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Robyn Marie Rasberry

Points Available Points Earned


Part A 35
Part B - Excel 10
Part B - Memo 5
Total Points 50 0.0

Part A Extra Credit 5


Part B Extra Credit 2
0.0

FINAL GRADE 0.0

EXCEL COMMENTS ARE FOUND ON INDIVIDUAL SPREADSHEET PAGES

MEMO COMMENTS:
This is an individual project and should be your own work.

Good Formatting Procedures:


On the "Part A Form" tab:
1. Enter Your Name in Cell A1
1a. Read the academic dishonesty statement next to your name.
2. Enter the Number, Name, and Section of Your Course in Cell A2.

3. Add a footer to your spreadsheet. Left justify the file path to your workbook and right justify the date and time.
4. Format your file to print in landscape form
5. Make sure all columns are shown on one page.
6. Insert a page break at a natural schedule break (do not break a schedule on two pages)
7. Perform a print preview to make sure your form prints on 3 pages and is readable.

Instructions:
1. All details regarding Part A are recorded in the "Part A Details" tab.

2. Complete the "Part A Form" tab, entering formulas into each cell marked with a ?. There should be minimal hand typed numbers in your spreadsheet. If y

3. A couple of check figures:


Total Quarterly Required Merchandise Purchases = $703,250
Total Financing for the month of May = $79,000

4. To earn up to 5 additional extra credit points on part A, utilize the "Part A Data" tab to design a data depository for creating "what-if" scenarios for the co
PART A - 35 POINTS

your spreadsheet. If your cell requires a formula, I would expect to see one.

" scenarios for the company.


You have just been hired to work for a company that sells men's neckties, Formal Discomfort Inc. The company has an exclusiv
distribution of the ties, and sales have grown so rapidly over the last few years that it has become necessary to add new member
team. You have been given responsibility for all planning and budgeting. Your first assignment is to prepare a master budget for
starting April 1. You are anxious to make a favorable impression on the president and have assembled the information below.

The company desires a minimum ending cash balance each month of $10,000. The ties are sold to retailers for $8 each. Recent
units are as follows:

The large buildup in sales before and during June is due to Father's Day. Ending inventories are supposed to equal 90% of the n
units. The ties cost the company $5 each.

Purchases are paid for as follows: 50% in the month of purchase and the remaining 50% in the following month. All sales are o
discount, and payable within 15 days. The company has found, however, that only 25% of a month's sales are collected by mont
50% is collected in the following month, and the remaining 25% is collected in the second month following sale. Bad debts hav

The company's monthly selling and administrative expenses are given below:

All selling and administrative expenses are paid during the month, in cash, with the exception of depreciation and insurance exp
purchased during May for $25,000 cash. The company declares dividends of $12,000 each quarter, payable in the first month of
The company's balance sheet at March 31 is given below:
The company has an agreement with a bank that allows it to borrow in increments of $1,000 at the beginning of each month, up
of $140,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounde
quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in incr
while still retaining at least $10,000 in cash.

Required:

Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets:

1. A sales budget by month and in total.


2. A schedule of expected cash collections from sales, by month and in total.
3. A merchandise purchases budget in units and in dollars. Show the budget by month and in total.
4. A schedule of expected cash disbursements for merchandise purchases, by month and in total.
5. A cash budget. Show the budget by month and in total.
6. A budgeted income statement for the three-month period ending June 30. Use the contribution approach.
7. A budgeted balance sheet as of June 30.
Robyn Marie Rasberry
****NOTE: By placing your name in cell A1, you are acknowledging that you understand that this is an individual project and that you are not to copy,
Managerial Accounting (Acctg 302) Section 0800 share, or collaborate with other students to complete this assignment. All forms of academic dishonesty will be submitted to the Dean of Students.

A sales budget, by month and in total.

Sales Budget
April May June Quarter
Budgeted sales in units 35,000 45,000 60,000 140,000
Selling price per unit $8.00 $8.00 $8.00 $8.00
Total sales $280,000.00 $360,000.00 $480,000.00 $1,120,000.00

A schedule of expected cash collections from sales, by month and in total.

