Professional Documents
Culture Documents
Problems: Set A
Sales Budget
December January February March
Unit sales 7,000 8,000 9,200 9,900
Unit selling price $ 10 $ 10 $ 10 $ 10
Total sales Revenue $ 70,000 $ 80,000 $ 92,000 $ 99,000
Req. 1
Cash Collections
January February March Quarter
Cash Collections $24,000 $27,600 $29,700 $81,300
credit collections $ 49,000.0 $ 56,000.0 $ 64,400.0 $169,400
total cash collections $73,000 $83,600 $94,100 $250,700
Req. 2
Production Budget
January February March Quarter
unit sales 8,000 9,200 9,900 27,100
desired endind inventory 2,300 2,475 2,425 2,425
total needed 10,300 11,675 12,325 29,525
beginning inventory 2,000 2,300 2,475 2,000
Req. 3
April May
units sales 9,700 8,500
desired ending inventory 2,125
total needed 11,825
beginning inventory 2,425
units to produced 9,400
quantity of DM needed per unit 2
quantity of DM needed for production 18,800
Req. 4
Req. 5
Req. 6
Req. 7
Combined Cash Budget
January February March Quarter
Cash Balance, Beginning $ 4,500.00 $ 4,414.00 $ 4,122.00 $ 4,500.00
Add cash collections(req 1) $ 73,000.00 $ 83,600.00 $ 94,100.00 ###
Total cash available $ 77,500.00 $ 88,014.00 $ 98,222.00 ###
less cash disbursements:
for materials (req.4) $ 49,126.00 $ 34,442.00 $ 37,996.00 ###
for conversion cost (req.5) $ 17,960.00 $ 19,250.00 $ 19,820.00 $ 57,030.00
for operation expenses (req.6) $ 9,000.00 $ 10,200.00 $ 10,900.00 $ 30,100.00
for equipment $ 5,000.00 $ 12,000.00 $ 16,000.00 $ 33,000.00
for taxes $ 10,000.00 $ 10,000.00
total disbursements $ 81,086.00 $ 85,892.00 $ 84,716.00 ###
exess of cash $ (3,586.00) $ 2,122.00 $ 13,506.00 $ 3,506.00
Financing:
borrowings $ 8,000.00 $ 2,000.00 $ 10,000.00
repayments $ (9,000.00) $ (9,000.00)
interest $ (280.00) $ (280.00)
Total financing $ 8,000.00 $ 2,000.00 $ (9,280.00) $ 720.00
cash balance, endindg $ 4,414.00 $ 4,122.00 $ 4,226.00 $ 4,226.00
Req. 8
Req. 9
Silverman Manufacturing
Budgeted Income Statement
For the Quarter Ended March 31
Sales $ 271,000
COGS 108,400
Gross profit 162,600
operating expenses 30,100
Depreciation Expense 4,800
Operating income 127,700
less:interest $ (280.00)
less: provision for income tax 38,226
net income $89,194
April May
9,700 8,500
$ 10 $ 10
$ 97,000 $ 85,000