Professional Documents
Culture Documents
Problem 9-25
Cash Budget
April May June Quarter
Cash balance, beginning 8000 4350 4590 8000
Add cash collections 56000 67200 82800 206000
Total cash available 64000 71550 87390 222940
Less cash disbursements:
For inventory 47850 58500 53550 159900
For expenses 13300 15460 18700 47460
For equipment 1500 0 0 1500
Total cash disbursements 62650 73960 72250 208860
Excess (deficiency) of cash 1350 -2410 15140 14080
Financing:
Borrowings (at the beginning of mon.) 3000 7000 10000
Repayments (in the end of quart.) -10000 -10000
Interest -230 -230 (3000*1%)*3+(7000*1%)*2
Total financing 3000 7000 -10230 -230
Cash balance, ending 4350 4590 4910 4910
Shilow Company
Budgeted Income Statement
For The Quarter Ended June 30
Sales 222000
Cost of goods sold 166500
Gross margin 55500
Operating expenses:
Commissions 26640
Rent 7500
Other expenses 13320
Depreciation 2700
Total operating expenses: 50160
Operating net income 5340
Interest expense 230
Net income 5110
Shilow Company
Budgeted Balance Sheet
June 30, xx
Assets
Current assets:
Cash 4910
Accounts receivable 36000 40% of June sales
Inventory 28800 desired ending inv. June
Total current assets: 69710
Current liabilities:
Accounts payable 21150 50% of June purchases
Total current liabilities 21150
Stockholders' equity:
Capital stock 150000
Retained earnings 17360 beg.bal. 12,250+net income
Total stockholders' equity 167360