Hoosier Inc. Budget Exercise - Version C Hoosier Inc. sells basketballs. The following is the trial balance for Hoosier Inc. as of 9/30/2023. * Budgeted sales for October total $240,000, consisting of $50,000 cash and $190,000 on credit. * The company expects sales to increase by 5% each month. * The mix of cash v. credit sales is not expected to change from month to month. * HALF of the credit sales are collected in the following month. The remaining sales are collected 2 months later. * $35,000 of the AR at 9/30 was collected in October, the remaining amount was collected in November. Prepare a sales budget and schedule of cash receipts for October, November, and December. What is total revenue for the fourth quarter (Q4)? What is the accounts receivable balance at 12/31/2023 ? \begin{tabular}{|} \hline \\ \hline \end{tabular} - Cost of goods sold for October is expected to be $90,000. - Cost of goods sold is expected to increase by 8% each month. * Cost of goods sold for October is expected to be $90,000. - Cost of goods sold is expected to increase by 8% each month. * The company needs to maintain a minimum ending inventory balance equal to 10% of the current month's cost of goods sold. * All inventory is purchased on account. 60% of the accounts payable is paid in the month that the purchase occurs; the remaining amount owed is paid the next month. Prepare a monthly purchases budget and schedule of cash navments for 4 What is budgeted coGS for Q4? What is the budgeted ending inventory at 12/31/2023 ? What is the budgeted accounts payable balance at 12/31/2023? \begin{tabular}{|l|} \hline \\ \hline \\ \hline \end{tabular} What is budgeted COGS for Q4? What is the budgeted ending inventory at 12/31/2023 ? What is the budgeted accounts payable balance at 12/31/2023? Prepare a monthly selling and administrative expenses budget for the 4 th quarter. * Utilities and salaries are paid in the month following the one in which the expense is incurred. - October rent expense was paid in October. In November $8,000 rent was prepaid for November and December rent. (No additional rent was paid in December.) - Other expenses are paid in cash in the month in which they are incurred. - Assume sales commissions, supplies expense, and utilities increase 5% each month. All other costs S\&A Cash Payments Budget Sales commissions Supplies paid Utilities paid Depreciation on equipment Salaries paid Rent paid Advertising paid Total What is total depreciation expense for Q4? What is the ending accum. depreciation at 12/31/2023? What is total budgeted S\&A expenses for Q4? What is total cash paid for S\&A for Q4? What is utilities payable at 12/31/2023 ? What is salaries payable at 12/31/2023 ? \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} Fill in the missing blanks on the Pro Forma Statements below. No dividends were declared. Hoosier Inc. Pro Forma Income Statement Quarter ended 12/31/2023 Sales revenue COGS Gross margin Operating expenses Net Income Assets: Cash Accounts receivable Inventory Store equipment Accumulated depreciation Net book value of equipment Total assets From sales budget From purchases budget subtotal From S\&A budget Hoosier Inc. Pro Forma Balance Sheet 12/31/2023 From sales budget From purchases budget From beginning balance sheet From S\&A budget subtotal subtotal Liabilities: Accounts payable 42,301 Utilities payable From purchases budget Salaries payable From S&A budget Stockholders' Equity: From S\&A budget Common stock Retained earnings Total liabilities \& equity From beginning balance sheet Beg RE + NI Beg RE +Net Income -Dividends = Ending RE Does Hoosier Inc. need to borrow money for October? (a) October from beginning Balance sheet (b) From cash receipts budget (c) From cash payments budget (d) From S& A payments budget (e) Ending balance agrees to pro forma balance sheet