7-B1 $ refers to New Zealand dollars.
1.
January February March
Schedule a: Sales Budget $62000 $70000 $38000
Total sales (100% on credit)
Schedule b: Cash Collections
Current month's sales 37200 42000 22800 7000
Previous month's sales 7500 18600 21000 3800
Second previous month's sales 2500 2500 6200 11400
Total collections 47200 63100 50000 22200
January February March
Schedule c: Purchases Budget
Desired ending inventory 6000 6000 6000
Cost of goods sold 31000 35000 19000
Total needed 37000 41000 25000
Beginning inventory 35050 8050 6000
Purchases (-2050) 32950 25000
Schedule d: Disbursements
for Purchases
100% of previous month's purchases 35550 0 22100
March 31 accounts payable 25000
Exhibit I
VICTORIA KITE
Budgeted Statement of Cash Receipts and Disbursements
For the Three Months Ending March 31, 2005
January February March
Cash balance, beginning 5000 5100 27467
Minimum cash balance desired 5000 5000 5000
(a) Available cash balance 0 100 22467
Cash receipts and disbursements:
Collections from customers 47200 63100 50000
(Schedule b)
Payments for merchandise 35550 0 22100
(Schedule c)
Rent 8050 250 250
Wages and salaries 15000 15000 15000
Miscellaneous expenses 2500 2500 2500
Dividends 1500 0 0
Purchase of fixtures 0 0 3000
(b) Net cash receipts & disbursements (-15400) 45450 7150
Excess (deficiency) of cash before (-15400) 45450 29617
financing (a + b)
Financing:
Borrowing, at beginning of period 15500 0 0
Repayment, at end of period 0 15500 0
Interest, 10% per annum 0 2583 0
(c) Total cash increase (decrease) 15500 (-18083) 0
from financing
(d) Cash balance, end (beginning 5100 27467 29617
balance + c + b)
Exhibit II
VICTORIA KITE
Budgeted Income Statement
For the Three Months Ending March 31, 2005
Sales (Schedule a) 170000
Cost of goods sold (Schedule c) 85000
Gross margin 85000
Operating expenses:
Rent 8550
Wages and salaries 45000
Depreciation. 750
Insurance 375
Miscellaneous 7500
Net income from operations 6825
Interest expense 2583
Net income 4242
Exhibit III
VICTORIA KITE
Budgeted Balance Sheet
March 31, 2005
Assets
Current assets:
Cash (Exhibit I)
Accounts receivable
Merchandise inventory (Schedule c)
Unexpired insurance
Fixed assets, net: $12,500 + $3,000 - $750
Total assets
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable (Schedule d)
Rent payable.
Dividends payable
Stockholders' equity
Total liabilities and stockholders' equity
I have done most of it I just need help the budgeted balance sheet
Just what are we to do with that? If y ou are trying to "cut and paste" it won't work here. You need to type everything out.
Sra