Ac505 Case Study Essay

636 Words Jun 10th, 2012 3 Pages
PROJECT A - Case 9-30
Student Name:
SALES BUDGET:
April May June Quarter
Budgeted unit sales 65,000 100,000 50,000 215,000
Selling price per unit 10 10 10 10
Total Sales 650,000 1,000,000 500,000 2,150,000
SCHEDULE OF EXPECTED CASH COLLECTIONS:
April May June Quarter
February sales 26,000 26,000
March sales 280,000 40,000 320,000
April sales 130,000 455,000 65,000 650,000
May sales 200,000 700,000 900,000
June sales 100,000 100,000
Total Cash Collections 436,000
…show more content…
50,000 50,000 174,000
Add collections from customers 436,000 695,000 865,000 1,996,000
Total cash available 510,000 745,000 915,000 2,170,000
Less Disbursements Merchandise purchases 258,000 318,000 244,000 820,000
Fixed Cost Advertising 200,000 200,000 200,000 600,000 Rent 18,000 18,000 18,000 54,000 Salaries 106,000 106,000 106,000 318,000 Commissions 26,000 40,000 20,000 86,000 Utilities 7,000 7,000 7,000 21,000 Equipment purchases 16,000 40,000 56,000 Dividends paid 15,000 15,000
Total Disbursements 630,000 705,000 635,000 1,970,000
Excess (deficiency) of receipts over disbursements (120,000) 40,000 280,000 200,000
Financing:
Borrowings 170,000 10,000 - 180,000 Repayments (180,000) (180,000) Interest
(170,000*1%*3); (10,000*1%x2) - - (5,300) (5,300)
Total financing 170,000 10,000 (185,300) 194,700
Cash balance, ending 50,000 50,000 94,700 394,700
EARRINGS

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