Formal Discomfort Inc


Schedule of Expected Cash Collections
April May June Quarter
February sales ? ?
March sales ? ? ?
April sales ? ? ? ?
May sales ? ? ?
June sales ? ?
Total cash collections ? ? ? ?

A merchandise purchases budget in units and in dollars. Show the budget by month and in total.

Formal Discomfort Inc


Merchandise Purchases Budget
April May June Quarter
Budgeted unit sales ? ? ? ?
Add: Desired ending inventory ? ? ? ?
Total needs ? ? ? ?
Less: Beginning inventory ? ? ? ?
Required purchases in units ? ? ? ?

Unit cost ? ? ? ?
Required dollar purchases ? ? ? ?

A schedule of expected cash disbursements for merchandise purchases, by month and in total.

Formal Discomfort Inc


Budgeted Cash Disbursements for Merchandise Purchases
April May June Quarter
Accounts payable ? ?
April purchases ? ? ?
May purchases ? ? ?
June purchases ? ?
Total cash payments ? ? ? ?

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A cash budget. Show the budget by month and in total. Some expenses do NOT apply to a cash budget (Cash deficiency, repayments and interest should be indicated by a minus sign.)

Formal Discomfort Inc


Cash Budget
For the Three Months Ending June 30
April May June Quarter
Cash balance, beginning ? ? ? ?
Add: receipts from customers ? ? ? ?
Total cash available ? ? ? ?

Less cash disbursements:


Purchase of inventory ? ? ? ?
Sales commissions ? ? ? ?
Salaries and wages ? ? ? ?
Utilities ? ? ? ?
Insurance ? ? ? ?
Miscellaneous ? ? ? ?
Dividends paid ? ? ? ?
Land purchases ? ? ? ?
Depreciation ? ? ? ?
Total cash disbursements ? ? ? ?

Excess (deficiency) of cash available over disbursements ? ? ? ?

Financing:
Borrowings ? ? ? ?
Repayments ? ? ? ?
Interest ? ? ? ?
Total financing ? ? ? ?
Ending cash balance ? ? ? ?

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A budgeted income statement for the three-month period ending June 30. Use the contribution approach.

Formal Discomfort Inc


Budgeted Income Statement
For the Three Months Ended June 30
Sales Revenue ?
Variable expenses:
Cost of goods sold ?
Commissions ?
Total variable expenses ?
Contribution margin ?
Fixed expenses:
Wages & Salaries ?
Utilities ?
Insurance ?
Depreciation ?
Miscellaneous ?
Total Fixed Expenses ?
Net operating income ?
Interest expense ?
Net Income ?

A budgeted balance sheet as of June 30.

Formal Discomfort Inc


Budgeted Balance Sheet
30-Jun
Assets
Cash ?
Accounts receivable ?
Inventory ?
Prepaid insurance ?
Fixed Assets, net of depreciation ?
Total assets ?

Liabilities and Stockholders Equity


Accounts payable, purchases ?
Dividends payable ?
Loans payable, bank ?
Capital stock, no par ?
Retained earnings ?
Total liabilities and stockholders equity ?

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Data areas must be properly formatted, labeled, and then utilized in formula creation for Part A Form t
If you choose to do this tab, prepare this tab as if you would for an employer who would be utilizing it
ion for Part A Form tab.
would be utilizing it to create "what-if" scenarios for future budgets.
This is an individual project and should be your own work.

Good Formatting Procedures:


1. Enter Your Name in Cell A1
1a. Read the academic dishonesty statement next to your name.
2. Enter the Number, Name, and Section of Your Course in Cell A2.

3. Add a footer to your spreadsheet. Left justify the file & path to your workbook and right justify the date and time.
4. Format your file to print in portrait orientation
5. Margin should be Left/Right - 0.5 and Top/Bottom - 0.75
6. Perform a print preview to make sure your form prints on 1 page and is readable.

