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    Master Budget

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    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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    https://brainmass.com/business/budgets/master-budget-41923

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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

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