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    Case 9-25: Sales Budget

    Uploaded by

    Umar Abbas
    The document contains budgets for sales, cash collections, merchandise purchases, cash disbursements, and cash for April, May and June. It budgets total sales of $2.15 million with expected cash collections of $1.996 million. Merchandise purchases are budgeted at $215,000 costing $804,000. Total cash disbursements are budgeted at $1.97 million, leaving an excess cash of $280,000 for the period to be financed by $100,000 in new borrowings and $180,000 in repayments.

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    Case 9-25: Sales Budget

    Uploaded by

    Umar Abbas
    9 views6 pages
    The document contains budgets for sales, cash collections, merchandise purchases, cash disbursements, and cash for April, May and June. It budgets total sales of $2.15 million with expected cash collections of $1.996 million. Merchandise purchases are budgeted at $215,000 costing $804,000. Total cash disbursements are budgeted at $1.97 million, leaving an excess cash of $280,000 for the period to be financed by $100,000 in new borrowings and $180,000 in repayments.

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    The document contains budgets for sales, cash collections, merchandise purchases, cash disbursements, and cash for April, May and June. It budgets total sales of $2.15 million with expected cash collections of $1.996 million. Merchandise purchases are budgeted at $215,000 costing $804,000. Total cash disbursements are budgeted at $1.97 million, leaving an excess cash of $280,000 for the period to be financed by $100,000 in new borrowings and $180,000 in repayments.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    9 views6 pages

    Case 9-25: Sales Budget

    Uploaded by

    Umar Abbas
    The document contains budgets for sales, cash collections, merchandise purchases, cash disbursements, and cash for April, May and June. It budgets total sales of $2.15 million with expected cash collections of $1.996 million. Merchandise purchases are budgeted at $215,000 costing $804,000. Total cash disbursements are budgeted at $1.97 million, leaving an excess cash of $280,000 for the period to be financed by $100,000 in new borrowings and $180,000 in repayments.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 6

    Case 9-25

    SALES BUDGET:
    Budgeted unit sales
    Selling price per unit
    Total Sales

    SCHEDULE OF EXPECTED CASH COLLECTIONS:


    February sales
    March sales
    April sales (20%)
    May sales
    June sales
    Total Cash Collections

    MERCHANDISE PURCHASES BUDGET:


    Budgeted unit sales
    Add desired ending inventory
    Total needs
    Less beginning inventory
    Required purchases
    Cost of purchases @ $4 per unit

    BUDGETED CASH DISBURSEMENTS FOR MERCHANDISE PURCHASES:


    Accounts payable
    April purchases
    May purchases
    June purchases
    Total cash payments

    CASH BUDGET
    Cash balance
    Add collections from customers
    Total cash available

    Less Disbursements
    Merchandise purchases
    Advertising
    Rent
    Salaries
    Commissions
    Utilities
    Equipment purchases
    Dividends paid
    Total Disbursements
    Excess (deficiency) of receipts
    over disbursements
    Financing:
    Borrowings
    Repayments
    Interest
    Total financing

    10%
    10%
    10%
    70%
    20%

    70%
    70%
    20%

    40%

    given
    50%
    50%
    50%

    April
    65,000
    10

    May
    100,000
    10

    June
    50,000
    ###

    Total
    215,000
    10

    650,000

    1,000,000

    500,000

    2,150,000

    June

    65,000
    700,000
    100,000

    Total
    26,000
    320,000
    650,000
    900,000
    100,000

    April
    26,000
    280,000
    130,000

    May
    40,000
    455,000
    200,000

    436,000

    695,000

    865,000

    1,996,000

    April
    65,000
    40,000
    105,000
    26,000
    79,000

    May
    100,000
    20,000
    120,000
    40,000
    80,000

    June
    50,000
    12,000
    62,000
    20,000
    42,000

    Total
    215,000
    72,000
    287,000
    86,000
    201,000

    $316,000

    $320,000

    $168,000

    $804,000

    April
    $100,000
    158,000

    May

    June

    $158,000
    160,000

    258,000

    318,000

    April
    74,000
    436,000
    510,000

    May
    50,000
    695,000
    745,000

    $160,000
    84,000

    Total
    100,000
    316,000
    320,000
    84,000

    244,000

    820,000

    June
    ###
    865,000
    915,000

    Total
    174,000
    1,996,000
    2,170,000

    74,000
    1,996,000
    2,070,000

    given

    258,000
    200,000
    18,000
    106,000
    26,000
    7,000
    15,000
    630,000

    318,000
    200,000
    18,000
    106,000
    40,000
    7,000
    16,000

    244,000
    ###
    ###
    ###
    20,000
    ###
    40,000

    705,000

    (120,000)

    40,000

    170,000

    10,000

    *
    170,000

    10,000

    635,000

    820,000
    600,000
    54,000
    318,000
    86,000
    21,000
    56,000
    15,000
    1,970,000

    820,000
    600,000
    54,000
    318,000
    86,000
    21,000
    56,000
    15,000
    1,970,000

    280,000

    200,000

    100,000

    274,700

    180,000
    (180,000)
    (5,300)
    (5,300)

    (180,000)
    (5,300)
    94,700

    100,000
    0
    100000
    0

    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    100000
    0
    0
    -180000
    180000
    5300
    280000

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