Executive Brief
Denisepopow
finalprojectpart1.xlsxInstructions
| Southern New Hampshire University | |
| Final Project II | |
| ACC 207 - Cost Accounting - STUDENT WORKBOOK | |
| MILESTONE ONE (Due in Module Five) | FINAL PROJECT (Due in Module Seven) |
| 1. | 1. |
| Prepare Sales Budget | Prepare Budgeted Income |
| Prepare Schedule of | Statement |
| Expected Cash Collection | Prepare Budgeted Balance |
| From Sales | Sheet |
| 2. | |
| Prepare Merchandise | |
| Purchases Budget | |
| Prepare Schedule of Expected | |
| Cash Disbursements for | |
| Merchandise Purchases | |
| 3. | |
| Prepare Selling and Admin | |
| Budget, Including Expected | |
| Cash Disbursements | |
| 4. | |
| Prepare Cash Budget |
Sales Budget
/xl/drawings/drawing1.xml#'Part%20II%20Sales%20Budget'!A1Admin Budget
/xl/drawings/drawing1.xml#'Part%20II%20Admin%20Budget'!A1Purchasing Budget
/xl/drawings/drawing1.xml#'Part%20II%20Purchasing%20Budget'!A1Financial Statements
/xl/drawings/drawing1.xml#'Part%20II%20Financials'!A1Instructions Milestone 1
/xl/drawings/drawing1.xml#'Milestone%20One%20Instructions'!A1Instructions Final Project
/xl/drawings/drawing1.xml#'Instructions%20Final%20Project%20II'!A1Cash Budget
/xl/drawings/drawing1.xml#'Part%20II%20Cash%20Budget'!A1Milestone One Instructions
| Southern New Hampshire University |
| College of Continuing Education (COCE) |
| ACC 207 - Cost Accounting - STUDENT WORKBOOK |
| INSTRUCTIONS FOR MILESTONE 1 (Due Week 5) |
| IMPORTANT NOTES: |
| Make sure to completely review the Milestone One Final Project II Rubric. |
| Use the data from this milestone and begin work on your final presentation, which is due in Module Seven. |
| ITEMS TO COMPLETE FOR THIS MILESTONE (Blue Tabs): |
| GENERAL |
| You are the accountant tasked with creating the master budget for SRS Educational Supply Company. You have made your budget assumptions (see the red tab labeled Part II Assumptions) and are ready to prepare the following: |
| SALES BUDGET |
| Prepare the sales budget by month and in total. |
| Prepare a schedule of excepted cash collections from sales by month and in total. |
| PURCHASING BUDGET |
| Prepare a merchandise purchases budget by month and in total. |
| Prepare a schedule of expected cash disbursements for merchandise purchases by month and in total. |
| ADMIN BUDGET |
| Prepare a selling and admin budget by month and in total. |
| Add expected cash disbursements for selling and admin by month and in total. |
| CASH BUDGET |
| Prepare a cash budget by month and in total. |
| FINANCIAL INFORMATION FOR BUDGETS - SEE PART II ASSUMPTIONS (RED TAB) |
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/xl/drawings/drawing2.xml#Instructions!A1Part II Assumptions
| MOST LIKELY NUMBERS AND ASSUMPTIONS | ||||
| SALES MANAGER PRIVATE INFORMATION | July | August | September | October |
| Most likely sales | $ 600,000 | $ 910,000 | $ 475,000 | $ 385,000 |
| PURCHASING MANAGER PRIVATE INFORMATION | Part 1 Information | |||
| Most likely cost of merchandise as a % of sales | 45% | |||
| Desired ending inventory as a percentage of next month's cost of sales | 20% | |||
| OPERATION MANAGER PRIVATE INFORMATION | Part 1 Information | |||
| Most likely shipping expenses as a percent of sales | 5.0% | |||
| Most likely other expenses as a percent of sales | 8.0% | |||
| Salaries and wages (per month) | $ 85,000 | |||
