Has Company is a retail company that specializes in selling outdoor camping equipment .The company...
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Accounting
Has Company is a retail company that specializes in selling outdoor camping equipment .The company is considering opening a new store on October 1,2015.the company president formed a master committee to prepare a master budget for the first three months of operation.As budget coordinator,you have been assigned the following tasks.
Required
a&b.October sales are estimated be 250,00 of which 40 percent will be cash and 60 percent will be credit.The company expects sales to increase at the rate of 8 percent per month .The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale .Prepare a sales budget and a schedule of cash receipts.
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.the company desires to maintain a minimum ending inventory equal to 10 percent of the next month's cost of goods sold.However,ending inventory of December is expected to be $12,000.the company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the following month assume that all purchases are made on account .Prepare an inventory purchases budget and a cash payments budget for inventory purchases(Round your answers to the nearest whole dollar).
Required purchases on account ________________ ___________________ ______________________
Schedule of Cash Payments Budget for inventory Purchases_____________ ______________ __________________
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 month follow
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 have a $20,000 salvage value and a three -year 936) month useful life.
Utilities and Sales commissions are paid the month after they are incurred ;all other expenses are paid in the month in which they are incurred.Prepare a selling and administrative expenses budget and a cash payments budget for selling and administrative expenses .(Round your answers to the nearest whole dollar amount)
October November December
Selling and administrative Expense budget _____________ _______________ _________________
g-HaaS borrows funds in increments of $1,000,and repays them on the last day of the month.Repayments may be made in any amount available .The company also pays its vendors on the last day of the month .it pays interest of 1 percent per month in cash on the last day of the month.To be prudent,the company desires to maintain a 12,000 cash cushion .prepare a cash budget(Any repayments/shortage which should be indicated with a minus sign .Round your answers to nearest whole dollar amount)
h.Prepare a pro-forma income statement for the quarter (Round your 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 the quarter9Amounts to be deducted should be indicated by a minus sign
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 the quarter(Amounts to be deducted should be indicated by a minus sign.Round your answers to nearest whole dollar amount.)
Haas Company
Pro Forma Statement of Cash Flows
Cash flows from operating activities ______________________ ______________________
