АВС СОМРANY Month Sales budget July August September 800,000 750,000 990,000 October 630,000 November 560,000 Other data: 1. Cost of Goods Sold is 65% of sales. 2. Total monthly fixed costs are 120,000, plus an additional 30,000 non-cash expenses. 3. The company maintains inventory two-month supply, which includes the following month. 4. ABC Co. pays for its purchases 45% in the month of purchase, 55% in the following month. 5. The company collects 75% of its sales in the month of sale, and 25% in the following month. 6. ABC Co. pays all other expenses requiring cash disbursements as incurred. 7. ABC Co. tries to keep at least 30,000 cash as buffer against unexpected needs. Balance Sheet as of 30 June 2022 Assets Liabilities and Capital 100,000 Cash Accounts Receivable Inventory Accounts Payable 200,000 280,000 490,000 Non-current asset 1,550,000 A, Capital 2,220,000 Total PHP 2,420,000 PHP 2,420,000 Pro Forma Balance Sheet as of 30 September 2022 Assets Liabilities and Capital Cash Accounts Payable Accounts Receivable Inventory Non-current asset | 4, Capital Total PHP 0 PHP 0
АВС СОМРANY Month Sales budget July August September 800,000 750,000 990,000 October 630,000 November 560,000 Other data: 1. Cost of Goods Sold is 65% of sales. 2. Total monthly fixed costs are 120,000, plus an additional 30,000 non-cash expenses. 3. The company maintains inventory two-month supply, which includes the following month. 4. ABC Co. pays for its purchases 45% in the month of purchase, 55% in the following month. 5. The company collects 75% of its sales in the month of sale, and 25% in the following month. 6. ABC Co. pays all other expenses requiring cash disbursements as incurred. 7. ABC Co. tries to keep at least 30,000 cash as buffer against unexpected needs. Balance Sheet as of 30 June 2022 Assets Liabilities and Capital 100,000 Cash Accounts Receivable Inventory Accounts Payable 200,000 280,000 490,000 Non-current asset 1,550,000 A, Capital 2,220,000 Total PHP 2,420,000 PHP 2,420,000 Pro Forma Balance Sheet as of 30 September 2022 Assets Liabilities and Capital Cash Accounts Payable Accounts Receivable Inventory Non-current asset | 4, Capital Total PHP 0 PHP 0
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:АВС СОМРANY
Month
Sales budget
July
August
800,000
750,000
September
990,000
October
630,000
November
560,000
Other data:
1. Cost of Goods Sold is 65% of sales.
2. Total monthly fixed costs are 120,000, plus an additional 30,000 non-cash expenses.
3. The company maintains inventory two-month supply, which includes the following month.
4. ABC Co. pays for its purchases 45% in the month of purchase, 55% in the following month.
5. The company collects 75% of its sales in the month of sale, and 25% in the following month.
6. ABC Co. pays all other expenses requiring cash disbursements as incurred.
7. ABC Co. tries to keep at least 30,000 cash as buffer against unexpected needs.
Balance Sheet as of 30 June 2022
Assets
Liabilities and Capital
Cash
100,000
Accounts Payable
200,000
Accounts Receivable
280,000
Inventory
490,000
Non-current asset
1,550,000
A, Capital
2,220,000
Total
PHP 2,420,000
PHP 2,420,000
Pro Forma Balance Sheet as of 30 September 2022
Assets
Liabilities and Capital
Cash
Accounts Payable
Accounts Receivable
Inventory
Non-current asset
А. Сарital
Total
PHP 0
PHP 0
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