Part 1 - Schedule of Expected Cash Collections
April May June Quarter
Cash sales $36,000
Credit sales 20,000
Total collections $56,000
Part 2 - Merchandise Purchases Budget
April May June Quarter
Budgeted cost of goods sold $45,000 A
Add desired ending merchandise inv 0 B
Total needs 45,000
Less beginning merchandise inventory 36,000
Required purchases $9,000
D
E
April May June Quarter
March purchases $21,750 $21,750 F
April purchases 4,500 $4,500 $9,000
May purchases
June purchases
Total disbursements $26,250 G
H
Part 3 - Cash Budget
April May June Quarter
Beginning cash balance 8,000
Add collections from customers 56,000
Total cash available 64,000
Less cash disbursements:
For inventory 26,250
For expenses 13,300
For equipment 1,500
Total cash disbursements 41,050
Excess (deficiency) of cash available over
disbursements 22,950 A
Financing: B
Borrowings
Repayments
Interest
Total financing
Ending cash balance C
D
E
Part 4 - Income Statement
Shilow Company F
Income Statement
For the Quarter Ended June 30
Sales G
Cost of goods sold: H
Beginning inventory (Given)
Add purchases (Part 2)
Goods available for sale
Ending inventory (Part 2)
Gross margin
Selling and administrative expenses:
Commissions
Rent ($2,500 × 3)
Depreciation ($900 × 3)
Other expenses (6% of sales)
Net operating income
Interest expense (Part 4)
Net income
Part 5 - Balance Sheet
Shilow Company
Balance Sheet
June 30
Assets
Current assets:
Cash
Accounts receivable
Inventory
Total current assets
Building and equipment—net
Total assets
Liabilities and Stockholders’ Equity
Accounts payable
Stockholders’ equity:
Common stock (Given)
Retained earnings*
Total liabilities and stockholders’ equity
Beginning retained earnings
Add net income
Ending retained earnings
Current Assets March 31
Cash 8,000
A/R 20,000
Inv 36,000
Bldg/Equip 120,000
A/P 21,750
Common 150,000
R/E 12,250
GM Sales 25%
March 50,000
April 60,000
May 72,000
June 90,000
July 48,000
Cash S 60%
Credit S 40%
End Inv 80%
Purch CM 50%
Purch NM 50% April May June
Commis 12% sales $7,200 $8,640 $10,800
Rent 2,500 $2,500 $2,500 $2,500
Other 6% sales $3,600 $4,320 $5,400
Depr 900 Depr are not included here
Equip cash 1,500 April $13,300 $15,460 $18,700 $47,460
Min Cash 4,000
Max borro 20,000
Int/mnth 1%
Current Assets March 31
Cash 8,000
A/R 20,000
Inv 36,000
Bldg/Equip 120,000
A/P 21,750
Common 150,000
R/E 12,250
GM Sales 25%
March 50,000
April 60,000
May 72,000
June 90,000
July 48,000
Cash S 60%
Credit S 40%
End Inv 80%
Purch CM 50%
Purch NM 50%
Commis 12% sales
Rent 2,500
Other 6% sales
Depr 900
Equip cash 1,500 April
Min Cash 4,000
Max borro 20,000
Int/mnth 1%
Part 1
Centrico Medical Laboratory
Flexible Budget Performance Report
For the Month Ended September 30
Budgeted activity (in samples) 700
Actual activity (in samples) 920
Cost Actual Costs Flexible Budget Flexible
Costs Formula Incurred for 920 Based on 920 Budget
(per Unit) Lab samples Lab samples Variance
Variable costs:
Medical supplies
Lab tests
Refreshments for staff and volunteers
Administrative supplies
Total variable cost
Fixed costs:
Staff salaries
Equipment depreciation
Rent
Utilities
Total fixed cost
Total cost
Part 2
Static
Static
Actual Budget
Budget
Var
920 700 220 Lab samples
Var Costs
14,878 10,640 4,238 Med Supp
16,173 12,915 3,258 Lab test
1,779 1,435 344 Snacks
284 490 -206 Admin S
33,114 25,480 7,634 Total Var
FC
19,800 19,800 0 Salaries
3,150 2,850 300 Eq Dep
2,250 2,250 0 Rent
486 450 36 Utilities
25,686 25,350 336 Total FC
58,800 50,830 7,970 Total Cst
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Video Transcript
Solve It Tutorials
Class Chapter (click below to Duration
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4 9 Exercise 9-3 View Transcript 6:36
4 9 Exercise 9-9 View Transcript 8:00
4 9 Problem 9-16 View Transcript 5:43
