Managerial Acct 505 Project a
PROJECT A - Case 9-30 Accounting 505
Student Name:
SALES BUDGET: Budgeted unit sales Selling price per unit Total Sales April 65,000 10 650,000 May 100,000 10 1,000,000 June 50,000 10 500,000
SCHEDULE OF EXPECTED CASH COLLECTIONS: February sales March sales April sales May sales June sales Total Cash Collections 70%, 10% 20%,70%,10% 20%,70% 20% 10% April 26,000 280,000 130,000 May June
40,000 455,000 200,000 695,000 65,000 700,000 100,000 865,000
436,000
MERCHANDISE PURCHASES BUDGET: Budgeted unit sales Add desired ending inventory (40% of next months sales) Total needs Less beginning inventory Required purchases Cost of purchases @ $4 per unit April 65,000 40,000 105,000 26,000 79,000 316,000 May 100,000 20,000 120,000 40,000 80,000 320,000 June 50,000 12,000 62,000 20,000 42,000 168,000
BUDGETED CASH DISBURSEMENTS FOR MERCHANDISE PURCHASES: April Accounts payable 100,000 April purchases 158,000 May purchases June purchases Total cash payments 258,000
May 158,000 160,000 318,000
June
160,000 84,000 244,000
Cash balance Add collections from customers
EARRINGS UNLIMITED CASH BUDGET FOR THE THREE MONTHS ENDING JUNE 30 April May 74,000 50,000 436,000 695,000
June 50,000 865,000
Total cash available Less Disbursements Merchandise purchases Advertising Rent Salaries Commissions Utilities Equipment purchases Dividends paid Total Disbursements Excess (deficiency) of receipts over disbursements Financing: Borrowings Repayments Interest Total financing Cash balance, ending
510,000
745,000
915,000
258,000 200,000 18,000 106,000 26,000 7,000 15,000 630,000
318,000 200,000 18,000 106,000 40,000 7,000 16,000 705,000
244,000 200,000 18,000 106,000 20,000 7,000 40,000 635,000
(120,000) 170,000
40,000 10,000
280,000
170,000 50,000
10,000 50,000
(180,000) 5,300 (174,700) 105,300
EARRINGS UNLIMITED BUDGETED INCOME STATEMENT FOR