Has Company is a retail company that specializes i...
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Has Company is a retail company that specializes in sellingoutdoor camping equipment .The company is considering opening a newstore on October 1,2015.the company president formed a mastercommittee to prepare a master budget for the first three months ofoperation.As budget coordinator,you have been assigned thefollowing tasks.
Required
a&b.October sales are estimated be 250,00 of which 40percent will be cash and 60 percent will be credit.The companyexpects sales to increase at the rate of 8 percent per month .Thecompany expects to collect 100 percent of the accounts receivablegenerated by credit sales in the month following the sale .Preparea sales budget and a schedule of cash receipts.
October November December
Sales Budget ____________ ______________ _____________
Cash Sales ______________ __________________ _________________
Sales on Account ___________ _________________________________
Total budgeted Sales _____________ ___________________________________
schedule on cash Receipts _____________ _____________________________________
Current Cash Sales ____________ ______________________________________
Pus collections from A/R ______________ ________________________________________
Total Collections _______________ _______________________________________
c&d.The cost of goods sold is 60 percent of sales.thecompany desires to maintain a minimum ending inventory equal to 10percent of the next month's cost of goods sold.However,endinginventory of December is expected to be $12,000.the company pays 70percent of accounts payable in the month of purchase and theremaining 30 percent in the following month assume that allpurchases are made on account .Prepare an inventory purchasesbudget and a cash payments budget for inventory purchases(Roundyour answers to the nearest whole dollar).
October November December
Inventory purchase budget ______________________________________ ________________
Purchases ___________________ _________________________________________
Plus or Less desired ending inventory ________________________________ ____________________
Inventory need ____________ _________________________________________
_______________________________________________________________________________________________________
Required purchases on account ___________________________________ ______________________
Schedule of Cash Payments Budget for inventoryPurchases_____________ ______________ __________________
Payments of current month's accounts payables ______________________________ _________________
Payment for prior month's accounts payable ____________________________ _________________
Total budgeted payments for inventory ___________________________ _________________
e&f.Budgeted selling and administrative expenses per monthfollow
Salary expense (fixed) $18,000
sales commissions 5% of sales
Supplies Expense 2 percent of sales
utilities(fixed) $1,400
Depreciation on store fixtures(fixed) $4,000
Rent(fixed) $4,800
Miscellaneous( fixed ) 1,200
The capital expenditures budget indicates that Haas will spend$164000 on October 1 for store fixtures ,which are expected to havea $20,000 salvage value and a three -year 936) month usefullife.
Utilities and Sales commissions are paid the month after theyare incurred ;all other expenses are paid in the month in whichthey are incurred.Prepare a selling and administrative expensesbudget and a cash payments budget for selling and administrativeexpenses .(Round your answers to the nearest whole dollaramount)
October November December
Selling and administrative Expense budget ____________________________ _________________
Salary Expense ______________ _________________________________
Sales Commissions ____________ ____________________________________
Supplies expenses _________ ________________________________
Utilities _____________ __________ ________________
Depreciation on store fixtures
Rent
Miscellaneous
Total S&A EXPENSES
Salary expense
Sales commissions
Supplies expense
utilities
Depreciation on store fixtures
Rent
Miscellaneous
total payments for S&A expenses.
g-HaaS borrows funds in increments of $1,000,and repays them onthe last day of the month.Repayments may be made in any amountavailable .The company also pays its vendors on the last day of themonth .it pays interest of 1 percent per month in cash on the lastday of the month.To be prudent,the company desires to maintain a12,000 cash cushion .prepare a cash budget(Any repayments/shortagewhich should be indicated with a minus sign .Round your answers tonearest whole dollar amount)
Cash Budget
October November December
______________________________________________________________________________
Cash available
________________________________________________________________________________________
Lees:Payments
_______________________________________________________________________________________
_________________________________________________________________________________________
_____________________________________________________________________________________________
_______________________________________________________________________________________________
________________________________________________________________________________________________
Total budgeted payments
Payments minus receipts
____________________________________________________________________________________________
Financing activity
_____________________________________________________________________________________________
_______________________________________________________________________________________________
h.Prepare a pro-forma income statement for the quarter (Roundyour answers to nearest whole dollar amount)
Haas Company
Pro forma income statement
For the Quarter ended December 31,,2015
i.
