homework for accounting

C

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0

8

29

budget:

per unit

$ 8 $ 8 $ 8

sales

Correct! Correct! Correct!

$ 48,000

140,000

280,000

120,000 120,000

Correct! Correct! Correct! Correct!

Budgeted sales in units
0 0 0 0

0 0 0 0

CRAVAT SALES COMPANY

Budget

April May June Quarter

35,000 45,000 60,000 140,000

22,000 22,000

14,000

3,000 3,000

4,000 4,000 4,000 12,000

0 0 0 0

CRAVAT SALES COMPANY

Sales
Salaries and wages 22,000
Utilities 14,000

expired

Miscellaneous 3,000
0

CRAVAT SALES COMPANY

June 30
Cash

, purchases

, no par

May sales
June sales
Total

Total

12,000

0

Student Name: AllenR.mod.4
Class:
Case 08-29
CRAVAT SALES COMPANY
Budgets
April May June Quarter
1a.

Sales
Budgeted sales in units 35,000 45,000 60,000 1

40,000
Selling price $ 8
Total $

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280,000 $ 360,000 $ 480,000 $ 1,

1

20,000
Correct!
1b. Schedule of expected cash collections:
February sales $ 48,000
March sales 1

12,000 56,000 168,000
April sales 70,000 $ 70,000
May sales 90,000 180,000 270,000
June sales
Total cash collections $ 230,000 $ 286,000 $ 370,000 $ 886,000
1c. Merchandise purchases budget:
Add budgeted ending inventory
Total needs
Less beginning inventory
Required unit purchases
Unit cost
Required dollar purchases
1d. Budgeted cash disbursements for merchandise purchases:
March purchases
April purchases
May purchases
June purchases
Total cash payments
2.
Cash
For the Three Months Ending

June 30
Cash balance, beginning
Add receipts from customers
Total cash available
Less disbursements:
Purchase of inventory
Sales commissions
Salaries and wages 22,000 66,000
Utilities 1

4,000 14,000 42,000
Miscellaneous 3,000 9,000
Dividends paid
Land purchases 25,000
Total disbursements
Excess (deficiency) of receipts
over disbursements
Financing:
Borrowings
Repayments
Interest
Total financing
Cash balance, ending
3.
Budgeted Income Statement
For the Three Months Ended June 30
Sales in units
Variable expenses:
Cost of goods sold
Commissions
Contribution margin
Fixed expenses:
Insurance
Depreciation 1,500
Net operating income
Less interest expense
Net income
4.
Budgeted Balance Sheet
Assets
Accounts receivable
Inventory
Unexpired insurance
Fixed assets, net of depreciation
Total assets
Liabilities and Stockholders’ Equity
Accounts payable
Dividends payable
Loans payable, bank
Capital stock
Retained earnings
Total liabilities and equity
Accounts receivable at June 30:
Retained earnings at June 30:
Balance, March 31 $ 14,000
Add net income
Less dividends declared
Balance, June 30

Enter the appropriate data in the yellow cells. Your final answers for each section will be verified.
Enter the appropriate data in the yellow cells. Your answers for “Cash balance, ending” will be verified.
Enter the appropriate data in the yellow cells. Your answer for “Net income” will be verified.
Enter the appropriate data in the yellow cells. Your answer for “Total assets” will be verified.
HINT: Use calculation below.
HINT: Use calculation below.

Given C08-29

CRAVAT SALES COMPANY

Selling price $ 8

20,000

April 35,000
May 45,000
June 60,000

40,000

50%

50%

25%

Utilities $ 14,000
Insurance

Depreciation

Miscellaneous

Assets

Cash $ 14,000

Accounts receivable

February sales $ 48,000
March sales 168,000

Fixed assets, net of depreciation

Total assets

Liabilities and Stockholders’ Equity

Accounts payable

Dividends payable 12,000
Capital stock

Retained earnings

$ 574,600

$ 1,000

$ 10,000

Given Data Case 08-29:
Minimum ending cash balance $ 10,000
Recent and forecast sales (in units):
January (actual)
February (actual) 24,000
March (actual) 28,000
July
August 36,000
September 32,000
Desired ending inventories (percentage 90%
of next month’s sales)
Cost of earrings $ 5
Purchases paid as follows:
In month of purchase 50%
In following month
Collection on sales:
Sales collected current month 25%
Sales collected following month
Sales collected 2nd month following
Variable monthly expenses:
Sales commissions (per tie) $ 1.00
Fixed monthly expenses:
Wages and salaries $ 22,000
$ 1,200
$ 1,500
$ 3,000
Land purchased in May $ 25,000
Dividends declared each quarter $ 12,000
Balance sheet at March 31:
216,000
Inventory (31,500 units) 157,500
Prepaid insurance 14,400
172,700
$ 574,600
$ 85,750
300,000
176,850
Total liabilities and stockholders’ equity
Agreement with Bank:
Borrowing increments $ 1,000
Maximum borrowing amount $ 40,000
Interest rate per month 1%
Repayment increments
Total of interest paid each quarter 100%
Required minimum cash balance

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