Question

Saved dget Project i Help Save 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 $ 7,700 $ 20,800 $ 40, 800 $ 129,600 $ 24,300 $ 150,000 $ 24,600 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May June July $ 52,000 $ 68,000 $ 73,000 $ 98,000 $ 49,000 L ANO AJ Prev 1 of 1 2 Next >

Answer 1

Answer to Part 1. Juneo + 143400 Cash Sales Collection from Credit Sales Total Cash Collections Schedule of Expected Cash Collections April May 40800 43800 20800 27200 61600 71000 June 58800 29200 88000 Quarter 143400 77200 220600 Answer to Part 2. May Budgeted Cost of goods sold Add: Desired Ending Inventory Total Needs Less: Beginning Inventory Required Purchases Merchandise Purchases Budget April 51000 54750 43800 58 800 94800 113550 40800 43800 54000 69 750 June 73500 29400 102900 58800 44100 Quarter 179250 29400 208650 40800 167850 Schedule of Expected Cash Disbursements - Merchandise Purchases April May June March Purchases 24300 April Purchases 27000 27000 May Purchases 34875 34875 June Purchases 22050 Total Disbursements 5130061875 56925 Quarter 24300 54000 69 750 22050 170100 Cash Disbursements for Expenses April May Commission 8160 8760 Rent 2500 2500 Other Expenses 4080 4380 Total Cash Disbursements for Expenses 14740 15640 June 11760 2500 5880 20140 Quarter 28680 7500 14340 50520

April 7700 61600 69300 May 4560 71000 75560 June 4045 88000 92045 Quarter 7700 220600 228300 61875 56925 Answer to Part 3. Cash Budget Beginning Cash Balance Add: Cash Collections Total Cash Available Less: Cash Disbursements For Inventory For Equipment For Expenses Total Cash Disbursements Excess (Deficiency) of Cash Financing: Borrowings Repayments Interest Total Financing Ending Cash Balance 51300 1700 14740 67740 1560 15640 77515 - 1955 20140 77065 14980 170100 1700 50520 222320 5980 3000 6000 0 -9000 -210 -9210 5770 9000 -9000 -210 -210 5770 3000 4560 6000 4045

239000 Answer to Part 4. Shilow Company Income Statement Income Statement For the Quarter Ended June 30 Sales Cost of Goods sold Beginning Inventory 40800 Purchases 167850 Goods available for Sale 208650 Ending Inventory 29400 Cost of Goods sold Gross Profit Selling and Administrative Expenses: Commission 28680 Rent 7500 Other Expenses 14340 Depreciation 2916 Total Selling and Adminitrative Expenses Net Operating Income Interest Expense Net Income 179250 59750 53436 6314 210 6104

Answer to Part 5. Shilow Company Balance Sheet June 30 Assets Current Asstes: Cash 5770 Accounts Receivable 39200 Inventory 29400 Total Current Assets Building and Equipment, net Total Assets Liabilities and Stockholders' Equity Current Liabilities: Accounts Payable Stockholders' Equity: Common Stock 150000 Retained Earnings 30704 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 74370 128384 202754 22050 180704 202754