1A .
Sales | Budget | |||
April | May | June | Quarter | |
Budgeted unit sales | 65400 | 100400 | 50400 | 216200 |
Selling price per unit | 12 | 12 | 12 | 12 |
Total sales | 784800 | 1204800 | 604800 | 2594400 |
1B .
Earings | unlimited | |||
Schedule | of | expected | cash | collections |
April | May | June | Quarter | |
Feb sales | 31680 | 0 | 0 | |
Mar sales | 339360 | 48480 | 0 | |
Apr sales | 156960 | 549360 | 78480 | |
May sales | 0 | 240960 | 843360 | |
June sales | 0 | 0 | 120960 | |
Total cash collection | 528000 | 838800 | 1042800 | 2409600 |
1C .Purchase budget will be :-
Earrings | unlimited | |||
Merchandise | purchase | budget | ||
April | may | june | quarter | |
Budgeted sales unit | 65400 | 100400 | 50400 | |
+ Closing inventory | 40160 | 20160 | 12160 | |
- opening inventory | 26160 | 40160 | 20160 | |
Purchase unit | 79400 | 80400 | 42400 | 202200 |
Price per unit | 4.2 | 4.2 | 4.2 | 4.2 |
333480 | 337680 | 178080 | 849240 |
1D . cash disbursement for pur.
Earrings | unlimited | |||
Budgeted | cash | disbursement | for merchandise | purchase |
April | may | june | quarter | |
Accounts payable | 102000 | |||
Apr | 166740 | 166740 | ||
May | 168840 | 168840 | ||
June | 89040 | |||
Total cash payment | 268740 | 335580 | 257880 | 862200 |
Cash budget for quarter ending June
Cash | budget | for three | months ended | 30 june |
April | may |
June |
Quarter | |
Opening cash balance | 76000 | 52000 | 132028 | |
Add : collection from customer | 528000 | 838800 | 1042800 | 2409600 |
Total cash available | 604000 | 890800 | 1174828 | 2669628 |
Less : cash disbursement | ||||
Merchandise purchase | 268740 | 335580 | 257880 | 862200 |
Advertisement | 220000 | 220000 | 220000 | 660000 |
Rent | 20000 | 20000 | 20000 | 60000 |
Salaries | 110000 | 110000 | 110000 | 330000 |
Commission | 31392 | 31392 | 31392 | 103776 |
Utilities | 8000 | 8000 | 8000 | 24000 |
Equipment purchase | 0 | 17000 | 42000 | 59000 |
Div. Paid | 16500 | 0 | 0 | 16500 |
Loan repaid | 0 | 0 | 122632 | 122632 |
Interest on bank borrowing | 0 | 0 | 3679 | 3679 |
Total cash dis ursement | 674632 | 758772 | 808383 | 2241787 |
Excess/(deficiency) of cash over cash disbursement | (70632) | 132028 | 366445 | |
Financing : |
||||
Borrowing | 122632 | 0 | 0 |
Required (necessary(4 parts of answer solved. L(ack of time not
possible to solve more)
Case #2 You have just been hired as a new management trainee by Earrings Unlimited, a...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare comprehensive budgets for the upcoming second quarter in order to show management the...
EARRINGS UNLIMITED CASE You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting you have decided to prepare comprehensive budgets for the upcoming second quarter in order to...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare comprehensive budgets for the upcoming second quarter in order to show management the...
Ches You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have...
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have...