Managerial Acct 505 Project a

1349 words 6 pages
PROJECT A - Case 9-30 Accounting 505
Student Name:

SALES BUDGET: Budgeted unit sales Selling price per unit Total Sales April 65,000 10 650,000 May 100,000 10 1,000,000 June 50,000 10 500,000

SCHEDULE OF EXPECTED CASH COLLECTIONS: February sales March sales April sales May sales June sales Total Cash Collections 70%, 10% 20%,70%,10% 20%,70% 20% 10% April 26,000 280,000 130,000 May June

40,000 455,000 200,000 695,000 65,000 700,000 100,000 865,000

436,000

MERCHANDISE PURCHASES BUDGET: Budgeted unit sales Add desired ending inventory (40% of next months sales) Total needs Less beginning inventory Required purchases Cost of purchases @ $4 per unit April 65,000 40,000 105,000 26,000 79,000 316,000 May 100,000 20,000 120,000
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This is the ending cash balance at the end of June from the above Cash Budget schedule.

Ending inventory of 12000 x $4 Prepaid insurance - insurance expense for the quarter (21,000 - 9000) 950,000 of property and equipment, net at the end of March 31. Add 12000 for desired beginning inventory from purchasing s

50% of $168000 of June purchases Dividends for the quarter Per data given.

Given. From above budgeted income statement

The collections are based on a schedule of - 20% in the current month, 70% in the next month and 10% in the third month

Sales figure for February is from data given of 26,000 actual units sold X $10 per unit = $260,000. Sales of $ 26,000 collected in April (10%) The 40000 actual units sold (per data given) x $10 per unit = $400,000. Per schedule given, $280,000 ($400,000x70%) is collected in April and $40,000 ($400,000x10%) in May In April we will collect 20% of 650000 sales from April, in May 70% of 650000 sales from April, in June 10% of sales from April as per the schedule. In May it will be 20% of 1,000,000, in June 70% of May sales of 1,000,000 as per the schedule. In June it will be 20% of 500,000 as per the schedule.

Per data given. In June the 12,000 is from the 30,000 budgeted sale units for July (30000x.40). In April, beginning invertory is $104,000 divided by $4 per earrings is 26,000. For May and June, ending inventory is beginning inventory from the previous month.

One-half

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