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Project A

This document contains budgets for sales, cash collections, merchandise purchases, cash disbursements, income statement, and balance sheet for Earrings Unlimited for the quarter ending June 30. Key details include: - Budgeted sales are $2.15 million for the quarter - Budgeted cash collections total $1.99 million for the quarter - Budgeted merchandise purchases total $828,000 for the quarter at $4 per unit - Cash balance is projected to be $94,700 at the end of June

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84 views3 pages

Project A

This document contains budgets for sales, cash collections, merchandise purchases, cash disbursements, income statement, and balance sheet for Earrings Unlimited for the quarter ending June 30. Key details include: - Budgeted sales are $2.15 million for the quarter - Budgeted cash collections total $1.99 million for the quarter - Budgeted merchandise purchases total $828,000 for the quarter at $4 per unit - Cash balance is projected to be $94,700 at the end of June

Uploaded by

bb23bb
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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PROJECT A - Case 9-30

Student Name:

Bouledroua Mohamed Fadel

SALES BUDGET:
Budgeted unit sales
Selling price per unit
Total Sales

April
65,000
10
650,000

SCHEDULE OF EXPECTED CASH COLLECTIONS:


April
February sales
26,000
March sales
280,000
April sales
130,000
May sales
June sales
Total Cash Collections
436,000

May
100,000
10
1,000,000

June
50,000
10
500,000

Quarter
215,000
10
2,150,000

May

June

40,000
455,000
200,000
695,000

65,000
700,000
100,000
865,000

Quarter
26,000
320,000
650,000
900,000
100,000
1,996,000

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

Quarter
215,000
12,000
227,000
20,000
207,000
828,000

June
160,000
84,000
244,000

Quarter
100,000
316,000
320,000
84,000
820,000

EARRINGS UNLIMITED
CASH BUDGET
FOR THE THREE MONTHS ENDING JUNE 30
April
May
June
74,000
50,000
50,000
Cash balance
436,000
695,000
865,000
Add collections from customers
Total cash available
510,000
745,000
915,000

Quarter
74,000
1,996,000
2,070,000

MERCHANDISE PURCHASES BUDGET:


Budgeted unit sales
Add desired ending inventory
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

BUDGETED CASH DISBURSEMENTS FOR MERCHANDISE PURCHASES:


April
May
Accounts payable
100,000
April purchases
158,000
158,000
May purchases
160,000
June purchases
Total cash payments
258,000
318,000

Less Disbursements
Merchandise purchases

258,000

318,000

244,000

820,000

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

200,000
18,000
106,000
26,000
7,000
15,000
630,000

200,000
18,000
106,000
40,000
7,000
16,000
705,000

200,000
18,000
106,000
20,000
7,000
40,000
635,000

(120,000)
170,000
170,000

40,000
10,000
10,000

280,000
(180,000)
(5,300)
(185,300)

100,000
180,000
(180,000)
(5,300)
(5,300)

50,000

50,000

94,700

94,700

EARRINGS UNLIMITED
BUDGETED INCOME STATEMENT
FOR THE THREE MONTHS ENDED JUNE 30
Sales
Variable expenses:
Cost of goods sold
Commissions
Contribution Margin
Fixed expenses:
Advertising
Rent
Salaries
Utilities
Insurance
Depreciation
Net operating income
Interest expense
Net income

2,150,000
$4 per unit
4%

860,000
86,000

14,000 x 3

600,000
54,000
318,000
21,000
9,000
42,000

EARRINGS UNLIMITED
BUDGETED BALANCE SHEET
JUNE 30
Assets:
Cash
Accounts receivable (see below)
Inventory
Prepaid insurance
Property and equipment, net

946,000
1,204,000

1,044,000
160,000
(5,300)
154,700

600,000
54,000
318,000
86,000
21,000
56,000
15,000
1,970,000

Total assets

Liabilities and Stockholders' Equity


Accounts payable, purchases
Dividends payable
Capital stock
Retained earnings (see below)
Total liabilities and stockholders' equity

Accounts receivable at June 30:


May sales x ?%
June sales x ?%
Total

Retained earnings at June 30:


Balance, March 31
Add net income
Total
Less dividends declared
Balance, June 30

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