I need to create a forecasted income statement and forecasted balance sheet with the following information. Data Section: Actual and Budgeted Unit Sales: April 1,500 May 1,000 June 1,600 July 1,400 August 1,500 September 1,200 Balance Sheet, May 31, 19X5 Cash $8,000 Accounts receivable 107,800 Merchandise inventory 52,800 Fixed assets (net) 130,000 -------- Total assets $298,600 ======== Accounts payable (merchandise) $74,800 Owner's equity 223,800 -------- Total liabilities & equity $298,600 ======== Average selling price $98 Average purchase cost per unit $55 Desired ending inventory (% of next month's unit sales) 60% Collections from customers: Collected in month of sale 20% Collected in month after sale 60% Collected two months after sale 20% Projected cash payments: Variable expenses 30% of sales Fixed expenses (per month) $10,000 Depreciation per month $1,000 - - - - Answer Section: Sales Budget ------------ June July August ------ ------ ------ Units 1,600 1,400 1,500 Dollars $156,800 137,200 147,000 Unit Purchases Budget ------------------ June July August ------ ------ ------ Desired ending inventory 840 900 720 Current month's unit sales 1,600 1,400 1,500 -------- -------- -------- Total units needed 2,440 2,300 2,220 Beginning inventory 960 840 900 -------- -------- -------- Purchases (units) 1,480 1,460 1,320 ======== ======== ======== Purchases (dollars) $81,400 $80,300 $72,600 ======== ======== ======== Cash Budget ----------- June July August ------ ------ ------ Cash balance, beginning $8,000 $8,000 $8,000 Cash receipts: Collections from customers: From April sales 29,400 From May sales 58,800 19,600 From June sales 31,360 94,080 31,360 From July sales 27,440 82,320 From August sales 29,400 -------- -------- -------- Total cash available $127,560 $149,120 $151,080 Cash disbursements: Merchandise $74,800 $81,400 $80,300 Variable expenses 47,040 41,160 44,100 Fixed expenses 10,000 10,000 10,000 Interest paid 0 184 59 -------- -------- -------- Total disbursements $131,840 $132,744 $134,459 -------- -------- -------- Cash balance before financing ($4,280) $16,376 $16,621 Less: Desired ending balance 8,000 8,000 8,000 -------- -------- -------- Excess (deficit) of cash over needs ($12,280) $8,376 $8,621 -------- -------- -------- Financing Borrowing $12,280 $0 $0 Repayment 0 (8,376) (3,904) -------- -------- -------- Total effects of financing $12,280 ($8,376) ($3,904) -------- -------- -------- Cash balance, ending $8,000 $8,000 $12,717 ======== ======== ======== Forecasted Income Statement For Quarter Ended August 31, 19X5 --------------------------------- Sales Cost of goods sold -------- Gross profit -------- Expenses: Variable expenses Fixed expenses Depreciation expense Interest expense -------- Total expenses $0 -------- Net income $0 ======== Forecasted Balance Sheet August 31, 19X5 ------------------------ Assets: Cash Accounts receivable Merchandise inventory Fixed assets (net) -------- Total assets $0 ======== Liabilities & equity: Accounts payable Loans payable 0 Owner's equity -------- Total liabilities & equity $0 ========
