1 | Schedule of Expected Cash collections for January, February and March | ||||
January | February | March | Quarter | ||
Sales | $396,000 | $593,000 | $307,000 | $1,296,000 | |
Schedule of Expected Cash collections | |||||
Cash Sales | $79,200 | $118,600 | $61,400 | $259,200 | |
Credit Sales | $208,800 | $316,800 | $474,400 | $1,000,000 | |
Total cash collections | $288,000 | $435,400 | $535,800 | $1,259,200 | |
2A | Merchandise Purchase Budget for January, February and March | ||||
January | February | March | Quarter | ||
Cost of goods sold | $237,600 | $355,800 | $184,200 | $777,600 | |
Desired Ending Inventory | $88,950 | $46,050 | $30,600 | $30,600 | |
Total needs | $326,550 | $401,850 | $214,800 | $808,200 | |
Beginning Inventory | $59,400 | $88,950 | $46,050 | $59,400 | |
Required Purchase | $267,150 | $312,900 | $168,750 | $748,800 | |
2B | Schedule of Expected Cash disbursement for January, February and March | ||||
January | February | March | Quarter | ||
Accounts payable | $88,425 | $88,425 | |||
From January purchases | $133,575 | $133,575 | $267,150 | ||
From February purchases | $156,450 | $156,450 | $312,900 | ||
From March purchases | $84,375 | $84,375 | |||
total cash disbursement | $222,000 | $290,025 | $240,825 | $752,850 | |
3 | Cash Budget | ||||
January | February | March | Quarter | ||
Beginning Cash Balance | $51,000 | $30,320 | $34,155 | $51,000 | |
Add: Cash Collection | $288,000 | $435,400 | $535,800 | $1,259,200 | |
Total Cash Available | $339,000 | $465,720 | $569,955 | $1,310,200 | |
Less: Cash disbursement | |||||
Inventory purchases | $222,000 | $290,025 | $240,825 | $752,850 | |
Salaries and Wages | $26,000 | $26,000 | $26,000 | $78,000 | |
Advertising | $66,000 | $66,000 | $66,000 | $198,000 | |
Shipping | $19,800 | $29,650 | $15,350 | $64,800 | |
Other expenses | $11,880 | $17,790 | $9,210 | $38,880 | |
Equipment purchase | $2,100 | $75,500 | $77,600 | ||
Dividend | $45,000 | $45,000 | |||
Total Cash disbursement | $390,680 | $431,565 | $432,885 | $1,255,130 | |
Excess (deficiency) of cash | ($51,680) | $34,155 | $137,070 | $55,070 | |
Financing: | |||||
Borrowing | $82,000 | $82,000 | |||
Repayment | ($82,000) | ($82,000) | |||
Interest | ($2,460) | ($2,460) | |||
Total Financing | $82,000 | $0 | ($84,460) | ($2,460) | |
Ending Cash Balance | $30,320 | $34,155 | $52,610 | $52,610 | |
4 | Income Statement for the Quarter | ||||
Particulars | Amount | ||||
Sales | $1,296,000 | ||||
Cost of Goods Sold: | |||||
Beginning Inventory | $59,400 | ||||
Add: Purchases | $748,800 | ||||
Goods available for sale | $808,200 | ||||
Less: Ending Inventory | $30,600 | $777,600 | |||
Gross Profit | $518,400 | ||||
Operating expenses: | |||||
Salaries and Wages | $78,000 | ||||
Advertising | $198,000 | ||||
Shipping | $64,800 | ||||
Other expenses | $38,880 | ||||
Depreciation | $43,860 | ||||
Total Operating expenses | $423,540 | ||||
Operating Profit | $94,860 | ||||
Non-operating expenses: | |||||
Interest expense | $2,460 | ||||
Net income | $92,400 | ||||
5 | Balance Sheet | ||||
as of March 31 | |||||
Assets: | |||||
Cash | $52,610 | ||||
Accounts receivable | $245,600 | ||||
Inventory | $30,600 | ||||
Building and Equipment, net of depreciation | $394,740 | (361000+2100+75500-43860) | |||
Total Assets | $723,550 | ||||
Liabilities and Stockholders Equity | |||||
Accounts payable | $84,375 | ||||
Common Stock | $500,000 | ||||
Retained Earnings | $139,175 | (91775-45000+92400) | |||
Total Liabilities and Stockholder's Equity | $723,550 |
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The...
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of 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: Credits Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Capital shares Retained earnings Debits $ 49,000 224,000 57,000 356,000 $ 93,000 485,000 108,000 $686,000 $686,000...
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of 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: Credits Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Capital shares Retained earnings Debits $ 48,000 232,000 61,500 375,000 $ 93,000 520,000 103,500 $716,500 $716,500...
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of 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: Credits Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Capital shares Retained earnings Debits $ 50,000 224,000 61,500 366,000 $ 91,000 505,000 105,500 $701,500 $701,500...
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of 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: Debits Credits Cash $ 46,000 Accounts receivable 232,000 Inventory 57,000 Buildings and equipment (net) 375,000 Accounts payable $ 96,000 Capital shares 505,000 Retained earnings 109,000 $ 710,000...
Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of 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: Credits Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Capital shares Retained earnings Debits $ 49,000 224,000 60,000 376,000 $ 93,000 510,000 106,000 $709,000 $709,000...
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 $ 57,000 213,600 60,300 367,000 $ 90,225 500,000 107,675 $ 697,900 $697,900 b. Actual...
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: As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances: Cash $ 47,000 Accounts receivable 205,600 Inventory 58,800 Buildings and equipment (net) 357,000 Accounts payable $ 87,225 Common stock 500,000 Retained earnings 81,175 $ 668,400 $ 668,400 Actual sales...
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 Comunon stock Retained earnings $ 52,000 209,600 59,550 362,000 $ 88, 725 500,000 94,425 $ 683,150 $ 683,150...
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 $ 52,000 209,600 59,550 362,000 $ 88, 725 500,000 94,425 $ 683,150 $ 683,150...
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 Debits Credits 61,000 216,800 60,900 371,000 $ 91,425 500,000 118,275 $ 709, 700 $709,...