7. Make sure these formatting instructions are on both the "form" and the "scenario" tab. (You will create the scenario

Case Notes:

You are tasked to complete a performance report for the year ended December 31, 2019. RK Installation Company is
Scenario) that will allow the owner to play with all data numbers to see the impact of potential decisions being made.

Instructions:

1. Complete the "Part B Form" tab, entering formulas into each cell marked with a ?. There should be no hand typed n

2. Enter F or U in columns D & G respectively. 2 extra points awarded if you can construct a formula instead of just t

3. Save your worksheet. Then, check your worksheet by changing the revenue in cell D8 to $537.50; the cost of inve

4. Once your spreadsheet is correct, change your spreadsheet back to the original numbers.

5. Using the data on "Part B Form" tab (original data), write a memo (in Microsoft Word) to the owner of RK Installa
6. Make a copy of the "Part B Form" tab, paste it as the last tab of the entire spreadsheet, and rename the new tab "Pa

7. Revise the data in your "Part B Scenario" tab to reflect the results for the following year:

Data
Revenue
Cost of inventory
Wages and salaries
Utilities
Rent
Insurance
Miscellaneous

Actual results:
Revenue
Cost of inventory
Wages and salaries
Utilities
Rent
Insurance
Miscellaneous

Actual unit activity


Planning budget unit activity
s to retail clients. You will be completing two tabs. The first tab, part B form, will show the original data in a performance report.
e owner where the variances came from.

et.

d now be $15,475.35 and the revenue and spending variance for net operating income should be $10,009.50. If you do not get the

anations for these variances. Memo must be clear, concise and no more than 1 page long.
Fixed Cost

$30,600
$3,850
$10,000
$1,250
$1,444

$290,001
$110,204
$57,494
$3,855
$9,500
$6,500
$15,250
PART B - 15 POINTS

nce report. After the performance report is correct, you will be creating a "what-if" scenario tab (named Part B

not get these answers, find the errors in your worksheet and correct them.
Revenue & Cost Revenue & Cost
Per Door Per Window
$668.00 $ 533.00
$242.00 $199.50
$26.90 $71.80

$1.50 $2.36
$41.00 $35.00

Doors Sold Windows Sold


185 324
171 299
Robyn Marie Rasberry
Managerial Accounting (Acctg 302) Section 0800
****NOTE: By placing your name in cell A1, you are acknowledging that you understand that this is an individual project and that you are not to copy, share, or collaborate with other students to
complete this assignment. All forms of academic dishonesty will be submitted to the Dean of Students.

Review Problem: Variance Analysis Using a Flexible Budget

Revenue & Cost Per Revenue & Cost


Data Fixed Cost Door Per Window
Revenue $742.00 $583.00
Cost of inventory $248.00 $267.00
Wages and salaries $26,900 $62.00 $68.00
Utilities $1,875
Rent $6,500
Insurance $3,575 $1.50 $3.65
Miscellaneous $1,650 $45.00 $37.00

Actual results:
Revenue $274,899
Cost of inventory $102,045
Wages and salaries $65,198
Utilities $2,077
Rent $7,500
Insurance $4,500
Miscellaneous $17,328

Doors Sold Windows Sold


Actual unit activity 152 270
Planning budget unit activity 166 299

Enter a formula into each of the cells marked with a ? below

U/F may be hand entered; +2 bonus points if you construct an IF statement to have the answer automatically populate

Construct a flexible budget performance report


Revenue
and
Planning Activity Flexible Spending Actual
Budget Variances U/F Budget Variances U/F Results
Doors Sold ? ? ?
Windows Sold ? ? ?

Revenue ? ? U/F ? ? U/F ?


Expenses:
Cost of inventory ? ? U/F ? ? U/F ?
Wages and salaries ? ? U/F ? ? U/F ?
Utilities ? ? U/F ? ? U/F ?
Rent ? ? U/F ? ? U/F ?
Insurance ? ? U/F ? ? U/F ?
Miscellaneous ? ? U/F ? ? U/F ?
Total expenses ? ? U/F ? ? U/F ?
Net operating income ? ? U/F ? ? U/F ?

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