1.A Sales Budget
Particulars | April | May | June | Quarter |
Budgeted Units | 66400 | 101400 | 51400 | 219200 |
Selling Price p.u.$ | 13 | 13 | 13 | 13 |
Budgeted Sales $ | 863200 | 1318200 | 668200 | 2849600 |
b. Expected Cash Collections
Particulars | April | May | June | Quarter |
Feb Sales 10% in april | 35620 | 0 | 0 | 35620 |
March70 % in april, 10% in may | 376740 | 53820 | 0 | 430560 |
April 20% of own, 70 in May & 10in June | 172640 | 604240 | 86320 | 863200 |
May 20% of own,70 in June | 0 | 263640 | 922740 | 1186380 |
June 20% of own | 0 | 0 | 133640 | 133640 |
Total | 585000 | 921700 | 1142700 | 2649400 |
c. Merchandise Purchase Budget
Particulars | April | May | June | Quarter |
Budgeted Units Sales | 66400 | 101400 | 51400 | 219200 |
Required Purchases in units 60% of own & 40% of next | 80400 | 81400 | 43400 | 205200 |
Unit Cost $ | 4.7 | 4.7 | 4.7 | 4.7 |
Required Purchases in $ | 377880 | 382580 | 203980 | 964440 |
d. Cash Disbursements for Merchandise Purchases
Particulars | April | May | June | Quarter |
Accounts Payable50% of Previous | 107000 given | 188940 | 191290 | 487230 |
April Purchases50% | 188940 | 0 | 0 | 188940 |
May | 0 | 191290 | 0 | 191290 |
June | 0 | 0 | 101990 | 101990 |
Total Cash Disbursements | 295940 | 380230 | 293280 | 969450 |
2. Cash Budget
Particulars | April | May | June | Quarter |
Op. Balance | 81000 | 57782 | 57000 | 195782 |
Add: Collections from Customer | 585000 | 921700 | 1142700 | 2649400 |
Total Cash Available | 666000 | 979482 | 1199700 | 2845182 |
Less: Cash Disbursements | ||||
merchandise Purchases | 295940 | 380230 | 293280 | 969450 |
Advertising | 270000 | 270000 | 270000 | 810000 |
Rent | 25000 | 25000 | 25000 | 75000 |
Salaries | 120000 | 120000 | 120000 | 360000 |
Commissions 4% of Sales | 34528 | 52728 | 26728 | 113984 |
Utilities | 10500 | 10500 | 10500 | 31500 |
Equipment Purchases | 0 | 19500 | 47000 | 66500 |
Dividends Paid | 20250 | 0 | 0 | 20250 |
Total Cash Disbursements | 776218 | 877958 | 792508 | 2446684 |
Excess/ ( Deficiency) | (110218) | 101524 | 407192 | 398498 |
Financing: | ||||
borrowings in '000 with 57000 min. cash | 168000 | 0 | 0 | 168000 |
Repayments in '000 with 57000 min. cash | 0 | (44000) | (124000) | (168000) |
Interest at 1% Simple Interest | 0 | 0 | (5040) | (5040) |
Total Financing | 168000 | (44000) | (129040) | (5040) |
Ending Cash Balance | 57782 | 57000 | 278152 | 392934 |
3. Budgeted Income Statement
Particulars | Amount |
Sales | 2849600 |
Less: Variable Expenses | |
Merchandise Purchases | 969450 |
Sales Commissions 4% | 113984 |
Less: Fixed Expenses | |
Advertising | 810000 |
Rent | 75000 |
Salaries | 360000 |
Utilities | 31500 |
Interest | 5040 |
Depreciation | 63000 |
Dividends | 20250 |
Profit | 401376 |
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of...
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 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 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...