Required Budgets are as prepared below:
Shillow Company | |||||||
Schedule of expected Cash collections | |||||||
For the quarter ended June 30 | |||||||
Month | |||||||
Particulars | April | May | June | Total | July | ||
Sales | 63,000 | 68,000 | 93,000 | 224,000 | 44,000 | ||
Beginning Accounts Receivable | |||||||
March Credit sales (47,000*.4) | 18,800 | 18,800 | |||||
April Cash Sales | 37,800 | 37,800 | |||||
April Credit Sales | 25,200 | 25,200 | |||||
May Cash sales | 40,800 | 40,800 | |||||
May Credit Sales | 27,200 | 27,200 | |||||
June Cash sales | 55,800 | 55,800 | |||||
June Credit Sales | 0 | ||||||
Total collections | 56,600 | 66,000 | 83,000 | 205,600 | |||
Account receivable for June sale | 37,200 | ||||||
Shillow Company | |||||||
Merchandise Purchase Budget | |||||||
For the quarter ended June 30 | |||||||
Month | |||||||
Particulars | April | May | June | Total | July | ||
Cost of goods sold (75% of sales) | 47,250 | 51,000 | 69,750 | 168,000 | 33,000 | ||
Add: Desired Ending merchandise inventory (80% of next month COGS) | 40,800 | 55,800 | 26,400 | 26,400 | |||
Total needs | 88,050 | 106,800 | 96,150 | 194,400 | |||
Less: beginning merchandise inventory | 37,800 | 40,800 | 55,800 | 37,800 | |||
Required purchase | 50,250 | 66,000 | 40,350 | 156,600 | |||
Shillow Company | |||||||
Schedule of expected Cash payments | |||||||
For the quarter ended June 30 | |||||||
Month | |||||||
Particulars | April | May | June | Total | |||
Beginning Accounts Payable (a) | $22,425 | $22,425 | |||||
April Purchases (b) | $25,125 | $25,125 | $50,250 | ||||
May Purchases (c ) | $33,000 | $33,000 | $66,000 | ||||
June Purchases (d) | $20,175 | $20,175 | |||||
Total payments (a+b+c+d) | $47,550 | $58,125 | $53,175 | $158,850 | |||
Shillow Company | |||||||
Cash Budget | |||||||
For the quarter ended June 30 | |||||||
Month | |||||||
Particulars | April | May | June | Total | |||
Beginning Cash balance | 7,200 | 4,710 | 4,345 | 7,200 | |||
Add: Collection from customers | $56,600 | $66,000 | $83,000 | 205,600 | |||
cash available for use | $63,800 | $70,710 | $87,345 | $212,800 | |||
Less: cash Disbursements | |||||||
Merchandise purchase | $47,550 | $58,125 | $53,175 | 158,850 | |||
Commissions (12% of sales) | 7,560 | 8,160 | 11,160 | 26,880 | |||
Rent | 2,000 | 2,000 | 2,000 | 6,000 | |||
Other exp (6% of sales) | 3,780 | 4,080 | 5,580 | 13,440 | |||
Equipment purchase | 1,200 | 0 | 0 | 1,200 | |||
Total disbusrement | 62,090 | 72,365 | 71,915 | 206,370 | |||
Cash surplus/Deficit | 1,710 | -1,655 | 15,430 | 6,430 | |||
Financing | |||||||
Borrowing | 3,000 | 6,000 | 9,000 | ||||
Repayment | -9,000 | -9,000 | Interest Exp | ||||
Interest | -210 | -210 | 3,000*3% | 90 | |||
Net cash from Financing | 3,000 | 6,000 | 9,210 | -210 | 6,000*2% | 120 | |
Budgeted ending cash balance | 4,710 | 4,345 | 6,220 | 6,220 | 210 | ||
Shillow Company | |||||||
Budgeted Income Statement | |||||||
For the quarter ended June 30 | |||||||
Particulars | Amount ($) | Amount ($) | |||||
Sales | 224,000 | ||||||
Less: Cost of goods sold (75% of sales) | 168,000 | ||||||
Gross margin | 56,000 | ||||||
Less: Selling and administartive exp | |||||||
Depreciation (927*3) | 2,781 | ||||||
Commissions (12% of sales) | 26,880 | ||||||
Rent | 6,000 | ||||||
Other exp (6% of sales) | 13,440 | 49,101 | |||||
Net operating Income | 6,899 | ||||||
Interest expense | 210 | ||||||
Net Income | 6,689 | ||||||
Shillow Company | |||||||
Budgeted balance Sheet | |||||||
Jun-30 | |||||||
Assets | |||||||
Cash | 6,220 | ||||||
Accounts Receivable (93,000*.4) | 37,200 | ||||||
Inventory (44,000*.75)*.8 | 26,400 | ||||||
Building and equipment Net (123,600+1,200-2,781) | 122,019 | ||||||
Total assets | 191,839 | ||||||
Liabilities and Stockholders' Equity | |||||||
Accounts Payable purchases (40,350*.5) | 20,175 | ||||||
Common Stock | 150,000 | ||||||
Retained earnings (14975+6689) | 21,664 | ||||||
Total liabilities and stockholders' equity | 191,839 | ||||||
The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current asset...
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 $ 8.780 $ 24,888 $ 46,800 $116,480 $ 28.050 $ 150.000 $ 18,650 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May $ 78,000 $ 83,000 $ 100.000 $ 59.888 June July C. Sales are...
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 June July $ 61,000 $ 77,000 $ 82,000 $ 107,000 $ 58,000...
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 $ 8,200 $ 22,800 $ 43,800 $ 128,400 $ 26,175 $ 150,000 $ 27,025 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May June July $ 57,000 $ 73,000 $ 78,000 $ 103,000 $ 54,000...
The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Accounts receivable Inventory Building and equipment, net Accounts payable Common stock Retained earnings $ 8,400 $ 23,600 $ 45,000 $ 123,600 $ 26,925 $ 150,000 $ 23,675 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) Apr 11 May June July $ 59,000 $ 75,000 $ 80.000 $ 105,000 $ 56,000...
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 $ 7,600 $ 20,400 $ 40,200 $ 128,400 $ 23,925 $ 150,000 $ 22,675 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May June July $ 51,000 $ 67,000 $ 72,000 $ 97,000 $ 48,000...
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 May June July $ 49,000 $ 65,000 $ 70,000 $ 95,000 $ 46,000...
The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash 9,400 27,600 51,000 99,600 30,675 $ 150,000 Accounts receivable Inventory Building and equipment, net Accounts payable Common stock Retained earnings 6,925 a. The gross margin is 25% of sales b. Actual and budgeted sales data: S 69,000 S 85,000 90,000 S 115,000 S 66,000 March (actual) April May June July c. Sales are 60% for cash and...
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 20,000 $ 36,000 $ 120,000 $ 21,750 150,000 $12,250 $ Accounts receivable Inventory Building and equipment, net Accounts payable Common stock Retained earnings a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April Мay June 50,000 $ 60,000 72,000 90,000 48,000 July c. Sales are 60% for cash and...
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 Connon stock Retained earnings $ 7,200 $ 18.800 $ 37.800 $ 123.668 $ 22.425 $ 150. eee $ 14,975 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual ) April $ 47.000 $ 63.000 $ 68.000 $ 93. $ 44, eee...
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 Connon stock Retained earnings $ 7,200 $ 18.800 $ 37.800 $ 123.668 $ 22.425 $ 150. eee $ 14,975 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual ) April $ 47.000 $ 63.000 $ 68.000 $ 93. $ 44, eee...