Professional Documents
Culture Documents
Problems: Set A
Sales Budget
December January February March April May
Unit sales 7,000 8,000 9,200 9,900 9,700 8,500
Unit selling price $ 10 $ 10 $ 10 $ 10 $ 10 $ 10
Total sales Revenue $ 70,000 $ 80,000 $ 92,000 $ 99,000 $ 97,000 $ 85,000
Req. 1
Cash Collections
January February March Quarter
Cash Sales (30%) $24,000 $27,600 $29,700 $81,300
Credit Sales (70%) $49,000 $56,000 $64,400 $169,400
Total Cash Collectons $73,000 $83,600 $94,100 $250,700
*All Credit Sales are collected in the month following the sale
Req. 2
Production Budget
January February March Quarter
Unit Sales 8000 9200 9900 27100
Desired Ending Inventory (25%) 2300 2475 2425 2425
Total Needed 10300 11675 12325 29525
Less: Beginning Inventory 2000 2300 2475 2000
Units to Produce 8300 9375 9850 27525
Req. 3
April May
Unit Sales 9,700 8,500
Desired Ending Inventory (10% Next) 850
Total Needed 10,550
Beginning Inventory 2,425
Req. 4
Req. 5
Req. 6
Req. 7
Combined Cash Budget
January February March Quarter
Cash Balance, Beginning $4,500 $4,414 $4,060 $4,500
Add Cash Collections 73,000 83,600 94,100 250,700
Total Cash Available 77,500 88,014 98,160 255,200
Less Cash Payments:
DM Purchases 49,126 34,442 37,894 121,462
Conversion Costs 17,960 18,313 18,835 55,108
Operating Expenses 9,000 10,200 10,900 30,100
Equipment Purchases 5,000 12,000 16,000 33,000
Tax Payments 10,000 10,000
Total Cash Payments 81,086 84,955 83,629 249,670
Ending Cash Balance Before Financing -3,586 3,060 14,531 5,531
Financing:
Borrowings 8,000 1,000 9,000
Repayments -$9,000.00 -9,000
Interest Payments -$280.00 -280
Total Financing 8,000 1,000 -9,280 -280
Cash Balance, Ending $4,414 $4,060 $5,251 $5,251
Req. 8
Req. 9
Silverman Manufacturing
Budgeted Income Statement
For the Quarter Ended March 31
Sales $271,000
Cost of Good Sold ($6 x units sold) -$162,600
Gross Profit $108,400
Operating Expenses -$30,100
Depreciation Expense -$4,800
Operating Income $73,500
Less: Interest Expense -$280
Less: Provision for Income Tax (30%) -$21,966
Net Income $51,254