| Most likely advertising costs (per month) | $ 50,000 | |||
| Most likely insurance costs (per month) | $ 3,000 | |||
| Depreciation expense (per month) | $ 25,000 | |||
| FINANCE MANAGER PRIVATE INFORMATION | Part 1 Information | |||
| Percent sales collected in month of sale | 30% | |||
| Percent sales collected in month after sale | 70% | |||
| Percent of inventory purchases paid in month of purchase | 50% | |||
| Percent of inventory purchases paid in month after purchase | 50% | |||
| Percent of operating expenses paid in month of purchase | 100% | |||
| Percent of operating expenses paid in month after purchase | 0% | |||
| Desired minimum ending cash balance each month | $ 35,000 | |||
| Borrow in increments of | $ 1,000 | |||
| Monthly interest rate on borrowings (not compounded) | 1% | |||
| Other planned outlays of cash | July | August | September | |
| Capital expenditures | $ 200,000 | $ 90,000 | $ - 0 | |
| Dividends | $ 50,000 | $ - 0 | $ - 0 | |
| SRS Educational Supply Company | ||||
| Balance Sheet | ||||
| Previous Year End | ||||
| Assets | ||||
| Current assets: | ||||
| Cash | $ 40,000 | |||
| Accounts receivable | $ 340,000 | |||
| Inventory | $ 50,000 | |||
| Prepaid insurance | $ 18,000 | |||
| Total current assets | $ 448,000 | |||
| Buildings and equipment (net) | $ 860,000 | |||
| TOTAL ASSETS | $ 1,308,000 | |||
| Liabilities and Equity | ||||
| Liabilites | ||||
| Accounts payable | $ 130,000 | |||
| Notes payable | $ - 0 | |||
| Total liabilities | $ 130,000 | |||
| Stockholder's equity | ||||
| Capital stock | $ 420,000 | |||
| Retained earnings | $ 758,000 | |||
| Total equity | $ 1,178,000 | |||
| TOTAL LIABILITIES AND EQUITY | $ 1,308,000 | |||
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/xl/drawings/drawing3.xml#Instructions!A1Sheet1
Part II Sales Budget
| Sales Budget | ||||
| July | August | September | Quarter | |
| Sales | $ 600,000 | $ 910,000 | $ 475,000 | $ 1,985,000 |
| Schedule of Cash Collections | ||||
| July | August | September | Quarter | |
| June sales (A/R From Beginning Balance Sheet) | 340,000 | 340,000 | ||
| July sales - Collected in Current Month | 180,000 | 180,000 | ||
| July sales - Collected in Following Month | 420,000 | 420,000 | ||
| August sales - Collected in Current Month | 273,000 | 273,000 | ||
| August sales - Collected in Following Month | 637,000 | 637,000 | ||
| September sales - Collected in Current Month | 142,500 | 142,500 | ||
| Total Expected Cash Collections | ||||
| 520000 | 693000 | 779500 | 1992500 | |
| Total Sales for the Quarter | $ 1,985,000 | |||
| A/R at the end of the Quarter (September Sales Still not Collected) | $ 332,500 | |||
View Assumptions
/xl/drawings/drawing4.xml#'Part%20II%20Assumptions'!A1HOME
/xl/drawings/drawing4.xml#Instructions!A1Part II Purchasing Budget
| HOME | ||||
| Inventory Purchase Budget | ||||
| July | August | September | October | |
| Sales | $ 600,000 | $ 910,000 | $ 475,000 | $ 385,000 |
| Cost of Merchandise as % of Sales | 45% | 45% | 45% | 45% |
| Budgeted Cost of Merchandise Sold | $ 270,000 | $ 409,500 | $ 213,750 | $ 173,250 |
| Following Month's COGS | $ 409,500 | $ 213,750 | $ 173,250 | |
| Desired Ending Inventory % | 20% | 20% | 20% | |
| Desired Ending Inventory Dollars | 81,900 | 427,500 | 34,650 | |
| Budgeted Cost of Merchandise Sold | 270,000 | 409,500 | 213,750 | |
| Plus Desired Ending Inventory | 81,900 | 427,500 | 34,650 | |
