Fixed Assets
Equipment $480,000.00
Accumulated depreciation ($90,000.00)
Non Fixed Assets
Cash $50,000
Accounts Receivable $175,000.00
Inventory $126,000.00
Total Assets $741,000.00
Long Term
Long-Term notes payable $200,000.00
Short Term
Accounts payable $156,000.00
Short-term notes payable $12,000.00
Capital
Common stock $235,000.00
Retained Earnings $138,000.00
Total Liabilities $741,000.00
Sales Budget January February March Quarter
Sales in units 10,500 11,025 11,576 33,101
S.P. / Unit in Dollars 25.00$ 25.00$ 25.00$ 25.00$
Budgeted Sales 262,500.00$ 275,625.00$ 289,400.00$ 827,525.00$
Purchase Budget January February March Quarter
Budgeted sales in units 10,500 11,025 11,576 33,101,
Add: Ending inventory
reqd.(80% next month sales) 8,820 9,261 9,724 9,724
Total Units needed 19,320 20,286 21,300 42,825
Less: Beginning Inventory -8,400 -8,820 -9,260 -8,400
Budgeted Purches in units 10,920 11,466 12,040 34,425
Purchase Price (Per unit) 15.00$ 15.00$ 15.00$ 15.00$
Budgeted Purchases 163,800.00$ 171,990.00$ 180,600.00$ 516,375.00$
ABC Company Balance Sheet
As of 31st December 2017
Liabilities
Assets
Sales Budget
Purchases Budget
COGS Budget January February March Quarter
Budgeted Sales in units 10,500 11,025 11,576 33,101
COGS at $15/ unit 157,500.00$ 165,375.00$ 173,644.00$ 496,519.00$
Cost of Ma 31, ending
inventory 145,860
Selling Expense Budget January February March Quarter
Budgeted Sales 262,500.00$ 275,625.00$ 289,406.00$ 827,531.00$
Sales Rep. Comm at 12.5% of
Sales 32,813.00$ 34,453.00$ 36,176.00$ 103,441.00$
Sales Manager Salary 3,500.00$ 4,000.00$ 4,000.00$ 11,500.00$
Sales Expense Budgeted 36,313.00$ 38,453.00$ 40,176.00$ 114,941.00$
General & administrative
expense budget January February March Quarter
Administrative salaries 8,000.00$ 8,000.00$ 8,000.00$ 24,000.00$
Interest exp.(0.9%*$200,000) 1,800.00$ 1,800.00$ 1,800.00$ 5,400.00$
Total cash G&A exp. 9,800.00$ 9,800.00$ 9,800.00$ 29,400.00$
Depreciation 5,000.00$ 5,000.00$ 5,000.00$ 15,000.00$
Total G&A exp. 148,000.00$ 148,000.00$ 148,000.00$ 444,000.00$
Without interest exp.(for I/S) 39,000.00$
Expected cash receipts from
customers January February March Quarter
Budgeted sales $ 262,500.00$ 275,625.00$ 289,406.00$ 827,531.00$
Cash sales (30%) 78,750.00$ 82,688.00$ 86,822.00$ 248,259.00$
Credit sales of:
17-Dec 175,000.00$ 175,000.00$
18-Jan 183,750.00$ 183,750.00$
18-Feb 192,938.00$ 192,938.00$
Total sales collections expected 253,750.00$ 266,438.00$ 279,759.00$ 799,947.00$
Exp.March 31balance of
accounts receivable 202,584.00$
Expected cash receipts from customers
Cost of goods sold budget
Selling Expense Budget
General and administrative expense budget
Budgeted purchases($) 163,800.00$ 171,990.00$ 180,590.00$ 516,380.00$
Payment of purchases of:
17-Dec 156,000.00$ 156,000.00$
18-Jan 163,800.00$ 163,800.00$
18-Feb 171,990.00$ 171,990.00$
Total payment from purchases 156,000.00$ 163,800.00$ 171,990.00$ 491,790.00$
Exp. March 31 balance of
accounts payable 180,590.00$
Cash Budget January February March Quarter
Beginning balance 50,000.00$ 89,518.00$ 50,000.00$ 50,000.00$
Total sales collections exp. 253,750.00$ 266,438.00$ 279,759.00$ 799,947.00$
Total cash available 303,750.00$ 355,955.00$ 329,759.00$ 849,947.00$
Less: Disbursements:
Total pmt. For purchases 156,000.00$ 163,800.00$ 171,990.00$ 491,790.00$
Total sell.exp. Budgeted 36,313.00$ 38,453.00$ 40,176.00$ 114,941.00$
Total cash G&A exp. 9,800.00$ 9,800.00$ 9,800.00$ 29,400.00$
Dividends 100,000.00$ 100,000.00$
Equipment purchase 55,000.00$ 55,000.00$
Total disbursements 202,113.00$ 312,053.00$ 276,966.00$ 791,131.00$
Surplus/(Deficit) 101,638.00$ 43,902.00$ 52,793.00$ 58,815.00$
Add: Borrowings 6,098.00$ 6,098.00$
Add :Repayments 12,000.00$ 2,732.00$ 14,732.00$
Less: Interest 120.00$ 61.00$ 181.00$
Ending Balance Budgeted
income statement 89,518.00$ 50,000.00$ 50,000.00$ 50,000.00$
Sales Revenue 827,531.00$
Less:COGS 496,519.00$
Gross profit 331,012.00$
Less: operating expenes
Selling expenses 114,941.00$
G&A exp. 39,000.00$ 153,941.00$
Operating Income 177,071.00$
Less: Interest Exp.
Int. on Long-term notes 5,400.00$
Int. on short-term notes 181.00$ 5,581.00$
Income before tax 171,490.00$
Cash Budget
Budgeted Income Statement
Less: Income Tax at
35%($171,490*35%) 60,021.00$
Net Income 111,468.00$
Beginning balance 138,000.00$
Add: Net income for the qer. 111,468.00$
Less: Cash dividends 149,468.00$
Ending balance Budgeted balance sheet
149,468.00$
Assets :
Current assets
Cash 50,000.00$
Account Receivable 202,584.00$
Inventory 145,860.00$
Total Current aasets 398,444.00$
Fixed assets :
Equipment (480000+55000) 535,000.00$
Less : Accumulated
Depreciation($90.000+15000) 105,000.00$ 430,000.00$
Total Assets 828,444.00$
Liabilities& Shareholders
Equity
Current Liabilities
Account payable 108,590.00$
Income tax payable 60,021.00$
Short-term Notes Payable 3,366.00$
Total Current Liabilities 243,977.00$
Long-term Liabilities
Long-term Note payable 200,000.00$
Total Liabilities 443,977.00$
Shareholders' Equity
Common Stock 235,000.00$
Retained Eanings 149,468.00$
Total Shareholders' Equity 384,468.00$
Liabilities& Shareholders'
Equity 828,445.00$
Budgeted statement of retained earnings
April
12,155
25.00$
303,875.00$
