Question 1
Solution
WELLER COMPANY | |||||
SELLING AND ADMINISTRATIVE EXPENSE BUDGET | |||||
Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Total | |
Budgeted Unit sales | 31000 | 33000 | 24000 | 29000 | 117000 |
variable Selling and Administrative expenses | $ 93,000.00 | $ 99,000.00 | $ 72,000.00 | $ 87,000.00 | $ 351,000.00 |
Fixed Selling and Administrative expenses | |||||
Advertising Expense | $ 8,000.00 | $ 8,000.00 | $ 8,000.00 | $ 8,000.00 | $ 32,000.00 |
Executive Salaries | $ 50,000.00 | $ 50,000.00 | $ 50,000.00 | $ 50,000.00 | $ 200,000.00 |
Depreciation | $ 30,000.00 | $ 30,000.00 | $ 30,000.00 | $ 30,000.00 | $ 120,000.00 |
Insurance | $ 5,000.00 | $ 5,000.00 | $ 10,000.00 | ||
Property taxes | $ 7,000.00 | $ 7,000.00 | |||
Total Fixed Selling and Administrative expenses | $ 93,000.00 | $ 95,000.00 | $ 93,000.00 | $ 88,000.00 | $ 369,000.00 |
Total Selling and Administrative expenses | $ 186,000.00 | $ 194,000.00 | $ 165,000.00 | $ 175,000.00 | $ 720,000.00 |
Less: Non cash expense (deprectaion) | $ 30,000.00 | $ 30,000.00 | $ 30,000.00 | $ 30,000.00 | $ 120,000.00 |
Cash Disbursement for selling and administrative expenses | $ 156,000.00 | $ 164,000.00 | $ 135,000.00 | $ 145,000.00 | $ 600,000.00 |
.
Question 2
Solution
Garden Depot | |||||
Cash budget | |||||
Q1 | Q2 | Q3 | Q4 | Year | |
Beginning Cash balance | $ 47,000.00 | $ 10,000.00 | $ 73,560.00 | $ 102,560.00 | $ 47,000.00 |
Total cash receipt | $ 290,000.00 | $ 410,000.00 | $ 340,000.00 | $ 360,000.00 | $ 1,400,000.00 |
Total cash available | $ 337,000.00 | $ 420,000.00 | $ 413,560.00 | $ 462,560.00 | $ 1,447,000.00 |
Less: Total cash disbursement | $ 351,000.00 | $ 321,000.00 | $ 311,000.00 | $ 331,000.00 | $ 1,314,000.00 |
Excess of cash available over disbursement | $ (14,000.00) | $ 99,000.00 | $ 102,560.00 | $ 131,560.00 | $ 133,000.00 |
Financing: | |||||
Borrowings | $ 24,000.00 | $ 24,000.00 | |||
Repayments | $ - | $ (24,000.00) | $ - | $ - | $ (24,000.00) |
Interest | $ - | $ (1,440.00) | $ - | $ - | $ (1,440.00) |
Total financing | $ 24,000.00 | $ (25,440.00) | $ - | $ - | $ (1,440.00) |
Ending cash balance | $ 10,000.00 | $ 73,560.00 | $ 102,560.00 | $ 131,560.00 | $ 131,560.00 |
.Loan is taken at the beginning of the quarter and paid at the end of second . This means Loan of 24000 is taken at beginning of Q1 and repaid at End of Q2 so 2 Quarters interest will be paid on $24000.
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