Question

Specific instructions: Study the required resources of the module and particularly the illustrative exercise 16.1 to perform this exercise. Read carefully the financial and operational data of the JKL Corporation offered below and use them to prepare the budget for: Collections for sales for the quarter (10 points) Purchases for the quarter (10 points) Disbursements on purchases for the quarter (10 points) . Disbursements of administrative and sales expenses for the quarter (10 points) Financial and operational data of Corporación JKL The JKL Corporation is dedicated to the business of buying and selling and is designing its master budget for the next quarter of operations from April to June of 20xx. The data collected and necessary to work with such a budget are the following: A. Certain data from the State s TATE (Balance Sheet) on March 31, 20 xx: DI $ 20,000 Cash Accounts receivable 64,000 Inventory 15,400 Buildings and equipment (net depreciation) 225,000 $ 23,400 Debts to pay Long term debts 90,000 Common Shares - Capital 150,000 Retained earnings 61,000 $324,400 Totals $ 324,400

Answer 1

Cash Collections budget
	April	May	June	Quarter
Cash Sales	$          12,800	$          12,600	$             15,400	$       40,800
Collection from Customers	$          64,000	$          51,200	$             50,400	$    1,65,600
Total Cash Collections	$          76,800	$         63,800	$             65,800	$    2,06,400
Purchase Budget
	April	May	June	Quarter
Budgeted Sales	$          64,000	$          63,000	$             77,000	$    2,04,000
Current Cost of Goods Sold (67%)	$          42,880	$          42,210	$             51,590	$    1,36,680
Add : Desired Ending Inventory	$          10,553	$          12,898	$                9,213
Total Needs	$          53,433	$          55,108	$             60,803	$    1,69,343
Less : Beginning Inventory	$          15,400	$          10,553	$             12,898
Total Purchase Cost	$          38,033	$         44,555	$             47,905	$    1,30,493
Cash Disbursements budget for Purchase
	April	May	June	Quarter
Collections from accounts payable
Paid in same month	$          15,213	$          17,822	$             19,162	$       52,197
Paid in following month	$          23,400	$          22,820	$             26,733	$       72,953
Total Cash Payments	$          38,613	$         40,642	$             45,895	$    1,25,150
Cash Disbursements budget for administrative and sales exp
	April	May	June	Quarter
Salaries	$            8,500	$            8,500	$                8,500	$       25,500
Advertising	$            4,100	$            4,100	$                4,100	$       12,300
Residual	$            5,120	$            5,040	$                6,160	$       16,320
Total Cash Disbursements	$          17,720	$         17,640	$             18,760	$       54,120