ACC
Textbook Information
Given Data & Information
| Balance Sheet | Necessary Information to Make Master Budget | ||||
| December 31st 2018 | Minimum Ending Cash Balance | $ 15,000 | |||
| Assets | Sales | $14/Kite | |||
| Cash | $ 30,000 | Inventory Costs | $5/Kite | ||
| Accounts Receivable | $ 180,600 | Sales are 100% Credit, payable within 30 days | |||
| Inventory | $ 153,000 | Percentage of sales collected in current month | 40% | ||
| Unexpired Insurance | $ 5,400 | Percentage of sales collected in next month | 10% | ||
| Equipment, Net | $ 62,000 | Percentage of sales collected in the month after that | 50% | ||
| Total Assets | $ 431,000 | Purchases equal expected sales | |||
| Purchases are paid in full the following month | |||||
| Liabilities & Shareholders' Equity | Purchases will cease when inventory exceeds $22,000 | ||||
| Accounts Payable | $ 151,500 | Cash dividends are paid quarterly, starting Jan. 15th | $ 2,400 | ||
| Dividends Payable | $ 2,400 | Rent: payment at beginning of month | $ 500 | ||
| Rent Payable | $ 27,950 | Rent: 5% of quarterly sales over $50,000 is paid on Jan. 10th | $ 27,950 | ||
| Owners' Equity | $ 249,150 | Fixtures bought in March | $ 30,000 | ||
| Total Liabilities & Shareholders' Equity | $ 431,000 | Land bought in March | $ 280,000.00 | ||
| Borrowing and repaying in multiples of $2,000 | |||||
| Interest Rate is paid when principal can be repaid | 9% | Annual | |||
| Recent and Forecasted Sales | Income Tax Rate | 35% | |||
| October | $ 280,000 | ||||
| November | $ 168,000 | ||||
| December | $ 161,000 | ||||
| January | $ 355,000 | ||||
| February | $ 419,000 | ||||
| March | $ 268,000 | ||||
| April | $ 292,000 | ||||
| Monthly Operating Expenses | |||||
| Wages & Salaries | $ 80,000 | ||||
| Insurance Expired | $ 450 | ||||
| Depreciation | $ 900 | ||||
| Miscellaneous | $ 4,000 | ||||
| Rent ($500/month + 5% of quarterly sales over $50,000) |
Schedule A
| Sales Budget | |||
| January | February | March | |
| Credit sales, 100% | |||
Schedule B
| Cash Collections From Customers | |||
| January | February | March | |
| On accounts receivable from: | |||
| 40% of Current Month Sales | |||
| 10% of Previous month's Sales | |||
| 50% of Second Previous Month's Sales | |||
| Total Collections | |||
Schedule C
| Inventory Purchases Budget | ||||
| December | January | February | March | |
| Desired Ending Inventory | $ 22,000 | $ 22,000 | $ 22,000 | |
| Cost of Goods Sold | ||||
| Total Needed | ||||
| Beginning Inventory | ||||
| Purchases | $ 151,500 | |||
| *Purchases in December equal Accounts Payable in December | ||||
| COGS Percentage | ||||
Schedule D
| Cash Disbursements for Purchases | ||||
| January | February | March | April | |
| 100% of Previous Month's Purchases |
Schedule E
| Operating Expense Budget | ||||
| January | February | March | Quarterly Total | |
| Wages & Salaries | $ - 0 | $ - 0 | $ - 0 | $ - 0 |
| Insurance | $ - 0 | $ - 0 | $ - 0 | $ - 0 |
| Depreciation | $ - 0 | $ - 0 | $ - 0 | $ - 0 |
| Miscellaneous | $ - 0 | $ - 0 | $ - 0 | $ - 0 |
| Rent | $ - 0 | $ - 0 | $ - 0 | $ - 0 |
Cash Budget
| Cash Budget | |||
| For Three Months Ending March 31st, 2018 | |||
| January | February | March | |
| Beginning Cash Balance | |||
| Minimum Cash Balance Desired | |||
| Available Cash Balance | |||
| Cash from customers | |||
| Payment for inventory | |||
| Rent | |||
| Wages & Salaries | |||
| Miscellaneous Expenses | |||
| Dividends | |||
| Payments for Interest | |||
| Purchase of Fixtures | |||
| Purchase of Land | |||
| Net Cash Receipts & Disbursements | |||
| Excess (Deficiency) of Cash before Financing | |||
| Financing | |||
| Borrowing at beginning of period (Round to $2,000) | |||
| Repayment at end of period | |||
| Ending Cash Balance* | |||
| *Beg Bal. + Net Cash Receipts (+/-) Borrowed or Repayment |
Capital Budget
| Capital Budget (Bank Loan) | |||
| January | February | March | |
| Beginning Balance | |||
| Annual Interest Expense @ 9% | |||
| Ending Balance Before Repayment | |||
| Principal Repayment | |||
| Interest Payment | |||
| Ending Balance | |||
Budgeted Income Statement
| Budgeted Income Statement |
| For Three Months Ending March 31st, 2018 |
| Sales |
| Cost of Goods Sold |
| Gross Profit |
| Operating Expenses |
| Salaries, Wages, & Commissions |
| Rent |
| Depreciation |
| Insurance |
| Miscellaneous |
| Total Operating Expenses |
| Earnings Before Interest & Taxes |
| Interest Expense |
| Earnings Before Taxes |
| Income Tax Expense (35%) |
| Net Income |
Budgeted Balance Sheet
| Budgeted Balance Sheet | ||||
| March 31st, 2018 | ||||
| Assets | ||||
| Cash | *March Accounts Receivable | |||
| *Accounts Receivable | -March Sales x 60% | |||
| Merchandise Inventory | -February Sales x 50% | |||
| Unexpired Insurance | ||||
| Total Current Assets | ||||
| Long Term Assets | ||||
| Equipment, Net | ||||
| Fixtures | ||||
| Land | ||||
| Total Long Term Assets | ||||
| Total Assets | ||||
| Liabilities | ||||
| Accounts Payable | ||||
| Rent Payable | ||||
| Interest Payable | ||||
| Notes Payable | ||||
| Income Tax Payable | ||||
| Dividends Payable | ||||
| Total Liabilities | ||||
| Shareholders' Equity | ||||
| Owners' Equity | ||||
| Retained Earnings | ||||
| Total Shareholders' Equity | ||||
| Total Liabilities & Shareholders' Equity |