| Total Inventory Needs | 351,900 | 837,000 | 248,400 | |
| Less Beginning Inventory | (50,000) | (81,900) | (42,750) | |
| Required Purchases | $ 301,900 | $ 370,350 | $ 205,650 | |
| Schedule of Expected Cash Disbursements - Purchases | ||||
| July | August | September | Quarter | |
| June Purchases (A/P From Balance Sheet) | $ 130,000 | $ 130,000 | ||
| July Purchases | $ 150,950 | $ 150,950 | $ 301,900 | |
| August Purchases | $ 185,175 | $ 185,175 | $ 370,350 | |
| September Purchases | $ 102,825 | $ 102,825 | ||
| Total Disbursements | $ 280,950 | $ 336,125 | $ 288,000 | $ 905,075 |
| Cost of Merchandise Sold for the Quarter | $ 893,250 | |||
| Ending Inventory at the end of the Quarter | $ 34,650 | |||
| Ending A/P at the end of the Quarter | $ 102,825 | |||
View Assumptions
/xl/drawings/drawing5.xml#'Part%20II%20Assumptions'!A1HOME
/xl/drawings/drawing5.xml#Instructions!A1Part II Admin Budget
| Selling and Administrative Budget | ||||
| July | August | September | Quarter | |
| Sales | $ 600,000 | $ 910,000 | $ 475,000 | $ 385,000 |
| Shipping as a Percentage of Sales | 5% | 5% | 5% | 5% |
| Other Expenses as a Percentage of Sales | 8% | 8% | 8% | 8% |
| Variable Expenses: | ||||
| Shipping | 30,000 | 45,500 | 23,750 | 99,250 |
| Other Expenses | 48,000 | 72,800 | 38,000 | 158,800 |
| Total Variable Expenses | 78,000 | 118,300 | 61,750 | 258,050 |
| Fixed Expenses: | ||||
| Salaries and Wages | 85,000 | 85,000 | 85,000 | 255,000 |
| Advertising | 50,000 | 50,000 | 50,000 | 150,000 |
| Prepaid Insurance | 3,000 | 3,000 | 3,000 | 9,000 |
| Depreciation | 25,000 | 25,000 | 25,000 | 75,000 |
| Total Fixed Expesnes | 163,000 | 163,000 | 163,000 | 489,000 |
| Total Selling and Admin Expenses | 241,000 | 281,300 | 224,750 | 747,050 |
| Less Noncash Items (Depreciation and Prepaid Ins) | (28,000) | (28,000) | (28,000) | (84,000) |
| Total Cash Disbursements | 213,000 | 253,300 | 196,750 | 663,050 |
| Prepaid Insurance That Is Expensed During the Quarter | $ 9,000 | |||
| Depreciation Expense Recognized During the Quarter | $ 75,000 | |||
View Assumptions
/xl/drawings/drawing6.xml#'Part%20II%20Assumptions'!A1HOME
/xl/drawings/drawing6.xml#Instructions!A1Part II Cash Budget
| Cash Budget | ||||
| July | August | September | Quarter | |
| Cash Balance: Beginning | 40,000 | 35,050 | 35,435 | 40,000 |
| Add Cash Collections (From Sales Budget) | 520,000 | 693,000 | 779,500 | 1,992,500 |
| Total cash Available | 560,000 | 728,050 | 814,935 | 2,032,500 |
| Less Cash Disbursements | ||||
| For Inventory (From Purchasing Budget) | 280,950 | 336,125 | 288,000 | 905,075 |
| For Operating Expenses (From Selling and Admin Budget) | 213,000 | 253,300 | 196,750 | 663,050 |
| For Equipment | 200,000 | 90,000 | - | 290,000 |
| For Cash Dividends | 50,000 | - | - | 50,000 |
| For Interest (From Previous Month's Borrowing) | $ 2,190 | $ 2,080 | 4,270 | |
| Total Cash Disbursements | 743,950 | 681,615 | 486,830 | 1,912,395 |
| Excess (Deficiency) of Cash | (183,950) | 46,435 | 328,105 | 120,105 |
| Financing | ||||
| Borrowing | 219,000 | 219,000 | ||
| Repayment | 11,000 | 208,000 | 219,000 | |
| Total Financing | 219,000 | 11,000 | 208,000 | |
| Cash Balance: Ending | 35,050 | 35,435 | 120,105 | 120,105 |
| Outstanding Loan Balance | 0 | |||
| Interest on Borrowing (Due the Following Quarter) | 0 | |||
| SRS Educational Supplies Company | ||||
