# 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

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