Professional Documents
Culture Documents
April
65,000
$
10
$ 650,000
May
100,000
$
10
$ 1,000,000
$
$
June
50,000
10
500,000
$
May
$ 40,000
$ 455,000
$ 200,000
$ 695,000
10
June
$
$
$
$
Quarter
215,000
$
10
$ 2,150,000
65,000
700,000
100,000
865,000
Quarter
$
26,000
$ 320,000
$ 650,000
$ 900,000
$ 100,000
$ 1,996,000
April
May
65,000
100,000
40,000
20,000
105,000
120,000
26,000
40,000
79,000
80,000
$ 316,000 $ 320,000 $
June
Quarter
50,000
215,000
12,000
12,000
62,000
227,000
20,000
26,000
42,000
201,000
168,000 $ 804,000
$
$
$
$
$
EARRINGS UNLIMITED
CASH BUDGET
FOR THE 3 MONTHS ENDING JUNE 30
April
May
Cash balance
$ 74,000 $ 50,000 $
Add collections from customers
$ 436,000 $ 695,000 $
Total cash available
$ 510,000 $ 745,000 $
June
50,000
865,000
915,000
Quarter
$
74,000
$ 1,996,000
$ 2,070,000
Less disbursements
Merchandise purchases
Advertising
244,000
200,000
$
$
$ 258,000
$ 200,000
$ 318,000
$ 200,000
$
$
Quarter
100,000
316,000
320,000
84,000
820,000
820,000
600,000
Rent
Salaries
Commissions
Utilities
Equipment purchases
Dividends paid
Total disbursements
$ 18,000
$ 106,000
$ 26,000
$
7,000
$
$ 15,000
$ 630,000
$ 18,000
$ 106,000
$ 40,000
$
7,000
$ 16,000
$
$ 705,000
$
$
$
$
$
$
$
18,000
106,000
20,000
7,000
40,000
635,000
$
54,000
$ 318,000
$
86,000
$
21,000
$
56,000
$
15,000
$ 1,970,000
280,000
$ (120,000) $
40,000
$ 170,000
10,000
$ 170,000
10,000
$
$ (180,000) $
$
(5,300) $
$ (185,300) $
50,000
50,000
94,700
EARRINGS UNLIMITED
BUDGETED INCOME STATEMENT
FOR THE 3 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
$ 2,150,000
$ 860,000
$ 86,000
$ 600,000
$ 54,000
$ 318,000
$ 21,000
$
9,000
$ 42,000
$ 946,000
$ 1,204,000
$ 1,044,000
$ 160,000
$
5,300
$ 154,700
EARRINGS UNLIMITED
BUDGETED BALANCE SHEET
JUNE 30
Assets:
Cash
Accounts receivable (see below)
Inventory
Prepaid insurance
Property and equipment, net
Total assets
$
94,700
$ 500,000
$
48,000
$
12,000
$ 964,000
$ 1,618,700
100,000
180,000
(180,000)
(5,300)
(5,300)
94,700
$
84,000
$
15,000
$ 800,000
$ 719,700
$ 1,618,700
Working Data
Accounts receivable at June 30:
May sales x 10%
June sales x 80%
Total
$
$
$
100,000
400,000
500,000
$
$
$
$
$
580,000
154,700
734,700
15,000
719,700
10%
80%
Sales
Collection %
26,000 1st month
20%
40,000 2nd month
70%
65,000 3rd month
10%
100,000
50,000
100,000
50,000
Sales
March
July
Starting Inv
Payment
Per Month
65,000
30,000
40%
50%
50%
50%
4% Commission Rate
Interest Calculations
$
10,000
$
170,000
215,000 $
12,000 $
21,000 $
950,000 $
2 $
3 $
$
$
$
1%
1%
3 $
3 $
4.00
9,000
42,000
9,000
42,000
56,000
200
5,100
5,300