Master Budget
By: Anna • Coursework • 353 Words • December 6, 2009 • 996 Views
Essay title: Master Budget
Schedule A: Sales Budget
JAN FEB MAR TOTAL
Recent and Forecasted Sales 62,000 75,000 38,000 175,000
Schedule B: Cash Collections
JAN FEB MAR
60% of current month sales 37,200 45,000 22,800
30% of previous month sales 7,500 18,600 22,500
10% of 2 months earlier 2,500 2,500 6,200
Total collections 47,200 66,100 51,500
Schedule C: Purchases
JAN FEB MAR
Desired ending inventory 6,000 6,000 6,000
Cost of goods sold 31,000 37,500 19,000
Total needed 37,000 43,500 25,000
less beginning inventory -39,050 -8,050 -6,000
Total Purchases (2050) or 0 35,450 19,000
Schedule D: Cash Disbursements
JAN FEB MAR
35,550 0 35,453
Cash receipts and disbursements:
Collections from customers 47,200 66,100 51,500
Cash disbursements for purchases 35,550 0 35,540
Rent 8,050 250 250
Wages and slaries 15,000 15,000 15,000
Miscellaneous 2,500 2,500 2,500
Fixtures 0 0 3,000
Dividends 1,500 0 0
Net cash receipts and disbursements -15,400 48,350 -4,700
Excess of cash before financing -15,400 48,450 27,890
Financing:
Borrowing 15,500 0 0
Repayments 0 -15,500 0
Interest 0 -258 0
Total cash from financing 15,500 -15,758 0
Ending cash balance 5,100 37,692 32,992
Budgeted Income Statement
January-March 20X5
JAN FEB MAR January-March Total
Sales 62,000 75,000 38,000 175,000
Cost of goods sold 31,000 37,500 19,000 87,500
Gross margin 31,000 37,500 19,000 87,500
Operating expenses:
Salaries and wages 15,000 15,000 15,000 45,000
Rent 250 250 16,750 17,250
Other (miscellaneous) 2,500 2,500 2,500 7,500
Insurance 125 125 125 375
Depreciation 250 250 250 750
Total operating expenses 18,125 18,125 34,625 70,875