Schedule of Expected Cash Disbursements - Merchandise Purchases
JulyAugustSeptemberQuarter
June purchases22,400.00$ 22,400.00$
July purchases21,153.20$ 21,153.20$ 42,306.40$
August purchases20,848.80$ 20,848.80$ 41,697.60$
September purchases20,673.60$ 20,673.60$
Total Disbursements43,553.20$ 42,002.00$ 41,522.40$ 127,077.60$
Sheet1
| Schedule of Expected Cash Disbursements - Merchandise Purchases |
| | July | August | September | Quarter |
| June purchases | $ 22,400.00 | | | $ 22,400.00 |
| July purchases | $ 21,153.20 | $ 21,153.20 | | $ 42,306.40 |
| August purchases | | $ 20,848.80 | $ 20,848.80 | $ 41,697.60 |
| September purchases | | | $ 20,673.60 | $ 20,673.60 |
| Total Disbursements | $ 43,553.20 | $ 42,002.00 | $ 41,522.40 | $ 127,077.60 |
JulyAugustSeptemberQuarter
Comissionns9,000.00$ 9,000.00$ 9,000.00$ 27,000.00$
Rent1,200.00$ 1,200.00$ 1,200.00$ 3,600.00$
Other expenses2,600.00$ 2,800.00$ 3,000.00$ 8,400.00$
Total Disbursements12,800.00$ 13,000.00$ 13,200.00$ 39,000.00$
Schedule of Expected Cash Disbursements - Selling and Administrative Expenses
Sheet1
| Schedule of Expected Cash Disbursements - Selling and Administrative Expenses |
| | July | August | September | Quarter |
| Comissionns | $ 9,000.00 | $ 9,000.00 | $ 9,000.00 | $ 27,000.00 |
| Rent | $ 1,200.00 | $ 1,200.00 | $ 1,200.00 | $ 3,600.00 |
| Other expenses | $ 2,600.00 | $ 2,800.00 | $ 3,000.00 | $ 8,400.00 |
| Total Disbursements | $ 12,800.00 | $ 13,000.00 | $ 13,200.00 | $ 39,000.00 |
JulyAugustSeptemberQuarter
Cash balance, beginning4,000.00$ 3,996.80$ 3,394.80$ 11,391.60$
Add Cash collections47,450.00$ 53,400.00$ 57,400.00$ 158,250.00$
Total Cash available51,450.00$ 57,396.80$ 60,794.80$ 169,641.60$
Less cash disbursement
For Inventory43,553.20$ 42,002.00$ 41,522.40$ 127,077.60$
For operating expenses12,800.00$ 13,000.00$ 13,200.00$ 39,000.00$
For equipment2,100.00$ 3,000.00$ -$ 5,100.00$
Total disbursements58,453.20$ 58,002.00$ 54,722.40$ 171,177.60$
Excess (deficiency) of cash(7,003.20)$ (605.20)$ 6,072.40$ (1,536.00)$
Financing:
Borrowings11,000.00$ 4,000.00$ -$ 15,000.00$
Repayments-$ -$ (2,000.00)$ (2,000.00)$
Interest*-$ -$ (615.00)$ (615.00)$
Total financing11,000.00$ 4,000.00$ (2,615.00)$ 12,385.00$
Cash balance, ending3,996.80$ 3,394.80$ 3,457.40$ 3,457.40$
* $11,000 x 1.5% x 3 = $495
$4,000 x 1.5% x 2 = $120
Total interest $615
Cash Budget
Sheet1
| Cash Budget |
| | July | August | September | Quarter |
| Cash balance, beginning | $ 4,000.00 | $ 3,996.80 | $ 3,394.80 | $ 11,391.60 |
| Add Cash collections | $ 47,450.00 | $ 53,400.00 | $ 57,400.00 | $ 158,250.00 |
| Total Cash available | $ 51,450.00 | $ 57,396.80 | $ 60,794.80 | $ 169,641.60 |
| Less cash disbursement |
| For Inventory | $ 43,553.20 | $ 42,002.00 | $ 41,522.40 | $ 127,077.60 |
| For operating expenses | $ 12,800.00 | $ 13,000.00 | $ 13,200.00 | $ 39,000.00 |
| For equipment | $ 2,100.00 | $ 3,000.00 | $ - 0 | $ 5,100.00 |
| Total disbursements | $ 58,453.20 | $ 58,002.00 | $ 54,722.40 | $ 171,177.60 |
| Excess (deficiency) of cash | $ (7,003.20) | $ (605.20) | $ 6,072.40 | $ (1,536.00) |
| Financing: |
| Borrowings | $ 11,000.00 | $ 4,000.00 | $ - 0 | $ 15,000.00 |
| Repayments | $ - 0 | $ - 0 | $ (2,000.00) | $ (2,000.00) |
| Interest* | $ - 0 | $ - 0 | $ (615.00) | $ (615.00) |
| Total financing | $ 11,000.00 | $ 4,000.00 | $ (2,615.00) | $ 12,385.00 |
| Cash balance, ending | $ 3,996.80 | $ 3,394.80 | $ 3,457.40 | $ 3,457.40 |
| * $11,000 x 1.5% x 3 = $495 |
| $4,000 x 1.5% x 2 = $120 |
| Total interest $615 |
Sales ($52,000 + $56,000 + $60,000)168,000.00$
Cost of Goods sold
Beginning inventory (Given)7,100.00$
Purchases (Part b)125,351.20$
Goods available for sale132,451.20$
Ending inventory ( Part b)9,811.20$ 122,640.00$ *
Gross margin45,360.00$
Selling and administrative expenses:
Commissions (Part d)27,000.00$
Rent (Part d)3,600.00$
Depreciation (Given)1,300.00$
Other expenses (Part d)8,400.00$ 40,300.00$
Net operating income5,060.00$
Interest expense615.00$
Net income4,445.00$
