1) | Shilow company | ||||||
Schedule of Expected cash collections | |||||||
April | May | June | Quarter | ||||
Cash sales | 39600 | 42600 | 57600 | 139800 | |||
credit sales | 20,000 | 26400 | 28400 | 74,800 | |||
total collections | 59600 | 69000 | 86000 | 214600 | |||
Accounts receivable = 96000*40%= | 38400 | ||||||
2) | Merchandise purchase budget | ||||||
April | May | June | Quarter | ||||
Budgeted cost of goods sold | 49500 | 53250 | 72000 | 174750 | |||
Add Desired ending inventory | 42600 | 57600 | 28,200 | 28,200 | |||
total needs | 92100 | 110850 | 100200 | 202950 | |||
less beginning inventory | 39,600 | 42,600 | 57,600 | 39,600 | |||
Required purchases | 52,500 | 68,250 | 42,600 | 163,350 | |||
3) | Schedule of Cash disbursements-Merchandise purhcase | ||||||
April | May | June | Quarter | ||||
March purchases | 23,550 | 23,550 | |||||
April purchases | 26250 | 26,250 | 52500 | ||||
May purchases | 34125 | 34,125 | 68250 | ||||
June purchases | 21300 | 21300 | |||||
total disbursements | 49,800 | 60375 | 55425 | 165,600 | |||
4) | Cash budget | ||||||
April | May | June | Quarter | ||||
Beginning cash balance | 7,500 | 4,620 | 4,165 | 7,500 | |||
Add Cash collectiosn | 59600 | 69000 | 86000 | 214600 | |||
total cas h available | 67,100 | 73,620 | 90,165 | 222,100 | |||
less cash disbursements | |||||||
for inventory | 49,800 | 60375 | 55425 | 165,600 | |||
for expenses | 14180 | 15080 | 19580 | 48840 | |||
for equipment | 1,500 | 0 | 0 | 1,500 | |||
total cash disbursements | 65,480 | 75455 | 75005 | 215,940 | |||
Excess(Deficiency)of cash | 1,620 | -1,835 | 15,160 | 6,160 | |||
Financing: | |||||||
Borrowings | 3,000 | 6,000 | 0 | 9,000 | |||
Repayments | 0 | -9,000 | -9,000 | ||||
interest | 0 | -210 | -210 | ||||
total financing | 3,000 | 6,000 | -9210 | -210 | |||
Ending cash balance | 4,620 | 4,165 | 5,950 | 5,950 | |||
interest = 3000*1%*3= | 90 | ||||||
6000*1%*2= | 120 | ||||||
210 | |||||||
5) | income statement | ||||||
Sales | 233000 | ||||||
cost of goods sold | |||||||
Beginning inventor | 39,600 | ||||||
Add purchases | 163,350 | ||||||
goods available for sale | 202,950 | ||||||
ending inventory | 28,200 | 174,750 | |||||
Gross margin | 58,250 | ||||||
Selling and administrative expense | |||||||
commissions | 27960 | ||||||
rent | (2300*3) | 6900 | |||||
Depreciation | (954*3) | 2862 | |||||
other expenses | 13980 | 51702 | |||||
net operating | 6,548 | ||||||
interest expense | 210 | ||||||
net income | 6,338 | ||||||
Balance sheet | |||||||
Assets | |||||||
current assets | |||||||
Cash | 5,950 | ||||||
Accounts receivable | 38,400 | ||||||
inventory | 28,200 | ||||||
total current assets | 72,550 | ||||||
Building And equipment ,net | 125838 | ||||||
total Assets | 198,388 | ||||||
liabilities And stockholder 's Equity | |||||||
Accounts payable | 21,300 | ||||||
total current assets | 21,300 | ||||||
Stockholder's Equity | |||||||
Capital stock | 150,000 | ||||||
Retained earnings | 27,088 | 177,088 | |||||
total liabilites & stockholders Equity | 198,388 |
Problem 8-29 Completing a Master Budget (LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, L08-10) The following data relate...
Problem 8-29 Completing a Master Budget (LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] 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 $ 8,600 $ 24,400 $ 46,200 $ 118,800 $ 27,675 $ 150,000 $ 20,325 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May...
Problem 8-29 Completing a Master Budget (LO8-2, L08-4, LO8-7, LO8-8, LO8-9, LO8-10] 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 $ 7,400 $ 19,600 $ 39,000 $ 126,000 $ 23, 175 $ 150,000 $ 18,825 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April...
PROBLEM 8-29 Completing a Master Budget LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, L08-10 The following data relate to the operations of Shilow Company, a wholesale distributor of cor- sumer goods: Current assets as of March 31: $8,000 Cash $20,000 Accounts receivable Inventory.... . $36,000 $120,000 $21,750 Bulding and equipment, net. Accounts payable. . Common stock. Retained earnings. $150,000 $12,250 The gross margin is 25% of sales. a. Master Budgeting Actual and budgeted sales data March lactua $50,000 $60,000 $72.000 590.000 $48.000...
Problem 8-29 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 7,800 Accounts receivable $ 21,200 Inventory $ 41,400 Building and equipment, net $ 130,800 Accounts payable $ 24,675 Common stock $ 150,000 Retained earnings $ 26,525 The gross margin is 25% of sales. Actual and budgeted sales data: March (actual) $ 53,000 April $...
PROBLEM 8–27 Completing a Master Budget [LO8–2, LO8–4, LO8–7, LO8–8, LO8–9, LO8–10] The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,000 Accounts receivable . . . . . . . . . . . . . . $20,000...
Problem 8-29 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 8,300 Accounts receivable $ 23,200 Inventory $ 44,400 Building and equipment, net $ 126,000 Accounts payable $ 26,550 Common stock $ 150,000 Retained earnings $ 25,350 The gross margin is 25% of sales. Actual and budgeted sales data: March (actual) $ 58,000 April $...
Problem 8-29 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 9,200 Accounts receivable $ 26,800 Inventory $ 49,800 Building and equipment, net $ 104,400 Accounts payable $ 29,925 Common stock $ 150,000 Retained earnings $ 10,275 The gross margin is 25% of sales. Actual and budgeted sales data: March (actual) $ 67,000 April $...
Problem 8-29 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 7,400 Accounts receivable $ 19,600 Inventory $ 39,000 Building and equipment, net $ 126,000 Accounts payable $ 23,175 Common stock $ 150,000 Retained earnings $ 18,825 The gross margin is 25% of sales. Actual and budgeted sales data: March (actual) $ 49,000 April $...
Completing a master budget Problem 8-31 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] 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...
Problem 8-31 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] 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 53,000...