1 Formulas shall be used for all calculations including the

1) Formulas shall be used for all calculations including the linking of data from the schedules to the financial statements 2) Appropriate formatting including titles, borders, numerical structure, etc. shall be used in all applicable situations Required 1) Using the data from schedules provided a) Prepare a cash budget for the quarter ending September 30, 2016 using tab \"Cash Budget\" b) Prepare a budgeted income statement for the quarter ending September 30, 2016 using tab \"Income Statement c) Prepare a budgeted balance sheet as at September 30, 2016 using tab \"Balance Sheet\"

Solution

a. Cash budget:

Cash budget:

July

August

September

Beginning cash balance

           10,000

           13,850

           19,640

Add: Cash collection from sales

           25,200

           25,450

           24,580

Total cash available

           35,200

           39,300

           44,220

Less: Disbursements

Purchase for inventory

         (14,550)

         (12,960)

         (12,015)

Sales and administrative expenses

           (4,700)

           (4,700)

           (4,700)

Commission paid

           (2,100)

           (2,000)

           (2,880)

Total disbursements

         (21,350)

         (19,660)

         (19,595)

Excess cash / (deficiency)

           13,850

           19,640

           24,625

Ending cash balance

           13,850

           19,640

           24,625

Budgeted income statement:

Income statement:

Sales

           69,600

Less: cost of goods sold

           39,525

Gross profit

           30,075

Less: operating expenses

Sales commission

             6,980

Sales and administrative expenses

           15,000

Net income before taxes

             8,095

Budgeted balance sheet:

Balance sheet

Assets:

Cash

           24,625

Accounts receivable (34,700-16,500-18,200+12,750+16,320)

           29,070

Inventory

             3,675

Total current assets

           57,370

Property plant and equipment

           12,000

Less: Accumulated depreciation (7,200+900)

           (8,100)

             3,900

Total assets

           61,270

Liabilities and equity:

Accounts payable

           14,850

Common stock

                 100

Retained earnings (17,875+8,095+20,350revenue-costs in trail balance)

           46,320

           61,270

Cash budget:
	July	August	September
Beginning cash balance	10,000	13,850	19,640
Add: Cash collection from sales	25,200	25,450	24,580
Total cash available	35,200	39,300	44,220
Less: Disbursements
Purchase for inventory	(14,550)	(12,960)	(12,015)
Sales and administrative expenses	(4,700)	(4,700)	(4,700)
Commission paid	(2,100)	(2,000)	(2,880)
Total disbursements	(21,350)	(19,660)	(19,595)
Excess cash / (deficiency)	13,850	19,640	24,625
Ending cash balance	13,850	19,640	24,625