* Alternative calculation for cost of goods sold would be: $168,000 x 73% =$122,640
Sheet1
| Martin & Sons |
| Income Statement |
| For the Quarter Ended September 30, 2014 |
| Sales ($52,000 + $56,000 + $60,000) | | $ 168,000.00 |
| Cost of Goods sold |
| Beginning inventory (Given) | $ 7,100.00 |
| Purchases (Part b) | $ 125,351.20 |
| Goods available for sale | $ 132,451.20 |
| Ending inventory ( Part b) | $ 9,811.20 | $ 122,640.00 | * |
| Gross margin | | $ 45,360.00 |
| Selling and administrative expenses: |
| Commissions (Part d) | $ 27,000.00 |
| Rent (Part d) | $ 3,600.00 |
| Depreciation (Given) | $ 1,300.00 |
| Other expenses (Part d) | $ 8,400.00 | $ 40,300.00 |
| Net operating income | | $ 5,060.00 |
| Interest expense | | $ 615.00 |
| Net income | | $ 4,445.00 |
| * Alternative calculation for cost of goods sold would be: $168,000 x 73% =$122,640 |
Assets
Current Assets
Cash (Part e)3,457.40$
Accounts receivable ($60,000 x 65%)39,000.00$
Inventory (Part b)9,811.20$
Total current assets52,268.60$
Fixed assets - net ($102,550 + $2,100 + $3,000 - $1,300)106,350.00$
Total assets158,618.60$
Liabilities and Stockholders' Equity
Accounts payable (Part b $41,347.20 x 50%)20,673.60$
Bank loan payable13,000.00$
Stockholder's equity:
Capital stock (Given)99,000.00$
Retained earnings*25,945.00$ 124,945.00$
Total liabilities and equity158,618.60$
* Retained earnings, beginning21,500.00$ -$
Add net income4,445.00$
Retained earnings25,945.00$
Martin & Sons
Balance Sheet
As of September 30, 2014
Sheet1
| Martin & Sons |
| Balance Sheet |
| As of September 30, 2014 |
| Assets |
| Current Assets |
| Cash (Part e) | | $ 3,457.40 |
| Accounts receivable ($60,000 x 65%) | | $ 39,000.00 |
| Inventory (Part b) | | $ 9,811.20 |
| Total current assets | | $ 52,268.60 |
| Fixed assets - net ($102,550 + $2,100 + $3,000 - $1,300) | | $ 106,350.00 |
| Total assets | | $ 158,618.60 |
| Liabilities and Stockholders' Equity |
| Accounts payable (Part b $41,347.20 x 50%) | | $ 20,673.60 |
| Bank loan payable | | $ 13,000.00 |
| Stockholder's equity: |
| Capital stock (Given) | $ 99,000.00 |
| Retained earnings* | $ 25,945.00 | $ 124,945.00 |
| Total liabilities and equity | | $ 158,618.60 |
| * Retained earnings, beginning | $ 21,500.00 | $ - 0 |
| Add net income | $ 4,445.00 |
| Retained earnings | $ 25,945.00 |
JulyAugustSeptemberQuarter
Cash Sales18,200.00$ 19,600.00$ 21,000.00$ 58,800.00$
Credit Sales*29,250.00$ 33,800.00$ 36,400.00$ 99,450.00$
Total Collections47,450.00$ 53,400.00$ 57,400.00$ 158,250.00$
*65% of the preceding month's sales
Schedule of Expected Cash Collections
Sheet1
| Schedule of Expected Cash Collections |
| | July | August | September | Quarter |
| Cash Sales | $ 18,200.00 | $ 19,600.00 | $ 21,000.00 | $ 58,800.00 |
| Credit Sales* | $ 29,250.00 | $ 33,800.00 | $ 36,400.00 | $ 99,450.00 |
| Total Collections | $ 47,450.00 | $ 53,400.00 | $ 57,400.00 | $ 158,250.00 |
| *65% of the preceding month's sales |
JulyAugustSeptemberQuarter
Budgeted Cost of Goods Sold
37,960.00$ 40,880.00$ 43,800.00$ 122,640.00$
Add desired ending inventory11,446.40$ 12,264.00$ 9,811.20$ 9,811.20$
Total needs49,406.40$ 53,144.00$ 53,611.20$ 132,451.20$
Less beginning inventory7,100.00$ 11,446.40$ 12,264.00$ 7,100.00$
Required purchases42,306.40$ 41,697.60$ 41,347.20$ 125,351.20$
At September 30: October sales $48,000 x 73% x 28% = $9,811.20
Merchandise Purchases Budget
Sheet1
| Merchandise Purchases Budget |
| | July | August | September | Quarter |
| Budgeted Cost of Goods Sold | $ 37,960.00 | $ 40,880.00 | $ 43,800.00 | $ 122,640.00 |
| Add desired ending inventory | $ 11,446.40 | $ 12,264.00 | $ 9,811.20 | $ 9,811.20 |
| Total needs | $ 49,406.40 | $ 53,144.00 | $ 53,611.20 | $ 132,451.20 |
| Less beginning inventory | $ 7,100.00 | $ 11,446.40 | $ 12,264.00 | $ 7,100.00 |
| Required purchases | $ 42,306.40 | $ 41,697.60 | $ 41,347.20 | $ 125,351.20 |
| At September 30: October sales $48,000 x 73% x 28% = $9,811.20 |
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