I need to create a forecasted income statement and forecasted balance sheet with the following information. Data Section: Actual and Budgeted Unit Sales: April 1,500 May 1,000 June 1,600 July 1,400 August 1,500 September 1,200 Balance Sheet, May 31, 19X5 Cash $8,000 Accounts receivable 107,800 Merchandise inventory 52,800 Fixed assets (net) 130,000 -------- Total assets $298,600 ======== Accounts payable (merchandise) $74,800 Owner's equity 223,800 -------- Total liabilities & equity $298,600 ======== Average selling price $98 Average purchase cost per unit $55 Desired ending inventory (% of next month's unit sales) 60% Collections from customers: Collected in month of sale 20% Collected in month after sale 60% Collected two months after sale 20% Projected cash payments: Variable expenses 30% of sales Fixed expenses (per month) $10,000 Depreciation per month $1,000 - - - - Answer Section: Sales Budget ------------ June July August ------ ------ ------ Units 1,600 1,400 1,500 Dollars $156,800 137,200 147,000 Unit Purchases Budget ------------------ June July August ------ ------ ------ Desired ending inventory 840 900 720 Current month's unit sales 1,600 1,400 1,500 -------- -------- -------- Total units needed 2,440 2,300 2,220 Beginning inventory 960 840 900 -------- -------- -------- Purchases (units) 1,480 1,460 1,320 ======== ======== ======== Purchases (dollars) $81,400 $80,300 $72,600 ======== ======== ======== Cash Budget ----------- June July August ------ ------ ------ Cash balance, beginning $8,000 $8,000 $8,000 Cash receipts: Collections from customers: From April sales 29,400 From May sales 58,800 19,600 From June sales 31,360 94,080 31,360 From July sales 27,440 82,320 From August sales 29,400 -------- -------- -------- Total cash available $127,560 $149,120 $151,080 Cash disbursements: Merchandise $74,800 $81,400 $80,300 Variable expenses 47,040 41,160 44,100 Fixed expenses 10,000 10,000 10,000 Interest paid 0 184 59 -------- -------- -------- Total disbursements $131,840 $132,744 $134,459 -------- -------- -------- Cash balance before financing ($4,280) $16,376 $16,621 Less: Desired ending balance 8,000 8,000 8,000 -------- -------- -------- Excess (deficit) of cash over needs ($12,280) $8,376 $8,621 -------- -------- -------- Financing Borrowing $12,280 $0 $0 Repayment 0 (8,376) (3,904) -------- -------- -------- Total effects of financing $12,280 ($8,376) ($3,904) -------- -------- -------- Cash balance, ending $8,000 $8,000 $12,717 ======== ======== ======== Forecasted Income Statement For Quarter Ended August 31, 19X5 --------------------------------- Sales Cost of goods sold -------- Gross profit -------- Expenses: Variable expenses Fixed expenses Depreciation expense Interest expense -------- Total expenses $0 -------- Net income $0 ======== Forecasted Balance Sheet August 31, 19X5 ------------------------ Assets: Cash Accounts receivable Merchandise inventory Fixed assets (net) -------- Total assets $0 ======== Liabilities & equity: Accounts payable Loans payable 0 Owner's equity -------- Total liabilities & equity $0 ========
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter22: Master Budget (master)
Section: Chapter Questions
Problem 1R: Ranger Industries has provided the following information at June 30: Other information: Average...
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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
I need to create a
| Data Section: | ||||
| Actual and Budgeted Unit Sales: | ||||
| April | 1,500 | |||
| May | 1,000 | |||
| June | 1,600 | |||
| July | 1,400 | |||
| August | 1,500 | |||
| September | 1,200 | |||
| Balance Sheet, May 31, 19X5 | ||||
| Cash | $8,000 | |||
| |
107,800 | |||
| Merchandise inventory | 52,800 | |||
| Fixed assets (net) | 130,000 | |||
| -------- | ||||
| Total assets | $298,600 | |||
| ======== | ||||
| Accounts payable (merchandise) | $74,800 | |||
| Owner's equity | 223,800 | |||
| -------- | ||||
| Total liabilities & equity | $298,600 | |||
| ======== | ||||
| Average selling price | $98 | |||
| Average purchase cost per unit | $55 | |||