Prepare a pro forma balance sheet at the end of thequarter9Amounts to be deducted should be indicated by a minussign
Haas Company
Pro Forma Balance Street
As of December 31,2015
Assets _____________ _______________
_________
_________
____________
_____________
____________
_______________
Total assets ________________
Liabilities
___________
____________
_____________
_____________
Stockholders 'equity
___________________
_______________________
Total liabilities and stockholders equity_____________________
j.Prepare a pro forma statement of cash flows for thequarter(Amounts to be deducted should be indicated by a minussign.Round your answers to nearest whole dollar amount.)
Haas Company
Pro Forma Statement of Cash Flows
Cash flows from operating activities ____________________________________________
_________________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
________________________________________________________________________________
Net Cash flows from operating activities ___________________
Cash flows from investing activities_______________________________________________
_______________________________________ ________________________________________
Cash flow from financing activities _______________________________________
__________________________________ _______________________________________
__________________________________ _______________________________________
__________________________________ _________________________________________
_________________________________ _________________________________________
_______________________________ ___________________________________________
Has Company is a retail company that specializes i...
Bookmark
Has Company is a retail company that specializes in sellingoutdoor camping equipment .The company is considering opening a newstore on October 1,2015.the company president formed a mastercommittee to prepare a master budget for the first three months ofoperation.As budget coordinator,you have been assigned thefollowing tasks.
Required
a&b.October sales are estimated be 250,00 of which 40percent will be cash and 60 percent will be credit.The companyexpects sales to increase at the rate of 8 percent per month .Thecompany expects to collect 100 percent of the accounts receivablegenerated by credit sales in the month following the sale .Preparea sales budget and a schedule of cash receipts.
October November December
Sales Budget ____________ ______________ _____________
Cash Sales ______________ __________________ _________________
Sales on Account ___________ _________________________________
Total budgeted Sales _____________ ___________________________________
schedule on cash Receipts _____________ _____________________________________
Current Cash Sales ____________ ______________________________________
Pus collections from A/R ______________ ________________________________________
Total Collections _______________ _______________________________________
c&d.The cost of goods sold is 60 percent of sales.thecompany desires to maintain a minimum ending inventory equal to 10percent of the next month's cost of goods sold.However,endinginventory of December is expected to be $12,000.the company pays 70percent of accounts payable in the month of purchase and theremaining 30 percent in the following month assume that allpurchases are made on account .Prepare an inventory purchasesbudget and a cash payments budget for inventory purchases(Roundyour answers to the nearest whole dollar).
October November December
Inventory purchase budget ______________________________________ ________________
Purchases ___________________ _________________________________________
Plus or Less desired ending inventory ________________________________ ____________________
Inventory need ____________ _________________________________________
_______________________________________________________________________________________________________
Required purchases on account ___________________________________ ______________________
Schedule of Cash Payments Budget for inventoryPurchases_____________ ______________ __________________
Payments of current month's accounts payables ______________________________ _________________
Payment for prior month's accounts payable ____________________________ _________________
Total budgeted payments for inventory ___________________________ _________________
e&f.Budgeted selling and administrative expenses per monthfollow
Salary expense (fixed) $18,000
sales commissions 5% of sales
Supplies Expense 2 percent of sales
utilities(fixed) $1,400
Depreciation on store fixtures(fixed) $4,000
Rent(fixed) $4,800
Miscellaneous( fixed ) 1,200
The capital expenditures budget indicates that Haas will spend$164000 on October 1 for store fixtures ,which are expected to havea $20,000 salvage value and a three -year 936) month usefullife.
Utilities and Sales commissions are paid the month after theyare incurred ;all other expenses are paid in the month in whichthey are incurred.Prepare a selling and administrative expensesbudget and a cash payments budget for selling and administrativeexpenses .(Round your answers to the nearest whole dollaramount)
October November December
Selling and administrative Expense budget ____________________________ _________________
Salary Expense ______________ _________________________________
Sales Commissions ____________ ____________________________________
Supplies expenses _________ ________________________________
Utilities _____________ __________ ________________
Depreciation on store fixtures
Rent
Miscellaneous
Total S&A EXPENSES
Salary expense
Sales commissions
Supplies expense
utilities
Depreciation on store fixtures
Rent
Miscellaneous
total payments for S&A expenses.
