Your required tasks are as follows:
1.Insert all the data given below. This is the only TAB which can have hard coded entries. The balance sheet from the last accounting period is given.
Prepare a master budget for the three-month period ending June 30, 2012. You MUST use formulas in all cells, not constant numbers. That means all cells in your budget must be linked to the data from TAB 1 or completed data from TAB 2. A template has been provided. Include the following detailed budgets:
1.a.A sales budget by month and in total.
b.A schedule of expected cash collections from sales, by month and in total.
c.A merchandise purchases budget in units and in dollars. Show the budget by and in total.
d. A schedule of expected cash disbursements for merchandise purchases, by month and in total.
2.A cash budget. Show the budget by month and in total.
TAB 3/INCOME STATEMENT
1.A budgeted income statement for the three month period ending June 30. Use the contribution approach. You MUST use formulas in all cells, not constant numbers. A partial template has been provided.
TAB 4/BALANCE SHEET
1. A budgeted balance sheet as of June 30. You MUST use formulas in all cells, not constant numbers. A template has been provided.
The company desires a minimum ending cash balance each month of $10,000.
The ties are sold to retailers for $8.00 each. Recent and forecasted sales in units are as follows:
The large buildup in sales before and during June is due to Fatheras Day. Ending inventories are supposed to equal 90% of the next monthas sales in units. The ties cost the company $5 each.
Purchases are paid as follows: 50% in the month of purchase and the remaining 50% in the following month. All sales are on credit, with no discount, and payable within 15 days. The company has found, however, that only 25% of a monthas sales are collected by month-end. An additional 50% is collected in the following month, and the remaining 25% is collected in the second month following sale. Bad debts have been negligible.
The companyas monthly selling and administrative expenses are as follows:
Sales commissions$1 per tie
Wages and salaries$22,000
All selling and administrative expenses are paid during the month, in cash, with the exception of depreciation and insurance expired. Land will be purchased during May for $25,000 cash. The company declares dividends of $12,000 each quarter, payable in the first month of the following quarter.
The company has an agreement with a bank that allows it to borrow in increments if $1,000 at the beginning of each month, up to a total loan balance of$100,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $10,000 in cash.
The companyas balance sheet at March 31 is given on TAB 1.
excel file that you do the assignment on. If you have any questions before hand about this assignment please call me as soon as you need help. I called and they told me to put one page even though this project has nothing to do with essays or words. Its mostly all numbers on excel file and they have to be done using formulas.
Newport Tie Company Newport Tie Company
Balance Sheet Balance Sheet
Cash 14,000 Cash $14,000
Accounts Receivable (48,000 February Sales Accounts Receivable
and $168,000 March Sales) 216,000 February Sales $48,000
Merchandise Inventory(31500 units) 157,500 Merchandise Inventory(31500 units) 157,500
Prepaid Insurance 14,400 Prepaid Insurance 14,400
Fixed Assets Net of Depreciation 172,700 Fixed Assets Net of Depreciation 172,700
Total Assets 574,600 Total Assets $574,600
Liabilities and Stockholders’ Equity Liabilities and Stockholders’ Equity
Accounts Payable 85,750 Accounts Payable $85,750
Dividends Payable 12,000 Dividends Payable 12,000
Total Liabilities 97,750 Total Liabilities 97,750
Stockholders’ Equity Stockholders’ Equity
Common stock 300,000 Common stock 300,000
Retained Earnings 176,850 Retained Earnings 176,850
Total Stockholders’ Equity 476,850 Total Stockholders’ Equity 476,850
Total Liabilities and Stockholders’ Equity 574,600 Total Liabilities and Stockholders’ Equity $574,600
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