Data Section:

Collections on sales:
Current month
Following month
2nd following month

20%
70%
10%

Minimum monthly
ending cash balance:
Annual interest rate:

$30,000
10%

Cash payments:
Current month
Following month

50%
50%

Desired End. Inv. (% of

next month's sales):

80%

Monthly data:
February
Unit sales
Sell. price (each mo.)
Cost (each mo.)
Expenses:
Variable:
Sales comm'n per unit
Fixed:
Wages and salaries
Electric/Telephone
Insurance expired
Depreciation
Miscellaneous

July

August September

$15
$8

$15
$8

20,000
$15
$8

25,000
$15
$8

35,000
$15
$8

40,000
$15
$8

30,000
$15
$8

$2

$2

$2

$2

$2

$2

$2

$30,000
15,000
1,000
1,500
2,500

$30,000
15,000
1,000
1,500
2,500

$30,000
15,000
1,000
1,500
2,500

$30,000
15,000
1,000
1,500
2,500

$30,000
15,000
1,000
1,500
2,500

$30,000
15,000
1,000
1,500
2,500

Land purchase
Dividends paid
Dividends declared

Balance sheet at March 31:

Assets:
Cash
Accounts receivable
Inventory
Unexpired insurance
Fixed assets (net of dep'n)
Total assets

March

$22,000
$10,000
10000

$18,000
276,000
160,000
15,000
152,500
$621,500

$10,000
$10,000

Liabilities and Stockholders' Equity:

Accounts payable, purchases
$96,000
Dividends payable
10,000
Capital stock, no par
300,000
Retained earnings
215,500
Total liabilities and equity

$621,500

Report Section:
Sales budget:

Sales in units
Selling price
Total

Quarter
Total

April

May

June

25,000
15
375,000

35,000
15
525,000

40,000
15
600,000

30,000
15
450,000

0
240,000
375,000
472,500
120,000
1,207,500

Schedule of budgeted cash collections:

From February
From March
From April
From May
From June
Total

0
210,000
75,000

30,000
262,500
105,000

285,000

397,500

37,500
367,500
120,000
525,000

25,000
28,000
53,000
20,000
33,000
8
264,000

35,000
32,000
67,000
28,000
39,000
8
312,000

40,000
24,000
64,000
32,000
32,000
8
256,000

100,000
84,000
184,000
80,000
104,000
24
832,000

132,000

132,000
156,000

156,000
128,000
284,000

0
264,000
312,000
128,000
704,000

Purchases budget:
Unit sales
Desired ending inv.
Total
Less: beginning inv.
Required purchases (units)
Unit cost
Required purchases (dollars)

Schedule of budgeted cash disbursements for purchases:

For March
For April
For May
For June
Total

132,000

288,000

Data Section:
Collections on sales:
Current month
Following month
2nd following month

20%
70%
10%

Minimum monthly
ending cash balance:
Annual interest rate:

$0
0%

Balance sheet at March 31:

Assets:
Cash
Accounts receivable
Inventory
Unexpired insurance
Fixed assets (net of dep'n)
Total assets

$18,000
276,000
160,000
15,000
152,500
$621,500

Cash payments:
Current month
Following month

0%
0%

Desired End. Inv. (% of

next month's sales):

0%

Liabilities and Stockholders' Equity:

Accounts payable, purchases
Dividends payable
Capital stock, no par
Retained earnings
Total liabilities and equity

May
June

$96,000
10,000
300,000
215,500
$621,500

430000
540000

Report Section:
Sales budget:

Sales in units
Selling price
Total

July

August

600,000

900,000

Quarter
September Total

500,000

2,000,000

60,000
630,000
100,000
790,000

43,000
432,000
600,000
810,000
100,000
1,985,000

Schedule of budgeted cash collections:

From May
From June
From July
From august
From September
Total

43,000
378,000
120,000

541,000

54,000
420,000
180,000
654,000

Acounts Receivable @ 9/30/12

august
September

90,000
400,000
490,000