g-HaaS borrows funds in increments of $1,000,and repays them onthe last day of the month.Repayments may be made in any amountavailable .The company also pays its vendors on the last day of themonth .it pays interest of 1 percent per month in cash on the lastday of the month.To be prudent,the company desires to maintain a12,000 cash cushion .prepare a cash budget(Any repayments/shortagewhich should be indicated with a minus sign .Round your answers tonearest whole dollar amount)
Cash Budget
October November December
______________________________________________________________________________
Cash available
________________________________________________________________________________________
Lees:Payments
_______________________________________________________________________________________
_________________________________________________________________________________________
_____________________________________________________________________________________________
_______________________________________________________________________________________________
________________________________________________________________________________________________
Total budgeted payments
Payments minus receipts
____________________________________________________________________________________________
Financing activity
_____________________________________________________________________________________________
_______________________________________________________________________________________________
h.Prepare a pro-forma income statement for the quarter (Roundyour answers to nearest whole dollar amount)
Haas Company
Pro forma income statement
For the Quarter ended December 31,,2015
i.
Prepare a pro forma balance sheet at the end of thequarter9Amounts to be deducted should be indicated by a minussign
Haas Company
Pro Forma Balance Street
As of December 31,2015
Assets _____________ _______________
_________
_________
____________
_____________
____________
_______________
Total assets ________________
Liabilities
___________
____________
_____________
_____________
Stockholders 'equity
___________________
_______________________
Total liabilities and stockholders equity_____________________
j.Prepare a pro forma statement of cash flows for thequarter(Amounts to be deducted should be indicated by a minussign.Round your answers to nearest whole dollar amount.)
Haas Company
Pro Forma Statement of Cash Flows
Cash flows from operating activities ____________________________________________
_________________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
________________________________________________________________________________
Net Cash flows from operating activities ___________________
Cash flows from investing activities_______________________________________________
_______________________________________ ________________________________________
Cash flow from financing activities _______________________________________
__________________________________ _______________________________________
__________________________________ _______________________________________
__________________________________ _________________________________________
_________________________________ _________________________________________
_______________________________ ___________________________________________
Related questions
Camden Company is a retail company that specializes in sellingoutdoor camping equipment. The company is considering opening a newstore on October 1, 2019. The company president formed a planningcommittee to prepare a master budget for the first three months ofoperation. As budget coordinator, you have been assigned thefollowing tasks:
Required
October sales are estimated to be $125,000, of which 40 percentwill be cash and 60 percent will be credit. The company expectssales to increase at the rate of 8 percent per month. Prepare asales budget.
The company expects to collect 100 percent of the accountsreceivable generated by credit sales in the month following thesale. Prepare a schedule of cash receipts.
The cost of goods sold is 60 percent of sales. The companydesires to maintain a minimum ending inventory equal to 10 percentof the next monthâs cost of goods sold. However, ending inventoryof December is expected to be $6,000. Assume that all purchases aremade on the account. Prepare an inventory purchases budget.
The company pays 70 percent of accounts payable in the month ofpurchase and the remaining 30 percent in the following month.Prepare a cash payments budget for inventory purchases.
Budgeted selling and administrative expenses per monthfollow:
| Salary expense(fixed) | $ | 9,000 | |
| Sales commissions | 5 | % of Sales | |
| Supplies Expense | 2 | % of Sales | |
| Utilities (fixed) | $ | 700 | |
| Depreciation on store fixtures(fixed)* | $ | 2,000 | |
| Rent (fixed) | $ | 2,400 | |
| Miscellaneous (fixed) | $ | 600 | |
*The capital expenditures budget indicates that Camden willspend $82,000 on October 1 for store fixtures, which are expectedto have a $10,000 salvage value and a three-year (36-month) usefullife.
Use this information to prepare a selling and administrativeexpenses budget.
Utilities and sales commissions are paid the month after theyare incurred; all other expenses are paid in the month in whichthey are incurred. Prepare a cash payments budget for selling andadministrative expenses.
Camden borrows funds, in increments of $1,000, and repays themon the last day of the month. Repayments may be made in any amountavailable. The company also pays its vendors on the last day of themonth. It pays interest of 1 percent per month in cash on the lastday of the month. To be prudent, the company desires to maintain a$6,000 cash cushion. Prepare a cash budget.
Camden Company is a retail company that specializes in sellingoutdoor camping equipment. The company is considering opening a newstore on October 1, 2019. The company president formed a planningcommittee to prepare a master budget for the first three months ofoperation. As budget coordinator, you have been assigned thefollowing tasks:
Prepare a pro forma income statement for the quarter.
Prepare a pro forma balance sheet at the end of the quarter.
Prepare a pro forma statement of cash flows for the quarter.
