Barrowman Company prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter
ProTutor11
template.docTEMPLATES FOR BARROWMAN BUDGET
1. Schedule of expected cash collections:
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January |
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February |
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March |
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Quarter |
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Cash sales |
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Credit sales |
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Total cash collections |
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2. a. Inventory purchases budget:
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January |
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February |
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March |
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Quarter |
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Budgeted cost of goods sold |
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Add desired ending inventory |
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Total needs |
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Less beginning inventory |
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Required purchases |
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b. Schedule of cash disbursements for purchases:
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January |
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February |
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March |
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Quarter |
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December purchases |
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January purchases |
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February purchases |
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March purchases |
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Total cash disbursements for purchases |
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3. Schedule of cash disbursements for operating expenses:
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January |
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February |
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March |
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Quarter |
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Salaries and wages |
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Advertising |
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Shipping |
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Other expenses |
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Total cash disbursements for operating expenses |
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4. Cash budget:
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January |
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February |
March |
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Quarter |
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Cash balance, beginning |
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Add cash collections |
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Total cash available |
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Less disbursements: |
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Inventory purchases |
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Operating expenses |
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Equipment purchases |
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Cash dividends |
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Total disbursements |
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Excess (deficiency) of cash |
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Financing: |
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Borrowings |
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Repayments |
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Interest |
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Total financing |
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Cash balance, ending |
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5. Income statement:
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BARROWMAN COMPANY |
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Budgeted Income Statement |
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For the Quarter Ended March 31
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Sales |
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Less cost of goods sold: |
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Beginning inventory |
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Add purchases |
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Goods available for sale |
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Ending inventory |
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Gross margin |
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Less operating expenses: |
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Salaries and wages |
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Advertising |
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Shipping |
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Depreciation |
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Other expenses |
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Net operating income |
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Less interest expense |
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Net income |
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6. Balance sheet:
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BARROWMAN COMPANY |
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Budgeted Balance Sheet |
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March 31 |
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Assets |
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Current assets: |
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Cash |
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Accounts receivable |
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Inventory |
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Total current assets |
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Buildings and equipment, net |
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Total assets |
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Liabilities and Equity |
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Current liabilities: |
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Accounts payable |
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Stockholders’ equity: |
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Capital stock |
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Retained earnings* |
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Total liabilities and equity |
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*Retained earnings, beginning |
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Add net income |
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Total |
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Deduct cash dividends |
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Retained earnings, ending |
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