A company sells cars. The data following data are taken from a statement of financial position at March 31, 2019
Cash $6000
Accounts Receivable $18000
Inventories $34000
Accounts payable $19750
Additional info:
1) Actual and expected sales are:
March (Actual) $40000
April $50000
May $62000
June $80000
2) 30% of sales are on credit, the remaining are in cash. All credit sales are collected in the following month.
3) The ending inventory should be 70% of the following month's sales cost of goods sold.
4) Gross margin is expected to be 20% of sales
5) Of each month's purchases, 40% are paid in cash, and the remaining is paid for in the month following purchase,
6) Monthly operating expenses are: salaries in commissions, 10% of sales; rent, $2000 and other expenses, excluding depreciation equipment, equal to 8% of sales. All paid in the month where they are incurred. Monthly depreciation equipment is $800.
7) Equipment will be purchased in April $1500 in cash
8) The company has a policy that the ending cash balance in each month must be at least $3500. The company can borrow at the beginning of each month. All repayments are made at the end of the month. All borrowings and repayments are made in increments of $100. The interest rate on borrowings is 5% per year with interest being paid in the month of borrowings.
Question: Prepare the following budgets
1. Cash collections budget
April | May | |
Cash sales | ||
Credit sales | ||
Total |
2. Purchases Budget
April | May | June | |
Desired ending inventory | |||
Cost of goods sold | |||
Beginning inventory | |||
Total Purchases |
Could anyone give an explanation on how to prepare the budgets step by step?
A company sells cars. The data following data are taken from a statement of financial position...
A company sells cars. The data following data are taken from a statement of financial position at March 31, 2019 Cash $6000 Accounts Receivable $18000 Inventories $34000 Accounts payable $19750 Additional info: 1) Actual and expected sales are: March (Actual) $40000 April $50000 May $62000 June $80000 2) 30% of sales are on credit, the remaining are in cash. All credit sales are collected in the following month. 3) The ending inventory should be 70% of the following month's sales...
A company sells cars. The data following data are taken from a statement of financial position at March 31, 2019 Cash $6000 Accounts Receivable $18000 Inventories $34000 Accounts payable $19750 Additional info: 1) Actual and expected sales are: March (Actual) $40000 April $50000 May $62000 June $80000 2) 30% of sales are on credit, the remaining are in cash. All credit sales are collected in the following month. 3) The ending inventory should be 70% of the following month's sales...
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 $ 9, 100 $ 26,400 $ 49,200 $ 106,800 $ 29,550 $ 150,000 $ 11,950 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May June Ouly $ 66,000 $ 82,000 $ 87,000 $ 112,000 $...
The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Accounts receivable Inventory Building and equipment, net Accounts payable Common stock Retained earnings $ 8,400 $ 23,600 $ 45,000 $ 123,600 $ 26,925 $ 150,000 $ 23,675 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) Apr 11 May June July $ 59,000 $ 75,000 $ 80.000 $ 105,000 $ 56,000...
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 $ 7,600 $ 20,400 $ 40,200 $ 128,400 $ 23,925 $ 150,000 $ 22,675 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May June July $ 51,000 $ 67,000 $ 72,000 $ 97,000 $ 48,000...
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 $ 8,200 $ 22,800 $ 43,800 $ 128,400 $ 26,175 $ 150,000 $ 27,025 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May June July $ 57,000 $ 73,000 $ 78,000 $ 103,000 $ 54,000...
Please create an Assumption page in excel for all given data. Creating a master budget where all data needs to be links to assumptions. No hard numbers can be used. Thank you 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 $ 8,500 $ 24,000 $ 45, 600 $ 121,200 $ 27,300 $...
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 $ 7,500 $ 20,00 $ 39,60 $ 127,200 $ 23,550 $ 150, een $ 20,750 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May June July $ 50,000 $ 66,000 $ 71,00 $ 96, cea...
28 2) Sche ACC 321 Group Project (chapter 6) for a Merchandising ompany 3) 1 Retained Earnings ....*** * June ....... July Nordic Company, a merchandising company, pre- pares its master budgme un quarterly basis. The following data have been assembled to assist in preparation of the master budget for the second quarter. 2. As of March 31 (the end of the prior quarter), the company's balance sheet showed the following account balances: Cash .................... $ 9,000 Accounts Receivable .............
The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash 9,400 27,600 51,000 99,600 30,675 $ 150,000 Accounts receivable Inventory Building and equipment, net Accounts payable Common stock Retained earnings 6,925 a. The gross margin is 25% of sales b. Actual and budgeted sales data: S 69,000 S 85,000 90,000 S 115,000 S 66,000 March (actual) April May June July c. Sales are 60% for cash and...