Gabriella G.

Luison
ACC213 – 1269
COMPREHENSIVE PROBLEM ASNWERS

Hillyard Company
Sales Budget
For the Quarter ended March 30, 2011
January February March Quarter
Budgeted Sales in Dollars 400,000 600,000 300,000 1,300,000

Total Budgeted Sales 400,000 600,000 300,000 1,300,000

Hillyard Company
Expected Cash Collection
For the Quarter ended March 30, 2011
January February March Quarter
Accounts Receivable 12/31 224,000 224,000
(80% of 280,000)
January-2011 Sales
20% of 400,000 80,000 80,000
80% of 400,000 320,000 320,000
February-2011 Sales
20% of 600,000 120,000 120,000
80% of 600,000 480,000 480,000
March-2011 Sales
20% of 300,000 60,000 60,000
Total Cash Collection 304,000 440,000 540,000 128,4000

Hillyard Company
Inventory Purchase Budget
For the Quarter ended March 30, 2011
January February March Quarter
Budgeted Cost of Goods 240,000 360,000 180,000 780,000
Sold (60% of Sales)

Add: Desired Ending 90,000 45,000 30,000 165,000

Inventory (25% of Next
Month’s COGS)
Total Needs 330,000 405,000 210,000 945,000
Less: Beginning Inventory 60,000 90,000 45,000 177,000
Required Inventory 270,000 315,000 165,000 768,000
Purchase

Hillyard Company
Cash Disbursement for Purchase
For the Quarter ended March 30, 2011
January February March Quarter
December Purchase 93,000 93,000
January Purchase (50% of 144,000 144,000 288,000
288,000)
February Purchase (50% of 157,500 157,500 315,000
315,000)
March Purchase (50% of 82,500 82,500
165,000)
Total Cash Disbursement 237,000 301,500 240,000 778,500
for Purchase

Hillyard Company
Cash Disbursement for Operating Expenses
For the Quarter ended March 30, 2011
January February March Quarter
Sales and Wages 27,000 27,000 27,000 81,000
Advertising 70,000 70,000 70,000 210,000
Shipping (5% of Sales) 20,000 30,000 15,000 65,000
Other Expenses (3% of 12,000 18,000 9,000 39,000
Sales)
Total Cash Disbursement 129,000 145,000 121,000 395,000

Hillyard Company
Cash Budget
For the Quarter ended March 30, 2011
January February March Quarter
Beginning Cash Balance 48,000 30,000 30,800 48,000
Add: Cash Collection 304,000 440,000 540,000 1,284,000
Total Cash Available 352,000 470,000 570,800 1,332,000
Less: Cash Disbursement
Inventory Purchase 228,000 292,500 240,000 760,500
Operating Expense 129,000 145,000 121,000 395,000
Equipment Purchase 0 1,700 84,500 86,200
Cash Dividend 45,000 0 0 45,000
Total Cash Disbursement 402,000 439,200 445,500 128,6700
Excess/Deficiency (50,000) 30,800 125,300 45,300
Financing:
Borrowings 80,000 80,000
Repayments 0 (80,000) (80,000)
Interest 0 (24,00) (2,400)
(80,000*12%*3/12)
Total Financing 80,000 0 (82,400) (2,400)
Ending Cash Balance 30,000 30,800 42,900 42,900

Hillyard Company
Budgeted Income Statement
For the Quarter ended March 30, 2011
Sales 1,300,000
Less: Cost of Goods Sold 780,000
Gross Margin 520,000
Less: Operating Expenses 395,000
Depreciation 42,000
Operating Income 83,000
Less: Interest Expense 2,400
Net Income 80,600

Hillyard Company
Budgeted Balance Sheet
For the Quarter ended March 30, 2011
Current Asset
Cash 42,900
Accounts Receivable (80% of 300,000) 240,000
Inventory 30,000
Total Current Assets 312,900
Building and Equipment 414,200
(Beginning 370000 + New Purchase 86,200 – Depreciation 42,000
Total Assets 727,100
Liabilities and Equity
Accounts Payable (50% of 165,000)
Equity 82,500
Common Stock
Retained Earnings: 500,000
Beginning 109,000
 Add: Net Income 80,600
Total 189,600 144,600
Less: Cash Dividend 4,500 727,100
Total Liability and Equity