Requirement 1 - Sales budget

Cash collection of credit sales

From sales in Total % collected June

April $1,615,000.00 25.00% $403,750.00
May $608,000.00 44.00% $267,520.00
25.00%
June $1,140,000.00 26.00% $296,400.00
44.00%
July $1,425,000.00 26.00%

Total collected $967,670.00

Requirement 2:
Computation of budgeted inventory

Budgeted Ending inventory

April May June
Next month unit sale 3200 6000 7500
% inventory 19% 19% 19%
Inventory 608 1140 1425
Saftey stock 90 90 90
Ending inventory 698 1230 1515

Requirement 3

Mercandise purchase budget

May June July

Material required fo 6000 7500 4400
Add: Ending invento 1230 1515 926
Requird units of mer 7230 9015 5326
Less: Beginning inve 698 1230 1515
Direct materials to 6532 7785 3811
Purchase price per u 110 110 110
Budgeted cost 718520 856350 419210

Requirement 4

Cash payment
From purchases in Total % paid June
May 718520 40% 287408
June 856350 60% 513810
40%
July 419210 60%
Total Paid 801218

Requirement 5:

Cash budget
June July
Beginning balance $85,000.00 $85,000.00
Add: Collections $967,670.00 $1,024,100.00
Total available cash $1,052,670.00 $1,109,100.00
Cash disbursements
Cash purchases $801,218.00 $594,066.00
Selling and administ $152,000.00 $152,000.00
Total cash disburse $953,218.00 $746,066.00
Cash surplus/ deficit $99,452.00 $363,034.00
Borrowings $0.00 $0.00
Repayment $14,007.42 $34,492.58
Interest $444.58 $316.18
Budgeted ending cas $85,000.00 $328,225.23
July

$152,000.00

$501,600.00
$370,500.00

$1,024,100.00

July
4400
19%
836
90
926
July

342540
251526
594066
Monthly sales budget

Units Unit price

Jan 7500 $57.00
Feb 8500 $57.00
March 10750 $57.00
Total first quarter 26750

Monthly mercandise sales budget

Jan Feb
Next month unit sales 8500 10750
% inventory 20% 20%
Ending inventory 1700 2150
Add: Inventory to be purchased 7500 8500
Required units manufactured 9200 10650
Less: Beginning inventory 4750 1700
Manufactured 4450 8950
Unit price $20.00 $20.00
Total budgeted purchases $89,000.00 $179,000.00

Monthly selling expense Budget

Jan Feb
Cash sales $427,500.00 $484,500.00
Commission 20% 20%
Sales commission $85,500.00 $96,900.00
Sales salaries 4500 4500
Total selling expenses $90,000.00 $101,400.00

General and adminsitrative budget

Jan Feb
General and admin salaries 13000 13000
Maintennace 1900 1900
Total 14900 14900

Monthly capital expenditure

Jan Feb
Equipment 36000 97000
Depreictaion 0 0
Capital expense 36000 97000
Monthly cas budget
Jan Feb
Beginning cash balance $35,500.00 $30,315.00
Cash sales $106,875.00 $121,125.00
Credit sales $130,000.00 $644,362.50
$236,875.00 $765,487.50
Total cash $272,375.00 $795,802.50

Cash disbursement
Purchases $85,000.00 $312,800.00
Selling expenses $90,000.00 $101,400.00
General and administrative expenses $14,900.00 $14,900.00
Capital expenditure $36,000.00 $97,000.00
Land
Income tax
Total cash disbursements $225,900.00 $526,100.00
Cash surplus/deficit $46,475.00 $269,702.50
Borrowing
Repayment $16,000.00 $0.00
Interest $160.00 $0.00
Ending balance $30,315.00 $269,702.50

Income Statement
Sales $1,524,750.00
Less: Cost of goods sold $535,000.00
Gross Margin $989,750.00

Selling expenses $318,450.00

General and adminstrative expenses $44,700.00
Depreciation $18,541.67
EBIT $608,058.33
Interest $160.00
EAT $607,898.33
Tax $182,369.50
Income $425,528.83

Balance sheet

Assets

Cash $238,490.00
Accounts Receivables $568,575.00
Inventory $38,000.00
Total current Assets $845,065.00
Equipment $702,000.00
Less: Accumulated depreciation $85,916.67 $616,083.33
Land $165,000.00
Total Assets $1,626,148.33

Liabilities and equity

Accounts Payable $383,125.00
Taxes payable (April) $182,369.50

Total liabilities $565,494.50

Common stock $474,500.00

Retained earnings $586,153.83
Total shareholder's equity $1,060,653.83

Total liabilities and shareholder's equity $1,626,148.33

Total dollars
$427,500.00
$484,500.00
$612,750.00
$1,524,750.00

March Total
9500 28750
20%
1900
10750
12650
2150
10500 23900
$20.00 $20.00
$210,000.00 478000

March Total
$612,750.00
20%
$122,550.00 $304,950.00
4500 13500
$127,050.00 $318,450.00

March Total
13000 39000
1900 5700
14900 44700

March
30000
0
30000
March
$269,702.50
$153,187.50
$350,550.00
$503,737.50
$773,440.00

$107,000.00
$127,050.00
$14,900.00
$30,000.00
$165,000.00
$91,000.00
$534,950.00
$238,490.00

$0.00
$0.00
$238,490.00