AREEBA ABDUL MAJEED (10783)

Master budget
1- SCHEDULE OF EXPECTED CASH COLLECTIONS
APRIL
Cash sales 36,000
Credit sales (40%) 20,000
Total cash collections 56,000

2- MERCHANDISE PURCHASES BUDGET:

APRIL
Budgeted cost of goods sold 45,000
Add desired ending inventory 43,200
Total needs 88,200
Less beginning inventory 36,000
Required purchases 52,200

3- SCHEDULE OF EXPECTED CASH DISBURSEMENTS FOR MERCHAND

APRIL
March purchases 21,750
April purchases 26,100
May purchases —
June purchases —
Total cash disbursements for purchases 47,850

4. SCHEDULE OF EXPECTED CASH DISBURSEMENTS FOR SELLING AND ADM

APRIL
commission 12% of total sales 7,200
rent expence 2,500
Other expenses 6% of total sales 3,600
Total cash disbursements for selling and administrative expenses 13,300

5. CASH BUDGET
APRIL
Cash balance, beginning 8,000
Add cash collections 56,000
Total cash available 64,000
Less cash disbursements:
Purchases of inventory 47,850
expences 13,300
Purchases of equipment 1,500
Total cash disbursements 62,650
Excess (defi ciency) of cash 1,350
Financing 3,000
Cash balance at the end of quarter 4,350

5. PREPARE AN ABSORPTION COSTING INCOME STATEMENT FOR THE

particulars
sales
cost of good sold
gross profit
expenses
selling n adm exp 47,460
depriciation exp 2,700
total operating expence
operating income
interest on loan
income before tax

6. PREPARE A BALANCE SHEET AS ON JUNE 30

current and fixed assets
cash 4,910
accounts receivable 36,000
closing stock 28,800
total assets 69,710
Building & equipment (1200000+1500) 121,500
less depreciations (2700) 118,800
total assets 188,510
EED (10783)

SH COLLECTIONS
MAY JUNE QUARTER
43,200 54,000 133,200
24,000 28,800 72,800
67,200 82,800 206,000

ASES BUDGET:
MAY JUNE QUARTER
$54,000 67,500 166,500
54,000 28,800 126,000
108,000 96,300 292,500
43,200 54,000 133,200
64,800 42,300 159,300

TS FOR MERCHANDISE PURCHASES:

MAY JUNE QUARTER
0 0 21,750
26,100 0 52,200
32,400 32,400 64,800
0 21,150 21,150
58,500 53,550 159,900

SELLING AND ADMINISTRATIVE EXPENSES

MAY JUNE QUARTER
8,640 10,800 26,640
2,500 2,500 7,500
4,320 5,400 13,320
15,460 18,700 47,460

ET
MAY JUNE QUARTER
4,350 4,190 8,000
67,200 82,800 206,000
71,550 87,390 214,000

58,500 53,550 159,900

15,460 18,700 47,460
0 0 1,500
73,960 72,250 208,860
-2,410 15,140 5,140
7000 -10,230 -230
 4,590 4,190 4,910

ATEMENT FOR THE QUARTER ENDING

222,000
166,500
55,500

50,160
5,340
230
5,110

T AS ON JUNE 30
Current liabilities and equaties
accounts payable (50%) 21,150
total libilites 21,150
common stock 150,000
retained earning(12250+5110) 17,360
167,360

total equity and liabilities 188,510