PROJECT A - Case 9-30

Student Name:

Nykizza Hemby
EARRINGS UNLIMITED
SALES BUDGET
FOR THE THREE MONTHS ENDING JUNE 30

SALES BUDGET:
Budgeted unit sales
Selling price per unit
Total Sales

$
$

April
65,000
10
650,000

SCHEDULE OF EXPECTED CASH COLLECTIONS:

April
February sales
$
26,000
March sales
$
280,000
April sales
$
130,000
May sales
June sales
Total Cash Collections
$
436,000

May
100,000
$
10
$ 1,000,000

$
$

May
$
$
$

40,000
455,000
200,000

695,000

May
100,000
20,000
120,000
40,000
80,000
320,000

June
50,000
10
500,000

June

Quarter
215,000
$
10
$ 2,150,000

$
$
$
$

65,000
700,000
100,000
865,000

Quarter
26,000
320,000
650,000
900,000
100,000
1,996,000

June
50,000
12,000
62,000
20,000
42,000
168,000

Quarter
215,000
72,000
287,000
86,000
201,000
$
804,000

MERCHANDISE PURCHASES BUDGET:

Budgeted unit sales
Add desired ending inventory
Total needs
Less beginning inventory
Required purchases
Cost of purchases @ $4 per unit

April
65,000
40,000
105,000
26,000
79,000
316,000

BUDGETED CASH DISBURSEMENTS FOR MERCHANDISE PURCHASES:

160,000
84,000
244,000

$
$
$
$
$

Quarter
100,000
316,000
320,000
84,000
820,000

EARRINGS UNLIMITED
CASH BUDGET
FOR THE THREE MONTHS ENDING JUNE 30
April
May
June
$
74,000
$
50,000
$
50,000
Cash balance
$
436,000 $
695,000 $
865,000
Add collections from customers
Total cash available
$
510,000 $
745,000 $
915,000

$
$
$

Quarter
174,000
1,996,000
2,170,000

Less Disbursements
Merchandise purchases
Advertising
Rent
Salaries
Commissions
Utilities
Equipment purchases
Dividends paid
Total Disbursements

820,000
600,000
54,000
318,000
86,000
21,000
56,000
15,000
1,970,000

200,000

Accounts payable
April purchases
May purchases
June purchases
Total cash payments

Excess (deficiency) of receipts

over disbursements
Financing:
Borrowings
Repayments
Interest
Total financing
Cash balance, ending

$
$

April
100,000
158,000

258,000

$
$
$
$
$
$

258,000
200,000
18,000
106,000
26,000
7,000

$
$

15,000
630,000

$
$

May
$
$

158,000
160,000

318,000

June

$
$
$

$
$
$
$
$
$
$

318,000
200,000
18,000
106,000
40,000
7,000
16,000

$
$
$
$
$
$
$

244,000
200,000
18,000
106,000
20,000
7,000
40,000

705,000

635,000

$
$
$
$
$
$
$
$
$

(120,000) $

40,000

280,000

170,000

10,000
$

170,000

10,000

50,000

50,000

$
(180,000) $
(5,300)
(185,300) $
94,700

180,000
(180,000)
(5,300)
(5,300)
94,700

EARRINGS UNLIMITED
BUDGETED INCOME STATEMENT
FOR THE THREE MONTHS ENDED JUNE 30
Sales
Variable expenses:
Cost of goods sold
Commissions
Contribution Margin
Fixed expenses:
Advertising
Rent
Salaries
Utilities
Insurance
Depreciation
Net operating income
Interest expense
Net income

$
$

860,000
86,000

$
$
$
$
$
$

600,000
54,000
318,000
21,000
9,000
42,000

2,150,000

$
$

946,000
1,204,000

$
$
$
$

1,044,000
160,000
(5,300)
154,700

$
$
$
$
$
$

94,700
500,000
48,000
12,000
964,000
1,618,700

EARRINGS UNLIMITED
BUDGETED BALANCE SHEET
JUNE 30
Assets:
Cash
Accounts receivable (see below)
Inventory
Prepaid insurance
Property and equipment, net
Total assets

Liabilities and Stockholders' Equity

Accounts payable, purchases

Dividends payable
Capital stock
Retained earnings (see below)
Total liabilities and stockholders' equity

$
$
$
$
$

84,000
15,000
800,000
719,700
1,618,700

Accounts receivable at June 30:

May sales x ?%
June sales x ?%
Total

$
$
$

100,000
400,000
500,000

Retained earnings at June 30:

Balance, March 31
Add net income
Total
Less dividends declared
Balance, June 30

$
$
$
$
$

580,000
154,700
734,700
15,000
719,700