| Sales Budget | ||||
| April | May | June | Total | |
| Budgeted sales (in units) | 65,000 | 1,00,000 | 50,000 | 2,15,000 |
| Multiplied by: Unit price | 10 | 10 | 10 | 10 |
| Budgeted sales (in dollars) | 6,50,000 | 10,00,000 | 5,00,000 | 21,50,000 |
| Schedule of Cash Collections | ||||
| April | May | June | Total | |
| From February sales | 26,000 | 26,000 | ||
| From March sales | 2,80,000 | 40,000 | 3,20,000 | |
| From April sales | 1,30,000 | 4,55,000 | 65,000 | 6,50,000 |
| From May sales | 2,00,000 | 7,00,000 | 9,00,000 | |
| From June sales | 1,00,000 | 1,00,000 | ||
| Total cash collections | 4,36,000 | 6,95,000 | 8,65,000 | 19,96,000 |
| Merchandise Purchases Budget | ||||
| April | May | June | Total | |
| Unit sales | 65,000 | 1,00,000 | 50,000 | 2,15,000 |
| Desired ending inventory | 40,000 | 20,000 | 12,000 | 12,000 |
| Total goods available for sale | 1,05,000 | 1,20,000 | 62,000 | 2,27,000 |
| Beginning inventory | (26,000) | (40,000) | (20,000) | (26,000) |
| Budgeted purchases (in units) | 79,000 | 80,000 | 42,000 | 2,01,000 |
| Budgeted purchases (in units) | 79,000 | 80,000 | 42,000 | 2,01,000 |
| Multiplied by: Average cost of clothing | 4 | 4 | 4 | 4 |
| Budgeted purchases (in dollars) | 3,16,000 | 3,20,000 | 1,68,000 | 8,04,000 |
| Schedule of Expected Cash Disbursements | ||||
| April | May | June | Total | |
| From March purchases | 1,00,000 | 1,00,000 | ||
| From April purchases | 1,58,000 | 1,58,000 | 3,16,000 | |
| From May purchases | 1,60,000 | 1,60,000 | 3,20,000 | |
| From June purchases | 84,000 | 84,000 | ||
| Budgeted payments for purchases | 2,58,000 | 3,18,000 | 2,44,000 | 8,20,000 |
| Budgeted payments for: | ||||
| Purchases | 2,58,000 | 3,18,000 | 2,44,000 | 8,20,000 |
| Sales commissions | 26,000 | 40,000 | 20,000 | 86,000 |
| Advertising | 2,00,000 | 2,00,000 | 2,00,000 | 6,00,000 |
| Rent | 18,000 | 18,000 | 18,000 | 54,000 |
| Wages and salaries | 1,06,000 | 1,06,000 | 1,06,000 | 3,18,000 |
| Utilities | 7,000 | 7,000 | 7,000 | 21,000 |
| Acquisition of new equipment | 16,000 | 40,000 | 56,000 | |
| Dividends | 15,000 | 15,000 | ||
| Total cash disbursements | 6,30,000 | 7,05,000 | 6,35,000 | 19,70,000 |
| Cash Budget | ||||
| April | May | June | Total | |
| Beginning cash balance | 74,000 | 50,000 | 50,000 | 74,000 |
| Add receipts: | ||||
| Collections from customers | 4,36,000 | 6,95,000 | 8,65,000 | 19,96,000 |
| Total cash available | 5,10,000 | 7,45,000 | 9,15,000 | 20,70,000 |
| Less cash disbursements: | ||||
| Purchases | 2,58,000 | 3,18,000 | 2,44,000 | 8,20,000 |
| Sales commissions | 26,000 | 40,000 | 20,000 | 86,000 |
| Advertising | 2,00,000 | 2,00,000 | 2,00,000 | 6,00,000 |
| Rent | 18,000 | 18,000 | 18,000 | 54,000 |
| Wages and salaries | 1,06,000 | 1,06,000 | 1,06,000 | 3,18,000 |
| Utilities | 7,000 | 7,000 | 7,000 | 21,000 |
| Acquisition of new equipment | – | 16,000 | 40,000 | 56,000 |
| Dividends | 15,000 | – | – | 15,000 |
| Total cash disbursements | 6,30,000 | 7,05,000 | 6,35,000 | 19,70,000 |
| Excess (deficiency) | (1,20,000) | 40,000 | 2,80,000 | 1,00,000 |
| Financing: | ||||
| Borrowings | 1,70,000 | 10,000 | 1,80,000 | |
| Repayments | (1,80,000) | (1,80,000) | ||
| Interest | (3,500) | (3,500) | ||
| Total financing | 1,70,000 | 10,000 | (1,83,500) | (3,500) |
| Ending cash balance | 50,000 | 50,000 | 96,500 | 96,500 |
| Budgeted Income Statement | ||||
| April | May | June | Total | |
| Sales | 6,50,000 | 10,00,000 | 5,00,000 | 21,50,000 |
| Variable Costs: | ||||
| Cost of Goods Sold | (2,60,000) | (4,00,000) | (2,00,000) | (8,60,000) |
| Sales Commissions | (26,000) | (40,000) | (20,000) | (86,000) |
| Contribution Margin | 3,64,000 | 5,60,000 | 2,80,000 | 12,04,000 |
| Fixed Costs: | ||||
| Advertising | (2,00,000) | (2,00,000) | (2,00,000) | (6,00,000) |
| Rent | (18,000) | (18,000) | (18,000) | (54,000) |
| Wages and salaries | (1,06,000) | (1,06,000) | (1,06,000) | (3,18,000) |
| Utilities | (7,000) | (7,000) | (7,000) | (21,000) |
| Insurance | (3,000) | (3,000) | (3,000) | (9,000) |
| Depreciation | (14,000) | (14,000) | (14,000) | (14,000) |
| Interest | (3,500) | (14,000) | ||
| Total Fixed Costs | (3,48,000) | (3,48,000) | (3,51,500) | (10,47,500) |
| Net Proft | 16,000 | 2,12,000 | (71,500) | 1,56,500 |
| Balance Sheet | ||||
| Assets | ||||
| Cash | 96,500 | |||
| Accounts Receivable | 5,00,000 | |||
| Inventory | 48,000 | |||
| Prepaid Insurance | 12,000 | |||
| Fixed Assets, net of depreciation | 9,64,000 | |||
| Total Assets | 16,20,500 | |||
| Liabilities and Shareholders’ Equity | ||||
| Accounts Payable | 84,000 | |||
| Dividends Payable | 15,000 | |||
| Common Shares | 8,00,000 | |||
| Retained Earnings | 7,21,500 | |||
| Total Liabilities and Shareholders’ Equity | 16,20,500 | |||
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