Below is tables each one needs to be filled out (6 tables, pro forma income stat
ID: 2570778 • Letter: B
Question
Below is tables each one needs to be filled out (6 tables, pro forma income statement and blance sheet)
BUNS BAKERY- Cookies only Please read these instructions before beginning your work. You may work alone or with a partner. If you work with a partner, turn in one solution with both names on it. Prepare a master budget for cookies only Use the balance sheet in the Excel file. DO NOT use the balance sheet in the IMA case. TABLE 1- PREPARE THE SALES BUDGET FOR YEAR 2 One dozen one unit for sales. Your starting point for Year 2 cookie sales is Q4 of Year 1. The unit volume for Q4 of Year 1 is 65,000 dozen cookies. Plan the unit volume for Year 2 as follows: Q1 unit volume is 20% lower than Q4 of Year 1, Q1 unit volume is 65,000 x 80% or 52,000 Q2 unit volume is 5% more than Q1 of Year 2, Q2 unit volume is 52,000 x 1.05 or 54,600 Q3 unit volume is 5% more than Q2 of Year 2, Q3 unit volume is 54,600 x 1.05 or 57,330 Q4 unit volume is 20% more than Q3 of Year 2, Q4 unit volume is 57,330 x 1.20 or 68,796 Q1 unit volume for Year 3 grows based on Q3 volume from Year 2. it is 57,330 x 1.05(Q3 growth) x 1.05 (Q4 growth) or 63,206 The selling price per unit (dozen) is $5.25 for Year 2. Assume that the selling price does not change for Year 3.
Explanation / Answer
Answer a Sales Budget Year 2 Q1 Q2 Q3 Q4 Total Budgeted Sales in Dozens 52,000 54,600 57,330 68,796 232,726 Sp Per dozen 5.25 5.25 5.25 5.25 5.25 Total Sales Revenues for Cookies 273,000.00 286,650.00 300,982.50 361,179.00 1,221,811.50 Cash Sales - 10% 27,300 28,665 30,098 36,118 122,181 Credit Sales - 90% 245,700 257,985 270,884 325,061 1,099,630 Answer b Schedule of Expected Cash Collections from Sales Year 2 Q1 Q2 Q3 Q4 Total Beginning Accounts Receivable 252,404 214,159 186,050 168,052 252,404 Collection from Year 1 Credit Sales Collected from Q3 Year 1 Sales 57,891 - - - 57,891 Collected from Q4 Year 1 Sales 125,044 69,469 - - 194,513 Collection from Year 2 Credit Sales Collected from Q1 Year 2 Credit Sales 73,710 110,565 61,425 245,700 Collected from Q2 Year 2 Credit Sales - 77,396 116,093 64,496 257,985 Collected from Q3 Year 2 Credit Sales - - 81,265 121,898 203,163 Collected from Q4 Year 2 Credit Sales - - - 97,518 97,518 Total Cash Collected from Credit Sales 256,645 257,429 258,784 283,912 1,056,770 Year 2 - Cash sales - 10% 27,300 28,665 30,098 36,118 122,181 Total Cash Collection 283,945 286,094 288,882 320,030 1,178,951 Ending Accounts Receivable 214,159 186,050 168,052 173,083 173,083 Answer c Purchase Budget (In Units) Year 2 Q1 Q2 Q3 Q4 Total Budgeted Sales In units 52,000 54,600 57,330 68,796 232,726 Desired Ending Inventory (2 Days) 1,213 1,274 1,529 1,405 1,405 Total Units Needed 53,213 55,874 58,859 70,201 234,131 Less: Beginning Inventory in units (1,115) (1,213) (1,274) (1,529) (1,115) Required Cookies Purchases in Units 52,098 54,661 57,585 68,672 233,015 Purchase cost per Unit 4.25 4.25 4.25 4.25 4.25 Required Purchases in $ 221,417 232,308 244,735 291,855 990,315 Answer d Schedule of Disbursements for Purchases Year 2 Q1 Q2 Q3 Q4 Total Beginning Accounts Payable 41739 33,213 34,846 36,710 41,739 Payments from Year 1 For Q4 Year 1 Purchases 41,739 - - - 41,739 Payment from Year 2 For Q1 Year 2 Purchases 188,204 33,213 - - 221,417 For Q2 Year 2 Purchases - 197,462 34,846 - 232,308 For Q3 Year 2 Purchases - - 208,025 36,710 244,735 For Q4 Year 2 Purchases - - - 248,077 248,077 Total Payments 229,943 230,674 242,871 284,787 988,276 Ending Accounts Payable 33,213 34,846 36,710 43,778 43,778
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