 113,000 $ 708,000...
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 stock Retained earnings Debits Credits 61,000 216,800 60,900 371,000 $ 91,425 500,000 118,275 $ 709, 700 $709,...