| Budgeted Income Statement | ||||
| For the Quarter Ended September 30 | ||||
| Sales | ERROR:#REF! | From sales budget | ||
| Cost of goods Sold | ERROR:#REF! | |||
| Gross Margin | ERROR:#REF! | |||
| Selling and administrative expenses | ||||
| Shipping | ERROR:#REF! | |||
| Other | ERROR:#REF! | From operating budget | ||
| Salaries and wages | ERROR:#REF! | |||
| Advertising | ERROR:#REF! | |||
| Prepaid insurance | ERROR:#REF! | |||
| Depreciation | ERROR:#REF! | ERROR:#REF! | ||
| Net operating incomes | ERROR:#REF! | |||
| Less interest expense | ERROR:#REF! | From cash budget | ||
| Net income | ERROR:#REF! | |||
| SRS Educational Supply Company | ||||
| Balance Sheet | ||||
| September 30, | ||||
| Assets | ||||
| Current assets: | ||||
| Cash | $120,105 | From cash budget | ||
| Accounts receivable | ERROR:#REF! | From sales budget - collections | ||
| Inventory | ERROR:#REF! | From purchase budget | ||
| Prepaid insurance | ERROR:#REF! | |||
| Total current assets | ERROR:#REF! | |||
| Buildings and equipment (net) | ERROR:#REF! | Beg equip + purch - depr | ||
| Total assets | ERROR:#REF! | |||
| Liabilities and Equity | ||||
| Accounts payable | ERROR:#REF! | From purchase budget - cash disb | ||
| Notes Payable | 438,000 | ERROR:#REF! | From cash budget | |
| Stockholder's equity | ||||
| Capital stock | 420,000 | From beg balance sheet | ||
| Retained earnings | ERROR:#REF! | Beg RE + NI - dividends | ||
| Total liability and equity | ERROR:#REF! | |||
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/xl/drawings/drawing7.xml#Instructions!A1View Assumptions
/xl/drawings/drawing7.xml#'Part%20II%20Assumptions'!A1Instructions Final Project II
| Southern New Hampshire University |
| Final Project II |
| ACC 207 - Cost Accounting - STUDENT WORKBOOK |
| INSTRUCTIONS FOR FINAL PROJECT II (Due Module Seven) |
| IMPORTANT NOTES: |
| Make sure to completely review the Final Project II Rubric. |
| Use the data from Milestone One and begin work on your final presentation, which is due in Module Seven. |
| ITEMS TO COMPLETE FOR FINAL PROJECT II (Purple Tabs): |
| GENERAL |
| Use data from Milestone One and the Part II Assumptions tab (the red tab) for your statement preparation. |
| BUDGETED FINANCIAL STATEMENTS |
| Prepare a budgeted income statement. |
| Prepare a budgeted balance sheet. |
| See Rubric for Presentation Instructions |
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/xl/drawings/drawing8.xml#Instructions!A1Part II Financials
| SRS Educational Supplies Company |
| Budgeted Income Statement |
| For the Quarter Ended September 30th |
| Sales |
| Cost of Goods Sold |
| Gross Margin |
| Selling and Administrative Expenses |
| Shipping |
| Other |
| Salaries and Wages |
| Advertising |
| Prepaid Insurance |
| Depreciation |
| Net Operating Incomes |
| Less Interest Expense |
| Net Income |
| SRS Educational Supply Company |
| Balance Sheet |
| September 30th |
| Assets |
| Current Assets: |
| Cash |
| Accounts receivable |
| Inventory |
| Prepaid Insurance |
| Total Current Assets |
| Buildings and Equipment (Net) |
| Total Assets |
| Liabilities and Equity |
| Accounts Payable |
| Notes Payable |
| Stockholder's Equity |
| Capital Stock |
| Retained Earnings |
| Total Liability and Equity |
View Assumptions
/xl/drawings/drawing9.xml#'Part%20II%20Assumptions'!A1Home
/xl/drawings/drawing9.xml#Instructions!A1
