Managerial Accounting

Student Name: ___ kasem Jabary

Sales Budget
November December January
February
March
Quarter
300,000
300,000
500,000
600,000
400,000
1,500,000

Schedule of expected cash collections:

January
February
March
Quarter
50,000
60,000
40,000
150,000

Sales

Cash sales
Credit sales:
November sales
December Sales
January sales
February sales
March sales
Total cash collections

135,000
135,000

135,000
225,000

225,000
270,000

135,000
270,000
450,000
270,000

320,000

420,000

535,000

1,275,000

Schedule of purchases:
January
350,000

February
420,000

March
280,000

Quarter
1,050,000

105,000
455,000
87,500
367,500

70,000
490,000
105,000
385,000

52,500
332,500
70,000
262,500

52,500
1,102,500
87,500
1,015,000

February

March

192,500
131,250

Quarter
245,000
367,500
385,000
131,250

323,750

1,128,750

Schedule of cash disbursements for operating expenses:

January
February
March
Salaries and wages
10,000
10,000
###
Advertising
15,000
15,000
###
Shipping
20,000
24,000
16,000
Other expenses
10,000
12,000
8,000
Total cash disbursements
55,000
61,000
49,000

Quarter
30,000
45,000
60,000
30,000
165,000

3
Budgeted cost of goods
sold
Add desired ending
inventory
Total needs
Less beginning inventory
Required purchases

December purchases
January purchases
February purchases
March purchases
Total cash
disbursements for
purchases

b. Disbursements for purchases

January
245,000
183,750

428,750

183,750
192,500

376,250

for operating expenses

5 Cash budget:
Cash balance, beginning
Add cash collections
Total cash available
Less disbursements:
Purchases of inventory
Operating expenses
Purchases of
equipment*
Cash dividends*
Total disbursements
Excess (deficiency) of
cash
Financing:
Borrowing*
Repayments*
Interest*
Total effect of financing
Cash balance, ending
*Input appropriate formulas or given amounts
6

January
60,000
320,000
380,000

February
30,000
420,000
450,000

March
30,000
535,000
565,000

Quarter
60,000
1,275,000
1,335,000

428,750
55,000

376,250
61,000

323,750
49,000

1,128,750
165,000

2,000

90,000

50,000
533,750

439,250

462,750

92,000
50,000
1,435,750

(153,750)

10,750

102,250

(100,750)

183,750

204,837
(183,750)
(1,838)
19,250
30,000

134,635
(204,837)
(2,048)
(72,250)
30,000

523,222
(388,587)
(3,886)
130,749
29,999

183,750
30,000

Income statement:

HILLYARD COMPANY
Income Statement
For the Quarter Ended March 31
Sales
Less cost of goods sold:
Beginning inventory (given)
Add purchases (Part 3)
Goods available for sale
Ending inventory (Part 3)
Gross margin
Less operating expenses:
Salaries and wages (Part 4)
Advertising (Part 4)
Shipping (Part 4)
Depreciation
Other expenses (Part 4)
Net operating income
Less interest expense (Part 5)
Pre-tax Income

1,500,000
87,500
1,015,000
1,102,500
52,500

30,000
45,000
60,000
45,000
30,000

1,050,000
450,000

210,000
240,000
3,886
236,114

Balance sheet:

HILLYARD COMPANY
Balance Sheet
31-Mar
Assets
Current assets:
Cash
Accounts receivable
Inventory
Total current assets
Buildings and equipment,
net
Total assets
Liabilities and Equity
Current liabilities:
Accounts payable
Line of Credit Payable

30,000
630,000
52,500
712,500
367,000
1,079,500

131,250
134,635
265,885

Stockholders equity:
Capital stock
Retained earnings*
Total liabilities and equity
*

Retained earnings, beginning

Add net income
Total
Deduct cash dividends
Retained earnings, ending

500,000
313,614

813,614
1,079,499
127,500
236,114
363,614
50,000
313,614