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Master Budget

Schedule of Expected Sales
March April May June July 2nd Quarter
Totals Sales 60,000 70,000 85,000 90,000 50,000 245,000
Cash Sales 12,000 14,000 17,000 18,000 10,000
Credit Sales 48,000 56,000 68,000 72,000 40,000

Schedule of Expected Cash Collection
April May June July 2nd Quarter
From Cash Sales 14,000 17,000 18,000
From Credit Sales 48,000 58,000 68,000
Total Cash Collected 62,000 73,000 86,000 221,000

Inventory Purchases Budgets 2nd Quarter
March April May June July
Budgeted Cost of Goods Sold 42,000 51,000 54,000 30,000 147,000
PLUS: Ending Inventory 15,300 16,200 9,000
LESS: Beginning Inventory 12,600 15,300 16,200

Required Purchases 44,700 51,900 46,800 143,400

Expected Cash Disbursements for Purchases

April May June July 2nd Quarter
March 18,300
April 22,350 22,350
May 25,950 25,950
June 23,400 23,400
Total Disbursements 40,650 48,300 49,350

Problem 9-19, having trouble with number 5 and 6.

5. Prepare an income statement for the quarter ending June 30 as shown in schedule 9 in the chapter.
6. Prepare a balance sheet as of June 30.

Please see attached.

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INCOME STATEMENT FOR THE QUARTER ENDED 30TH JUNE

IN$
SALES 245,000.00
LESS COST OF GOODS SOLD (147,000.00)
GROSS PROFIT 98,000.00
SALARY AND WAGES (22,500.00)
ADVERTISING (18,000.00)
SHIPPING (14,700.00)
OTHER EXPENSES (9,800.00)
PROFIT BEFORE DEPRECIAITON ...

Solution Summary

This solution contains step by step calculations for the preparation of a master budget, Income statement, balance sheet, and a cash budget.

$2.19