Part 4. Quarter 792,000 Cash Budget For the Quarter Ended March 31 January February March Beginning Cash Balance 51,200

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: Part 4 Quarter 792 000 Cash Budget For The Quarter Ended March 31 January February March Beginning Cash Balance 51 200 1 (76.48 KiB) Viewed 32 times

: Part 4 Quarter 792 000 Cash Budget For The Quarter Ended March 31 January February March Beginning Cash Balance 51 200 2 (59.21 KiB) Viewed 32 times

: Part 4 Quarter 792 000 Cash Budget For The Quarter Ended March 31 January February March Beginning Cash Balance 51 200 3 (63.16 KiB) Viewed 32 times

Part 4. Quarter 792,000 Cash Budget For the Quarter Ended March 31 January February March Beginning Cash Balance 51,200 Add Cash Receipts 227,000 271,700 293,300 - Cash Available 278,200 Less Payments 0 For Inventory Purchases 155,819 184,929 181,987 1 For Operating Expenses 77,400 85,050 86,400 12 For Land Purchase 8,000 4,000 13 For Dividends 50,000 0 0 14 Total Budgeted Payments 283,219 277,979 272,387 15 Surplus/(Shortage) (5,019) 16 Financing Activity 17 Borrowing 18 Interest Expense Payment 19 Principal Repayment 20 Ending Cash Balance 21 22 522,735 248,850 12,000 50,000 833,585
Powell and Sons, a home furnishings store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of the master budget for the first quarter: 1.) As of December 31 (the end of the prior quarter), the company's general ledger showed the following account balances: Credits Debits $51,200 61,800 82,600 Cash Accounts Receivable Inventory Property and Equipment (net) Accounts Payable Capital Stock Retained Earnings 80,600 $101,000 45,300 129,900 $276,200 $276,200 2) Actual sales for December and budgeted sales for the next four months are as follows: December (actual) $206,000 January $236,000 February $287.000 March $296,000 April $221,000 a. Sales are 70% for cash and 30% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales. b. The company's gross profit margin is 35% of sales. c. Monthly expenses are budgeted as follows: salaries and wages, $30,000 per month: advertising, $12,000 per month; shipping, 5% of sales; other expense, 10% of sales. Depreciation for the quarter will be $9,000.
a. Sales are 70% for cash and 30% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales. b. The company's gross profit margin is 35% of sales. C. Monthly expenses are budgeted as follows: salaries and wages, $30,000 per month: advertising, $12,000 per month; shipping, 5% of sales; other expense, 10% of sales. Depreciation for the quarter will be $9,000. d. At the end of each month, inventory is to be on hand equal to 60% of the following month's sales needs, stated at cost. e. 30% of a month's inventory purchases are paid for in the month of purchase; the remainder is paid for in the following month. f. During February, the company will purchase land for $8,000 cash. During March, and will be purchased for cash at a cost of $4,000. 8. During January, the company will declare and pay $50,000 in cash dividends. h. The company must maintain a minimum cash balance of $5,000. An open line of credit is available at a local bank for any borrowing that may be needed during the quarter. All borrowing and repayments are made at the beginning of a month in increments of $1,000. The company pays interest on the prior month's line of credit ending balance at a monthly interest rate of the previous month's outstanding balance. Interest is paid regardless whether we are borrowing more or repaying principal. The annual interest rate is 12%. Ceo thoinetti