managerial accounting budget project

budget_project_student_version.xlsx

Given Assumptions

									Fall 2015
Actual and Budgeted Sales in Units
Actual			Budgeted
January	February	March	April	May	June	July	August	September
20,000	26,000	40,000	65,000	100,000	50,000	30,000	28,000	25,000
$10	Selling Price Per Unit
20%	Collected in the month of sale
70%	Collected in the following month
10%	Collected in the 2nd following month
$4	Merchandise Cost Per Unit
40%	desired ending inventory (% of following month's sales)
50%	suppliers paid in the month of purchase
50%	suppliers paid in the following month
Monthly Operating Expenses
Variable
4%	Sales Commission as % of Sales
Fixed
$200,000	Advertising
$18,000	Rent
$106,000	Salaries
$7,000	Utilities
$3,000	Insurance
$14,000	Depreciation
Account Balances as of March 31
Assets
$74,000	Cash
$346,000	Accounts Receivable
$104,000	Inventory
$21,000	Prepaid Insurance
$950,000	Property and Equipment
$1,495,000	Total Assets
Liabilities and Stockholders' Equity
$100,000	Accounts Payable
$15,000	Dividends Payable
$800,000	Common Stock
$580,000	Retained Earnings
$1,495,000	Total Liabilities and Stockholders' Equity
Cash Purchases
Equipment
$16,000	May
$40,000	June
Cash Management Policies
$50,000	Minimum Cash Balance
1%	Interest Per Month

Sales Budget
	April	May	June	Quarter
Budgeted unit sales	?	?	?	?
Selling price per unit	?	?	?	?
Total sales	?	?	?	?
Schedule of Expected Cash Collections
	April	May	June	Quarter
February sales	?	?	?	?
March sales	?	?	?	?
April sales	?	?	?	?
May sales	?	?	?	?
June sales	?	?	?	?
Total cash collections	?	?	?	?
Merchandise Purchases Budget
	April	May	June	Quarter
Budgeted unit sales	?	?	?	?
Add desired ending merchandise inventory	?	?	?	?
Total needs	?	?	?	?
Less beginning merchandise inventory	?	?	?	?
Required purchases	?	?	?	?
Merchandise cost per unit	?	?	?	?
Cost of purchases	?	?	?	?
Budgeted Cash disbursements for Merchandise Purchases
	April	May	June	Quarter
Accounts payable	?	?	?	?
April purchases	?	?	?	?
May purchases	?	?	?	?
June purchases	?	?	?	?
Total cash payments	?	?	?	?

Cash Budget for the Three Months Ending June 30
	April	May	June	Quarter
Beginning cash balance	?	?	?	?
Add collections from customers	?	?	?	?
Total cash available	?	?	?	?
Less cash disbursements:
Merchandise purchases	?	?	?	?
Advertising	?	?	?	?
Rent	?	?	?	?
Salaries	?	?	?	?
Commissions	?	?	?	?
Utilities	?	?	?	?
Equipment purchases	?	?	?	?
Dividends paid	?	?	?	?
Total cash disbursements	?	?	?	?
Excess (deficiency) of cash available over disbursements	?	?	?	?
Financing:
Borrowings	?	?	?	?
Repayments	?	?	?	?
Interest	?	?	?	?
Total financing	?	?	?	?
Ending cash balance	?	?	?	?

Budgeted Income Statement for the Three Months Ended June 30
Sales		?
Variable expenses:
Cost of goods sold	?
Commissions	?	?
Contribution margin		?
Fixed expenses:
Advertising	?
Rent	?
Salaries	?
Utilities	?
Insurance	?
Depreciation	?	?
Net operating income		?
Interest expense		?
Net income		?

	Budgeted Balance Sheet June 30
	Assets
	Cash	?
	Accounts receivable	?
	Inventory	?
	Prepaid insurance	?
	Property and equipment, net	?
	Total assets	?
	Liabilities and Stockholders’ Equity
	Accounts payable, purchases	?
	Dividends payable	?
	Common stock	?
	Retained earnings	?
	Total liabilities and stockholders’ equity	?