| Desired ending inventory | ||||
| (% of next month's unit sales) | 60% | |||
| Collections from customers: | ||||
| Collected in month of sale | 20% | |||
| Collected in month after sale | 60% | |||
| Collected two months after sale | 20% | |||
| Projected cash payments: | ||||
| Variable expenses | 30% | of sales | ||
| Fixed expenses (per month) | $10,000 | |||
| $1,000 | ||||
| - | - | - | - | |
| Answer Section: | ||||
| Sales Budget | ||||
| ------------ | ||||
| June | July | August | ||
| ------ | ------ | ------ | ||
| Units | 1,600 | 1,400 | 1,500 | |
| Dollars | $156,800 | 137,200 | 147,000 | |
| Unit Purchases Budget | ||||
| ------------------ | ||||
| June | July | August | ||
| ------ | ------ | ------ | ||
| Desired ending inventory | 840 | 900 | 720 | |
| Current month's unit sales | 1,600 | 1,400 | 1,500 | |
| -------- | -------- | -------- | ||
| Total units needed | 2,440 | 2,300 | 2,220 | |
| Beginning inventory | 960 | 840 | 900 | |
| -------- | -------- | -------- | ||
| Purchases (units) | 1,480 | 1,460 | 1,320 | |
| ======== | ======== | ======== | ||
| Purchases (dollars) | $81,400 | $80,300 | $72,600 | |
| ======== | ======== | ======== | ||
| |
||||
| ----------- | ||||
| June | July | August | ||
| ------ | ------ | ------ | ||
| Cash balance, beginning | $8,000 | $8,000 | $8,000 | |
| Cash receipts: | ||||
| Collections from customers: | ||||
| From April sales | 29,400 | |||
| From May sales | 58,800 | 19,600 | ||
| From June sales | 31,360 | 94,080 | 31,360 | |
| From July sales | 27,440 | 82,320 | ||
| From August sales | 29,400 | |||
| -------- | -------- | -------- | ||
| Total cash available | $127,560 | $149,120 | $151,080 | |
| Cash disbursements: | ||||
| Merchandise | $74,800 | $81,400 | $80,300 | |
| Variable expenses | 47,040 | 41,160 | 44,100 | |
| Fixed expenses | 10,000 | 10,000 | 10,000 | |
| Interest paid | 0 | 184 | 59 | |
| -------- | -------- | -------- | ||
| Total disbursements | $131,840 | $132,744 | $134,459 | |
| -------- | -------- | -------- | ||
| Cash balance before financing | ($4,280) | $16,376 | $16,621 | |
| Less: Desired ending balance | 8,000 | 8,000 | 8,000 | |
| -------- | -------- | -------- | ||
| Excess (deficit) of cash over needs | ($12,280) | $8,376 | $8,621 | |
| -------- | -------- | -------- | ||
| Financing | ||||
| Borrowing | $12,280 | $0 | $0 | |
| Repayment | 0 | (8,376) | (3,904) | |
| -------- | -------- | -------- | ||
| Total effects of financing | $12,280 | ($8,376) | ($3,904) | |
| -------- | -------- | -------- | ||
| Cash balance, ending | $8,000 | $8,000 | $12,717 | |
| ======== | ======== | ======== | ||
| Forecasted Income Statement | ||||
| For Quarter Ended August 31, 19X5 | ||||
| --------------------------------- | ||||
| Sales | ||||
| Cost of goods sold | ||||
| -------- | ||||
| Gross profit | ||||
| -------- | ||||
| Expenses: | ||||
| Variable expenses | ||||
| Fixed expenses | ||||
| Depreciation expense | ||||
| Interest expense | ||||
| -------- | ||||
| Total expenses | $0 | |||
| -------- | ||||
| Net income | $0 | |||
| ======== | ||||
| Forecasted Balance Sheet | ||||
| August 31, 19X5 | ||||
| ------------------------ | ||||
| Assets: | ||||
| Cash | ||||
| Accounts receivable | ||||
| Merchandise inventory | ||||
| Fixed assets (net) | ||||
| -------- | ||||
| Total assets | $0 | |||
| ======== | ||||
| Liabilities & equity: | ||||
| Accounts payable | ||||
| Loans payable | 0 | |||
| Owner's equity | ||||
| -------- | ||||
| Total liabilities & equity | $0 | |||
| ======== | ||||
| - | - | - | - |
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