A

MASTER
Master Budget

2
3
4
5

Data Section

6
7
8
9
10
11
12
13

Actual and Budgeted Unit Sales

April
May
June
July
August
September

1,500
1,000
1,600
1,400
1,500
1,200

14
15
16
17
18
19
20

Balance Sheet, May 31, 2001

Cash
Accounts receivable
Merchandise inventory
Fixed assets (net)
Total assets

$8,000
107,800
52,800
130,000
$298,600

21
22
23
24

Accounts payable (merchandise)

Owner's equity
Total liabilities & equity

$74,800
223,800
$298,600

25
26
27
28
29
30
31
32
33
34
35
36
37
38
39

Other Data
Average selling price
Average purchase cost per unit
Desired ending inventory
(% of next month's unit sales)
Collections from customers:
Collected in month of sale
Collected in month after sale
Collected two months after sale
Projected cash payments:
Variable expenses
Fixed expenses (per month)
Depreciation per month

$98
$55
60%
20%
60%
20%
30% of sales
$10,000
$1,000

Answer Section

40
41

Sales Budget
Units

June
FORMULA1

July
1,400

Dollars

FORMULA2

137,200

Unit Purchases Budget

Desired ending inventory
Current month's unit sales
Total units needed
Beginning inventory
Purchases (units)

June
FORMULA3
FORMULA4
FORMULA5
FORMULA6
FORMULA7

900
1,400
2,300
FORMULA3
#VALUE!

Purchases (dollars)

FORMULA8

#VALUE!

42
43
44
45
46
47
48
49
50
51
52
53

July

54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80

Cash Budget
Cash balance, beginning
Cash receipts:
Collections from customers:
From April sales
From May sales
From June sales
From July sales
From August sales
Total cash available
Cash disbursements:
Merchandise
Variable expenses
Fixed expenses
Interest paid
Total disbursements
Cash balance before financing
Less: Desired ending balance
Excess (deficit) of cash over needs
Financing
Borrowing
Repayment
Total effects of financing

June
$8,000

FORMULA9
FORMULA10
FORMULA12

$8,000

July
$8,000

FORMULA11
94,080
27,440
$129,520

FORMULA13 FORMULA8
FORMULA14
41,160
FORMULA15
10,000
0
0
$0
$51,160
$8,000
$78,360
8,000
8,000
$0
$70,360
$0
0
$0

$0
0
$0

A
81
82

Cash balance, ending

$8,000

$78,360

A
83
84
85
86
87
88
89
90
91
92
93
94
95

Forecasted Income Statement

For Quarter Ended August 31, 2001
Sales
Cost of goods sold
Gross profit
Expenses:
Variable expenses
Fixed expenses
Depreciation expense
Interest expense
Total expenses
Net income

96
97
98
99
100
101
102
103
104
105

Forecasted Balance Sheet

August 31, 2001
Assets:
Cash
Accounts receivable
Merchandise inventory
Fixed assets (net)
Total assets

106
107
108
109
110
111
112

Liabilities & equity:

Accounts payable
Loans payable
Owner's equity
Total liabilities & equity

D
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39

D
40
41
42
43

August
1,500

44
45

147,000

46
47
48
49
50
51
52
53

August
720
1,500
2,220
900
1,320

54
55

$72,600

56
57
58
59

August
$78,360

60
61
62
63
64
65
66
67

31,360
82,320
29,400
$221,440

68
69
70
71
72
73
74
75
76

#VALUE!
44,100
10,000
0
#VALUE!
#VALUE!
#VALUE!
#VALUE!

77
78
79
80

#VALUE!
#VALUE!
#VALUE!

D
81
82

#VALUE!

D
83
84
85

FORMULA16
87 FORMULA17
88 FORMULA18
86

89
90
91
92
93
94
95

FORMULA19
FORMULA20
FORMULA21
FORMULA22
$0
#VALUE!

96
97
98
99
100
101
102
103
104
105

FORMULA23
FORMULA24
FORMULA25
FORMULA26
$0

106
107

FORMULA27
109
#VALUE!
110 FORMULA28
111
#VALUE!
108

112

Sales and Net Income Possibilities

800000
700000
600000
500000

Sales

400000

Net Income

300000
200000
100000
0
-100000
0%

50%

100%

150%

Percent of Expected Volume

Percent
0%
50%
100%
150%
200%

Chart
Data Table
Sales
156800
298900
441000
583100
725200

NI
-11424
8296
27957
47228
66498

200%

come