Description
please use formulas as well
Schedule of Cash Collections
April
May
June
Quarter
Cash
Credit
Total
0
0
Inventory Purchases Budget
April
May
June
Budgeted COGS
Add desired end inventory
Total Needs
Less: Beg inventory
Required Purchases
Schedule of Expected Cash Disbursements – Purchases
April
May
June
March Purchases
April Purchases
May Purchases
June Purchases
Total Pur. Disbursements
Quarter
$
Quarter
$
–
–
Operating Expenses
April
May
June
Quarter
Salaries and wages
Rent
Depreciation
Other expenses
Total Op Expenses
less non cash
total cash op expenses
Cash Budget
April
Cash balance, beg.
Add Cash Collections
Total Cash Available
Less cash disbursements:
For inventory
For expenses
For Equipment
Total disbursements
Excess(deficiency) Cash
Financing:
Borrowing
Repayment
Interest
Total Financing
Cash balance, end.
May
June
Quarter
still owed
$0
Income Statement
Sales
Less COGS:
Beg Inventory
Add Purchases
Goods Available
Less End Inventory
Gross Margin
Less Operating Expense:
Commissions
Rent
Depreciation
Other Expenses
Net Operating Income
Less Net Interest Expense
Net Income
Balance Sheet
Current Assets:
Cash
Accounts Rec.
Inventory
Total Current Assets
Fixed Assets
Total Assets
Liabilities and Equity:
Accounts Payable
Loan Payable
Capital Stock
Retained Earnings
Total Liabilities
Data Required
Balance Sheet items as of Mar 31:
Cash
Accounts Rec.
Inventory
Buildings and Equipment (Net)
Accounts Payable
Capital Stock
Retained Earnings
$17,000
$40,000
$32,000
$150,000 $239,000
$62,250
$70,000
$106,750 $239,000
Gross Profit is 40% of sales
Change Factor
Actual and Budgeted sales data:
budget modified
1 march
april
may
june
july
100000
125000
138000
125000
130000
1
1
1
1
100000
125000
138000
125000
130000
Sales are 40% for Cash and 60% on credit. Credit sales are collected the month after the sale
cash sales
0.4
credit sales
0.6
Cost of Goods sold percentage is:
1 – gross profit %
0.6
Company wants 35% of next months sales on hand (inventory rerquired for that)
desired E/I
0.35
Company pays supplier of inventory on average 20% in month of purchase and 80% in month after purchase.
payments in month
0.2
payments next month
0.8
Operating expenses:
Variable
Other expenses and commiss.
Fixed
Depreciation per month
Salaries and wages per month
Rent per month
0.05 of sales
$
$
$6,000
19,000
10,000
Management wants to buy equipment in April with a projected cost of $22,000
Management wants to have at least $25,000 in cash at the end of every month
The bank requires that borrowings all take place at the first of the month and
repayments occur at the end of the month. Interest is 4% per annum. Borrowings must
be in increments of $1,000. Interest is paid at repayment.
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