Planning And Budgeting
Essay by 24 • April 20, 2011 • 316 Words (2 Pages) • 1,406 Views
Master Budget - Victoria Kite Company
Schedule a: Sales budget
October $38,000 December $25,000 February $75,000 April $45,000
November 25,000 January 62,000 March 38,000
Schedule b: Cash Collections Budget
January February March Total
Cash sales $6,200 $22,500 $22,800 $51,500
Collections from prior month 25,000 62,000 75,000 139,500
Total collections $31,200 $84,500 $97,800 $213,500
Schedule c: Purchases Budget
January February March Total
Desired ending inventory $8,050 $6,000 $6,000 $20,050
Plus cost of goods sold 31,000 37,500 19,000 87,500
Total need $39050 $43,500 $25,000 $107,550
Less beginning inventory 39,050 8,050 6,000 53,100
Total purchases $0 $12,300 $19,000 $54,450
Schedule d: Disbursements for purchases
January February March Total
For December $35,000 $35,000
For January − − $0
For February 35,450 $35,450 68,900
For March 19,000 19,000
Total disbursements $35,000 $34,450 $54,450 $122,900
Schedule e and f: Statement of Cash Receipts
January February March Total
Cash Expenses
Salaries and Wages 15,000 15,000 15,000 45,000
Units 7,750 9,375 4,750 21,875
Rent 5,750 5,750 5,750 17,250
Fixtures $3,000
Other 2,500 2,500 2,500 7,500
Total disbursements for expenses $31,000 $32,625 $31,000 $94,625
Noncash expenses:
Depreciation 250 250 250 750
Net Operating Income $30,750 $32,375 $30,750 $93,875
Budgeted Income Statement:
January February March January - March Total
Sales $62,000 $75,000 $38,000 $175,000
Cost if goods sold 31,000 37,500 19,000 87,500
Gross Margin 31,000 37,500 19,000 87,500
Operating Expenses
Salaries and Wages 15,000 15,000 15,000 45,000
Units 7,750 9,375 4,750 21,875
Rent 5,750 5,750 5,750 17,250
Insurance 125 125 125 375
Other 2,500 2,500 2,500 7,500
Interest 129 129 − 258
Depreciation 250 250 250 750
Total Operating Expense $54,754 $61,254 $42,625 $158,633
Net Operating Income $7,246 $13,746 $4,625 $25,617
Budgeted Balance Sheet:
Assets January February March
Current assets
Cash 5,100 37,692 32,992
Accounts receivable 27,300 36,200 2,700
Inventory 8,050 6,000 6,000
Unexpired insurance 1,375 1,250 1,125
Fixed assets 12,250 12,000 11,750
Total current assets 54,075 93,142 77,567
Liabilities and Equities
Liabilities
Accounts payable − 35,450 19,000
Dividends payable − − 1,500
Retained earnings 5,500 − −
Rent payable − 11,000 16,500
Borrowed money 15,500 − −
Total liabilities 21,000 46,450 37,500
Equities
Equity 25,700 25,700 25,700
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