Schedule of expected cash collections

December January February

total sales 280,000 400,000 600,000

Cash sales ( 20% of total sales ) 80,000 120,000

Credit sales ( 40% of total sales )( will be collected int following month ) 224,000 320,000
total cash will be collected from sales 304,000 440,000

Merchandise purchase budget ( cgs + ending - beginning )

January February
cost of goods sold (60% of toal sales ) 240,000 360,000
add desired ending inventory ( 25% of next month cgs ) 90,000 45,000
Total needs 330,000 405,000
Less beginning inventory 60,000 90,000
budgeted purchaes 270,000 315,000

Schedule of expected cash disburstment for inventory purchase

January February
Total purchase 270,000 315,000
March 93,000
April 135,000 135,000
May 157,500
June
total cash disburstment for inventory purchase 228,000 292,500

Schedule of expected cash disburstment for selling and administrative exp

January February
salary and wages 27,000 27,000
advertosomg exp 70,000 70,000
shipping exp ( 5% of total sales 20,000 30,000
other exp ( 3% of total sales 12,000 18,000
total cash disburstment forselling and administrative exp 129,000 145,000

Cash budget
January February
beginning cash balance 48,000 30,000
total cash will be collected from sales 304,000 440,000
total cash will be available before cash disburstment 352,000 470,000
less cash disbursements
total cash disburstment for inventory purchase 228,000 292,500
total cash disburstment forselling and administrative exp 129,000 145,000
Purchase of copy machine 0 1,700
Payment of cash dividends 45,000 0
Purchase of equipment 0 0
total cash disbursments 402,000 439,200
excess / deficiency -50,000 30,800
add financing 80,000 0
cash at end 30,000 30,800

Income statement
sales
less cost of goods sold ( 60% of total sales )
gross profit
less operating exp
salary and wages
advertosomg exp
shipping exp ( 5% of total sales
other exp ( 3% of total sales
Depreciaton exp
Total operating exp
operating income
less interest exp
income before tax

Balance sheet
As on 30 June
Assets
cash ( cash budget cash at end )
a/c receivable
M.inventory ( Purchase budget ending inventory of june )
building and equipment net

Liabilities + share holder equity

A/c payable ( 50% of June purchase )
Capital
retained earning 109000-45000+80600
 March Quarter
300,000 1,300,000

60,000 260,000
480,000 1,024,000
540,000 1,284,000

g)
March Quarter April
180,000 780,000 120,000
30,000 30,000
210,000 810,000
45,000 60,000
165,000 750,000

hase
March Quarter
165,000 750,000
93,000
270,000
157,500 315,000
82,500 82,500
240,000 760,500

rative exp
March Quarter
27,000 81,000
70,000 210,000
15,000 65,000
9,000 39,000
121,000 395,000

March Quarter
30,800 48,000
540,000 1,284,000
570,800 1,332,000

240,000 760,500
121,000 395,000
0 1,700
0 45,000
84,500 84,500
445,500 1,286,700
125,300 45,300
-82,400 -2,400
42,900 42,900

1,300,000
780,000
520,000

81,000
210,000
65,000
39,000
42,000
437,000
83,000
2,400
80,600

42,900
240,000
30,000
414,200
727,100

82,500
500,000
144,600
727,100
 Schedule of expected cash collections
April May June
total sales 60,000 72,000 90,000

Cash sales ( 60% of total sales ) 36,000 43,200 54,000

Credit sales ( 40% of total sales )( will be collected int following month ) 20,000 24,000 28,800
total cash will be collected from sales 56,000 67,200 82,800

Merchandise purchase budget ( cgs + ending - beginning )

April May June
cost of goods sold ( 75% of total sales ) 45,000 54,000 67,500
add desired ending inventory ( 80% of NMCGS) 43,200 54,000 28,800
Total needs 88,200 108,000 96,300
Less beginning inventory 36,000 43,200 54,000
budgeted purchaes 52,200 64,800 42,300

Schedule of expected cash disburstment for inventory purchase

April May June
Total purchase 52,200 64,800 42,300
March 21,750 0 0
April 26,100 26,100
May 32,400 32,400
June 21,150
total cash disburstment for inventory purchase 47,850 58,500 53,550

Schedule of expected cash disburstment for selling and administrative exp

April May June
commission exp ( 12 % of total sales ) 7,200 8,640 10,800
rent exp 2,500 2,500 2,500
other exp ( 6% of total sales ) 3,600 4,320 5,400
total cash disburstment for selling and administrative exp 13,300 15,460 18,700

Cash budget
April May June
beginning cash balance 8,000 4,350 4,590
total cash will be collected from sales 56,000 67,200 82,800
total cash will be available before cash disburstment 64,000 71,550 87,390
less cash disbursements
total cash disburstment for inventory purchase 47,850 58,500 53,550
total cash disburstment for selling and administrative exp 13,300 15,460 18,700
Purchase of equipment 1,500 0 0
total cash disbursments 62,650 73,960 72,250
excess / deficiency 1,350 -2,410 15,140
add financing 3,000 7,000 -10,230
cash at end 4,350 4,590 4,910
interest
3000 30 30 30
7000 0 70 70

Income statement
sales 222,000
less cost of goods sold ( 75% of total sales ) 166,500
gross profit 55,500
less operating exp
commission exp ( 12 % of total sales ) 26,640
rent exp 7,500
other exp ( 6% of total sales ) 13,320
Depreciaton exp 2,700
Total operating exp 50,160
operating income 5,340
less interest exp 230
income before tax 5,110

Balance sheet
As on 30 June
Assets
cash ( cash budget cash at end ) 4,910
a/c receivable (June cr sales ) 36,000
M.inventory ( Purchase budget ending inventory of june ) 28,800
building and equipment net (120000+1500-2700) 118,800
188,510
Liabilities + share holder equity
A/c payable ( 50% of June purchase ) 21,150
Capital 150,000
retained earning (12250+5110) 17,360
188,510
 Quarter
222,000

133,200
72,800
206,000

Quarter July
166,500 36,000
28,800
195,300
36,000
159,300

e
Quarter
159,300
21,750
52,200
64,800
21,150
159,900

ve exp
Quarter
26,640
7,500
13,320
47,460

Quarter
8,000
206,000
214,000

159,900
47,460
1,500
208,860
5,140
-230
4,910
 90 3090
140 7140
10230