Problem 8-16

1.
Schedule of Expected Cash Collections for September

Accounts receivable, beginning balance 7,400

September Sales:
July 3,600
August 21,000
September 4,000
Total Cash Collections 36,000
2.
Schedule of expected cash disbursements for inventory purchases for September
Accounts payable, beginning balance 16,000
September purchases 5,000
Total cash disbursements for inventory 21,000
3. Cash budget
For the Year ended September 30
Cash balance, beginning 9,000
Add receipt
Collections from customers 36,000
Total cash available 45,000
Less disbursements
Inventory 21,000
Selling and administrative 9,000
Equipment purchases 18,000
Dividends 3,000
Total disbursements 51,000
Excess ( deficiency) of cash available over disbursements -6,000
Financing:
Borrowings 11,000
Repayments 0
Interest 0
Total financing 11,000
Cash balance, ending 5,000
1.
Schedule of expected cash collections for July, August, and September
July August
Cash sales 8,000 14,000
Credit sales:
May 4,800
June 20,160 5,760
July 3,200 22,400
August 5,600
September
2.
a.
Merchandise purchases budget for July, August, and September
July August
Budgeted cost of goods sold 24,000 42,000
Add desired ending merchandise inventory 31,500 22,500
Total needs 55,500 64,500
Less beginning merchandise inventory 18,000 31500
Required purchases 37,500 33,000
b.
Schedule of expected cash disbursements for merchandise purchases for July, August, and September
July August
Accounts payable, beginning balance 11,700
July purchases 18,750 18,750
August purchases 16,500
September purchases
Total cash disbursements 30,450 35,250
3. Janus Products, Inc.
Cash budget
July August
Cash balance, beginning 8000
Collection from customer $ 36,160 $ 47,760
Total cash available $ 44,160 $ 56,170
Less disbursment
Land costing $ 4,500
Equipment purchase $ 30,450 $ 35,250
Selling and administrative $ 10,800 $ 16,900
Dividends
Total cash disbursement $ 45,750 $ 52,150
Excess/ deficit of cash available over disbursement $ - 1590 $ 4,020
Financing
Borrowings ( at the beginning of month ) $ 10,000 $ 4,000
Repayment ( at the end of the quarter ) -
Interest -
Total financing $ 10,000 $ 4,000
Cash balance, ending $ 8,410 $ 8,020
, and September
September Quarter
10,000 32,000

4,800
25,920
6,400 32,000
39,200 44800
4,000 4,000

ember
September Quarter
30,000 96,000
20,250 20250
50,250 116250
22500
27,750 98,250

or July, August, and September

September Quarter
11,700
37,500
16,500 33,000
13,875 13,875
30,375 96,075

September Quarter

$ 59,600
$ 67,620

$ 30,375
$ 12,600
$ 1,000
$ 43,975
$ 23,645
$ -14,000
$-380
$ -14,380
$ 8,365
1.

Phototech, Inc
Cash budget
For June
Cash Balance, beginning $8,000
Add receipt
Collection from customers $227,000
Total Cash available $235,000
Less disbursement
Purchase of inventory $170,000
Selling and administrative $51,000
Equipment purchases $9,000
Total disbursement $230,000
Excess ( deficency ) of cash avaiblable $5,000
Financing

2.

Minden company
Budgeted Income Statement
For the month of June
Sales 250,000
COGS
Beginning inventory 30,000
Add purchase 200,000
Goods available for sale 230,000
Ending inventory 40,000
COGS 190,000
Gross margin 60,000
Selling and administrative 53,000
Net operating income 7,000
Interest expense 500
Net income 6,500
3
Minden company
Budgeted Balance Sheet
For the month of June

Assets
Cash 7,500
Account Receivable 95,000
Inventory 40,000
Building and equipmet, net of depreciation 507,000
Total assets 649,500
Liabilities and stockholder's equity
Account payable 120,000
Note payable 18,000
Capital Stock 420,000
Retained Earning 91,500
Total Liabilities and stockholder's equity 649,500
1. Schedule of expected cash collection from sales
Cash sales - June 60,000
Collection on AR
May 30 balance 72,000
June credit sales 95,000
Total Cash collection 227,000

2. Schedule of expected cash disbursement

May 30 AR balance 90,000
May purchase 80,000
Total cash disbursement 170,000