1 | Schedule of expected Cash Collections | ||||
April | May | June | Quarter | ||
Cash Sales | 46200 | 49200 | 64200 | 159600 | |
Credit Sales | 24400 | 30800 | 32800 | 88000 | |
Total collections | 70600 | 80000 | 97000 | 247600 | |
2 | Merchandise Purchases Budget | ||||
April | May | June | Quarter | ||
Budgeted cost of goods sold | 57750 | 61500 | 80250 | 199500 | |
Add desired ending merchandise inventory | 49200 | 64200 | 34800 | 34800 | |
Total needs | 106950 | 125700 | 115050 | 234300 | |
Less beginning merchandise inventory | 46200 | 49200 | 64200 | 46200 | |
Required purchases | 60750 | 76500 | 50850 | 188100 | |
Schedule of Expected Cash Disbursements - Merchandise Purchases | |||||
April | May | June | Quarter | ||
March Purchases | 27675 | 27675 | |||
April Purchases | 30375 | 30375 | 60750 | ||
May Purchases | 38250 | 38250 | 76500 | ||
June Purchases | 25425 | 25425 | |||
Total disbursements | 58050 | 68625 | 63675 | 190350 |
3 | Shilow Company | ||||
Cash Budget | |||||
April | May | June | Quarter | ||
Beginning cash balance $ | 8600 | 4290 | 4505 | 8600 | |
Add collections from customers | 70600 | 80000 | 97000 | 247600 | |
Total cash available | 79200 | 84290 | 101505 | 256200 | |
Less cash disbursements: | |||||
For inventory | 58050 | 68625 | 63675 | 190350 | |
For expenses | 17260 | 18160 | 22660 | 58080 | |
For equipment | 2600 | 0 | 0 | 2600 | |
Total cash disbursements | 77910 | 86785 | 86335 | 251030 | |
Excess (deficiency) of cash available over disbursements | 1290 | -2495 | 15170 | 5170 | |
Financing: | |||||
Borrowings | 3000 | 7000 | 0 | 10000 | |
Repayments | 0 | 0 | -10000 | -10000 | |
Interest | 0 | 0 | -230 | -230 | |
Total financing | 3000 | 7000 | -10230 | -230 | |
Ending cash balance $ | 4290 | 4505 | 4940 | 4940 |
Interest = ($3000 x 1% x 3) + ($7000 x 1% x 2) = $90 + $140 = $230
4 | Shilow Company | ||
Income Statement | |||
For the Quarter Ended June 30 | |||
Sales | 266000 | ||
Cost of goods sold: | |||
Beginning inventory | 46200 | ||
Purchases | 188100 | ||
Goods available for sale | 234300 | ||
Ending inventory | 34800 | 199500 | |
Gross profit | 66500 | ||
Selling and administrative expenses: | |||
Commissions (12% x $266000) | 31920 | ||
Rent ($3400 x 3) | 10200 | ||
Depreciation ($891 x 3) | 2673 | ||
Other expenses (6% x $266000) | 15960 | ||
60753 | |||
Net operating income | 5747 | ||
Interest expense | 230 | ||
Net income | 5517 |
5 | Shilow Company | ||
Balance Sheet | |||
June 30 | |||
Assets | |||
Current assets: | |||
Cash | 4940 | ||
Accounts receivable ($107000 x 40%) | 42800 | ||
Inventory | 34800 | ||
Total current assets | 82540 | ||
Building and equipment, net ($118800 + 2600 - 2673) | 118727 | ||
Total assets | 201267 | ||
Liabilities and Stockholders' Equity | |||
Accounts payable ($50850/2) | 25425 | ||
Stockholders' equity: | |||
Common stock | 150000 | ||
Retained earnings ($20325 + $5517) | 25842 | ||
175842 | |||
Total liabilities and stockholders' equity | 201267 |
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: 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 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: Cash Accounts receivable Inventory Building and equipment, net Accounts payable Common stock Retained earnings $ 7,200 $ 18, 800 $ 37,800 $ 123,600 $ 22, 425 $ 150,000 $ 14,975 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May June July $ 47,000 $ 63,000 $ 68,000 $ 93,000...
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 $ 9, 100 $ 26,400 $ 49,200 $ 106,800 $ 29,550 $ 150,000 $ 11,950 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May June Ouly $ 66,000 $ 82,000 $ 87,000 $ 112,000 $...
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 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 S57000 s 73000 700 $ 101000 5 54 000 c....