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Worksheet Master Budget

1. The document provides sales, expense, and financial information for a company over multiple months to prepare budgets for sales, collections, purchases, payments, capital expenditures, and cash flow on a quarterly basis. 2. Budgets were prepared for sales, purchases, payments to suppliers, operating expenses, capital expenditures, cash flow, income statement, and balance sheet. 3. The cash budget shows a net cash flow of $26,000 for the quarter driven by collections exceeding payments and expenses, with borrowing of $180,000 and repayment of the same amount.

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131 views6 pages

Worksheet Master Budget

1. The document provides sales, expense, and financial information for a company over multiple months to prepare budgets for sales, collections, purchases, payments, capital expenditures, and cash flow on a quarterly basis. 2. Budgets were prepared for sales, purchases, payments to suppliers, operating expenses, capital expenditures, cash flow, income statement, and balance sheet. 3. The cash budget shows a net cash flow of $26,000 for the quarter driven by collections exceeding payments and expenses, with borrowing of $180,000 and repayment of the same amount.

Uploaded by

RUPIKA R G
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Refer: Case 8-33; Pg 411 (Garrison, Noreen & Brewer)

Jan Feb Mar Apr May Jun Jul


Sales (units) 20,000 26,000 40,000 65,000 100,000 50,000 30,000

Monthly Operating Expenses Balance Sheet as on Mar 31

Variable Sal Comm 4% Payables 100,000 Cash 74,000


Fixed Advt 200,000 Div Pay 15,000 Rec 346,000
Rent 18,000 Inv 104,000
Salaries 106,000 Capital 800,000 P/d Ins 21,000
Utilities 7,000 RE 580,000 PPE 950,000
Insurance 3,000 1,495,000 1,495,000
Dep 14,000

Additional Information
1 SP pu 10.00 Mat pu 4.00
2 Sufficient inventory to supply 40% of sales in the following month
Half months purchase paid immediately and other half in the following month
3 Collection pattern
Month t 20%
Month t+1 70%
Month t+2 10%
4 Insurance paid on an annual basis in November
5 CAPEX plan
May 16,000
June 40,000
6 Dividend 15,000 /Qtr
7 Cash bal 50,000
8 Borrowing Start
Repayment End
Interest 1%

PREPARATION of BUDGETS

1 Sales Budget Apr May June Qtr Total


Budgeted Sales (units) 65,000 100,000 50,000 215,000
Sales @ 10 pu 650,000 1,000,000 500,000 2,150,000

Cash Sales - - - -
Credit Sales 650,000 1,000,000 500,000 2,150,000

2 Collection Budget Apr May June Qtr Total

Feb Sales 260,000 26,000 26,000


Mar Sales 400,000 280,000 40,000 320,000
Apr Sales 650,000 130,000 455,000 65,000 650,000
May Sales 1,000,000 200,000 700,000 900,000
Jun Sales 500,000 100,000 100,000
TOTAL 436,000 695,000 865,000 1,996,000

3 Purchase Budget Apr May June Qtr Total


CI Inv
Pur - Mar Sales 160,000 COGS
Pur - Apr Sales 260,000 156,000 156,000
Pur - May Sales 400,000 160,000 240,000 400,000 Op Inv
Pur - Jun Sales 200,000 80,000 120,000 200,000 Purchases
Pur - Jul Sales 120,000 48,000 48,000
316,000 320,000 168,000 804,000

4 Payment Budget Apr May June Qtr Total Opening Pay


Purchase
Mar Pur 200,000 100,000 100,000
Apr Pur 316,000 158,000 158,000 316,000 CI Pay
May Pur 320,000 160,000 160,000 320,000 Payments
Jun Pur 168,000 84,000 84,000
258,000 318,000 244,000 820,000

5 CAPEX Budget Apr May June Qtr Total

Mach 1 - 16,000 - 16,000


Mach 2 - - 40,000 40,000
- 16,000 40,000 56,000

6 Cash Budget Apr May June Qtr Total

Collection from Cust 436,000 695,000 865,000 1,996,000


Payment to Suppliers (258,000) (318,000) (244,000) (820,000)
OPEX Payments:
Sales Comm (26,000) (40,000) (20,000) (86,000)
Advertising (200,000) (200,000) (200,000) (600,000)
Rent (18,000) (18,000) (18,000) (54,000)
Salaries (106,000) (106,000) (106,000) (318,000)
Utilities (7,000) (7,000) (7,000) (21,000)
Insurance - - - -
CAPEX Payments - (16,000) (40,000) (56,000)
Qtrly Dividend (15,000) - - (15,000)

Net Cash Flow (194,000) (10,000) 230,000 26,000


Opening Balance 74,000 50,000 50,000 74,000
(120,000) 40,000 280,000 100,000
Borrowing 170,000 10,000 - 180,000
Repayment (180,000) (180,000)
Interest Payment (5,300) (5,300)
Closing Balance 50,000 50,000 94,700 94,700 Budgeted Balance Sheet

Budgeted Income Statement


Apr May June Qtr Total Cash
Acc Receivables
Sales 650,000 1,000,000 500,000 2,150,000 Inventory
Prepaid Insurance
Material 260,000 400,000 200,000 860,000 PPE (net)
Sales Comm 26,000 40,000 20,000 86,000 TOTAL Assets
Advertising 200,000 200,000 200,000 600,000
Rent 18,000 18,000 18,000 54,000 Acc Payables
Salaries 106,000 106,000 106,000 318,000 Dividends Payable
Utilities 7,000 7,000 7,000 21,000
Insurance 3,000 3,000 3,000 9,000 Capital
Depreciation 14,000 14,000 14,000 42,000 Retained Earnings
Liabilities & Equity
Operating Income 16,000 212,000 (68,000) 160,000

Interest - - 5,300 5,300


Profit Before Tax 16,000 212,000 (73,300) 154,700
Aug Sep
28,000 25,000
Mar Apr May June July
104,000 160,000 80,000 48,000
160,000 260,000 400,000 200,000 120,000
264,000 420,000 480,000 248,000 120,000
104,000 160,000 80,000
316,000 320,000 168,000

Mar Apr May June July


100,000 158,000 160,000
316,000 320,000 168,000
416,000 478,000 328,000
158,000 160,000 84,000
258,000 318,000 244,000
udgeted Balance Sheet

Jun xx Mar xx
94,700 74,000
cc Receivables 500,000 346,000
48,000 104,000
repaid Insurance 12,000 21,000
964,000 950,000
OTAL Assets 1,618,700 1,495,000

cc Payables 84,000 100,000


ividends Payable 15,000 15,000

800,000 800,000
etained Earnings - 580,000
iabilities & Equity 899,000 1,495,000

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