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PROJECT A - Case 9-30

Student Name:

david

SALES BUDGET:
April
Budgeted unit sales
Selling price per unit
Total Sales

65,000
####### $

May

100,000
50,000
1,000,000 $ 500,000

SCHEDULE OF EXPECTED CASH COLLECTIONS:


April
February sales
26,000
March sales
280,000
April sales
130,000
May sales
June sales
Total Cash Collections
436,000

MERCHANDISE PURCHASES BUDGET:


April
Budgeted unit sales
40,000
Add desired ending inventory
65,000
Total needs
Less beginning inventory
(26,000)
Required purchases
79,000
Cost of purchases @ $4 per unit
316,000

June

May

215,000
########

695,000

65,000
700,000
########
865,000

Quarter
26,000
320,000
650,000
900,000
100,000
########

May
20,000
100,000

June
12,000
50,000

Quarter
72,000
215,000

(20,000)
42,000
168,000

(86,000)
201,000
804,000

40,000
455,000
200,000

(40,000)
80,000
320,000

June

Quarter

BUDGETED CASH DISBURSEMENTS FOR MERCHANDISE PURCHASES:


April
May
June
Accounts payable
100,000
April purchases
158,000
158,000
May purchases
160,000
160,000
June purchases
84,000
Total cash payments
258,000
318,000
244,000

Quarter
100,000
316,000
320,000
84,000
820,000

EARRINGS UNLIMITED
CASH BUDGET
FOR THE THREE MONTHS ENDING JUNE 30
April
May
June
74,000
50,000
50,000
Cash balance
436,000
695,000
865,000
Add collections from customers
Total cash available
510,000
745,000
915,000

Quarter
74,000
########
########

Interest on borrowings

5,300

5,300

Merchandise purchases
Advertising
Rent
Salaries
Commissions
Utilities
Equipment purchases
Dividends paid
Total Disbursements

258,000
200,000
18,000
106,000
26,000
7,000

Excess (deficiency) of receipts


over disbursements
Financing:
Borrowings
Repayments
Interest
Total financing
Cash balance, ending

318,000
200,000
18,000
106,000
40,000
7,000
16,000

244,000
200,000
18,000
106,000
20,000
7,000
40,000

15,000
630,000

705,000

640,000

#######

40,000

274,700

94,700

170,000

10,000
180,000

180,000
180,000

94,700

94,700

170,000

180,000

50,000

50,000

EARRINGS UNLIMITED
BUDGETED INCOME STATEMENT
FOR THE THREE MONTHS ENDED JUNE 30
########

Sales
Variable expenses:
Cost of goods sold
Commissions
Contribution Margin
Fixed expenses:
Advertising
Rent
Salaries
Utilities
Insurance
Depreciation
Net operating income
Interest expense
Net income

600,000
54,000
318,000
21,000
9,000
42,000
5,300

860,000
86,000
########

154,700

EARRINGS UNLIMITED
BUDGETED BALANCE SHEET
JUNE 30
Assets:
Cash
Accounts receivable (see below)
Inventory
Prepaid insurance

94,700
500,000
48,000
12,000

86,000
600,000
54,000
318,000
86,000
21,000
56,000
15,000
########

Property and equipment, net


Total assets

964,000
########

Liabilities and Stockholders' Equity


Accounts payable, purchases
Dividends payable
Capital stock
Retained earnings (see below)
Total liabilities and stockholders' equity

84,000
15,000
800,000
719,000
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