Victoria Kite Company sells kits on the web wants a master budget for
The next three months beginning January 1, 2008...
1) It desires an ending minimum cash balance of $5,000 each month.
2) Sales forecasted at an average wholesale selling price of $8 per kite.
3) On January 1, purchases will cease until inventory reaches $6,000, after which time purchases will equal sales. Merchandise costs average $4 per kite.
4) Purchases during any given month are paid in full during the following month.
5) All sales are on credit, payable within 30 days, but experience has shown that:
60% of current sales are collected in the current month,
30% in the next month, and
10% in the month thereafter. Bad debts are negligible.
6) Monthly operating expenses are as follows:
Wages and salaries $15,000
Insurance expired 125
Rent 250/month + 10% of quarterly sales over 10,000
7) Cash dividends of $1,500 are to be paid quarterly, beginning January 15, and are declared on the fifteenth of the previous month.
8) All operating expenses are paid as incurred, except insurance, depreciation, and rent.
9) Rent of $250 is paid at the beginning of each month, and the additional 10% of sales is paid quarterly on the tenth of the month following the end of the quarter.
The next settlement is due January 10.
10) The company plans to buy some new fixtures for $3,000 cash in March.
11) Money can be borrowed and repaid in multiples of $500 at an interest rate of 10% per annum.
Management wants to minimize borrowing and repay rapidly. Interest is computed and paid when the principal is repaid.
11A) Assume that borrowing occurs at the beginning, and repayments at the end of the month s in questions.
12) Assets as of December 31, 2007
Accounts receivable 12,500
Inventory * 39,050
Unexpired insurance 1,500
Fixed assets, net 12,500
13) Liabilities as of December 31, 2007
Accounts payable (merchandise) $35,550
Dividends payable 1,500
Rent payable 7,800
14) November 30 inventory balance = $16,000
15) Recent and forecasted sales
(1) Prepare a master budget including a...
Budgeted income statement for the months January through March 2005
Budgeted balance sheet for the months January through March 2005
Budgeted statement of cash receipts and disbursements for the months January through March 2005
Supporting schedules for the months January through March 2005
I am responsible for the schedules/ here is a templates for the schedules needed!
Schedule a: Sales Budget- January February March
Total sales (100% on credit)
Schedule b: Cash Collections
60% of current month's sales
30% of previous month's sales
10% of second previous month's sales
Schedule c: Purchases Budget
December January February March
Desired ending inventory
Cost of goods sold
Schedule d: Disbursements for Purchases
100% of previous month's purchases
March 31 accounts payable
If someone can please help me to fill in the numbers to the schedules I would be so grateful!© BrainMass Inc. brainmass.com October 9, 2019, 11:51 pm ad1c9bdddf
The solution explains how to prepare various components of a master budget