Answer To: College: Yuba Community College Course: Accounting 1 LAB (online) Platform/Website: Cengage...
Nitish Lath answered on Oct 21 2021
Worksheet
MASTER
Master Budget
Data Section
Actual and Budgeted Unit Sales
May 1,400
June 1,000
July 1,600
August 1,400
September 1,500
October 1,200
Balance Sheet, June 30
Cash $12,480
Accounts receivable 239,120
Merchandise inventory (640 units) 70,400
Fixed assets (net) 130,000
Total assets $452,000
Accounts payable (merchandise) $136,400
Owner's equity 315,600
Total liabilities & equity $452,000
Other Data
Average selling price $196
Average purchase cost per unit $110
Desired ending inventory
(% of next month's unit sales) 40%
Collections from customers:
Collected in month of sale 20%
Collected in month after sale 50%
Collected two months after sale 30%
Projected cash payments:
Variable expenses 25% of sales
Fixed expenses (per month) $40,000
Depreciation per month $2,000
Answer Section
Sales Budget July August September
Units 1,600 1,400 1,500
Dollars $313,600 274,400 294,000
Unit Purchases Budget July August September
Desired ending inventory 560 600 480
Current month's unit sales 1,600 1,400 1,500
Total units needed 2,160 2,000 1,980
Beginning inventory 640 560 600
Purchases (units) 1,520 1,440 1,380
Purchases (dollars) $167,200 $158,400 $151,800
Cash Budget July August September
Cash balance, beginning $12,480 $8,000 $8,000
Cash receipts:
Collections from customers:
From May sales 82,320
From June sales 98,000 58,800
From July sales 62,720 156,800 94,080
From August sales 54,880 137,200
From September sales 58,800
Total cash available $255,520 $278,480 $298,080
Cash disbursements:
Merchandise $136,400 $167,200 $158,400
Variable expenses 78,400 68,600 73,500
Fixed expenses 40,000 40,000 40,000
Interest paid 0 109 191
Total disbursements $254,800 $275,909 $272,091
Cash balance before financing $720 $2,571 $25,989
Less: Desired ending balance 8,000 8,000 8,000
Excess (deficit) of cash over needs ($7,280) ($5,429) $17,989
Financing
Borrowing $7,280 $5,429 $0
Repayment 0 0 (12,709)
Total effects of financing $7,280 $5,429 ($12,709)
Cash balance, ending $8,000 $8,000 $13,280
Forecasted Income Statement
For Quarter Ended September 30
Sales $882,000
Cost of goods sold 495,000
Gross profit $387,000
Expenses:
Variable expenses $220,500
Fixed expenses 120,000
Depreciation expense 6,000
Interest expense 300
Total expenses $346,800
Net income $40,200
Forecasted Balance Sheet
as of September 30
Assets:
Cash $13,280
Accounts receivable 317,520
Merchandise inventory 52,800
Fixed assets (net) 124,000
Total assets $507,600
Liabilities & equity:
Accounts payable $151,800
Loans payable 0
Owner's equity 355,800
Total liabilities & equity $507,600
3.a. Yes, Ranger industry is earning profit during...