1) Formulas shall be used for all calculations including the linking of data fro
ID: 2605268 • Letter: 1
Question
1) Formulas shall be used for all calculations including the linking of data from the schedules to the financial statements 2) Appropriate formatting including titles, borders, numerical structure, etc. shall be used in all applicable situations Required 1) Using the data from schedules provided a) Prepare a cash budget for the quarter ending September 30, 2016 using tab "Cash Budget" b) Prepare a budgeted income statement for the quarter ending September 30, 2016 using tab "Income Statement c) Prepare a budgeted balance sheet as at September 30, 2016 using tab "Balance Sheet"Explanation / Answer
a. Cash budget:
Cash budget:
July
August
September
Beginning cash balance
10,000
13,850
19,640
Add: Cash collection from sales
25,200
25,450
24,580
Total cash available
35,200
39,300
44,220
Less: Disbursements
Purchase for inventory
(14,550)
(12,960)
(12,015)
Sales and administrative expenses
(4,700)
(4,700)
(4,700)
Commission paid
(2,100)
(2,000)
(2,880)
Total disbursements
(21,350)
(19,660)
(19,595)
Excess cash / (deficiency)
13,850
19,640
24,625
Ending cash balance
13,850
19,640
24,625
Budgeted income statement:
Income statement:
Sales
69,600
Less: cost of goods sold
39,525
Gross profit
30,075
Less: operating expenses
Sales commission
6,980
Sales and administrative expenses
15,000
Net income before taxes
8,095
Budgeted balance sheet:
Balance sheet
Assets:
Cash
24,625
Accounts receivable (34,700-16,500-18,200+12,750+16,320)
29,070
Inventory
3,675
Total current assets
57,370
Property plant and equipment
12,000
Less: Accumulated depreciation (7,200+900)
(8,100)
3,900
Total assets
61,270
Liabilities and equity:
Accounts payable
14,850
Common stock
100
Retained earnings (17,875+8,095+20,350revenue-costs in trail balance)
46,320
61,270
Cash budget:
July
August
September
Beginning cash balance
10,000
13,850
19,640
Add: Cash collection from sales
25,200
25,450
24,580
Total cash available
35,200
39,300
44,220
Less: Disbursements
Purchase for inventory
(14,550)
(12,960)
(12,015)
Sales and administrative expenses
(4,700)
(4,700)
(4,700)
Commission paid
(2,100)
(2,000)
(2,880)
Total disbursements
(21,350)
(19,660)
(19,595)
Excess cash / (deficiency)
13,850
19,640
24,625
Ending cash balance
13,850
19,640
24,625
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