(10,0004,500)$4.50=$24,75 - $30,000 is still budgeted to be raised evenly throughout the year from corporate and individual donors. - A minimum cash balance of $10,000 is still required at the end of each quarter. Budgeted interest on all borrowings is now five percent per year. The operating loan is advanced or repaid in increments of $10,000. Any funds are advanced at the start of the quarter. Any funds are repaid at the end of the quarter. Interest will be paid in cash at the end of each month based on the number of days that the related loan is outstanding. Required: (You may wish to copy the worksheet and financial statements into spreadsheet software.) i. Complete the second-quarter master budget worksheet on the following page. ii. Complete the second-quarter budgeted financial statements (see the following template). Assume that only an operating fund is used. iii. Interpret the results in terms of cash flow needs. Required: (30 marks) a. Complete the third-quarter master budget worksheet. (18 marks) b. Prepare the third-quarter budgeted financial statements. Prepare the statement of operations in contribution margin format. (8 marks) c. Interpret the results. Ratio analysis is not necessary. (4 marks) - Telephone and other administrative expenses will continue at an estimated $500 per month. - Total payments on non-current borrowings during the second quarter will be as follows: Payments$5,281Interest$798Principal$4,483 - Budgeted amortization remains unchanged. R 6 / Budgeting v. 2.0 175 - Delivery van operating costs are now estimated at $2.30 per hamper. These costs will continue to be paid in cash at the end of each month. - Salaries and benefits will remain as budgeted in the first quarter. All remuneration will be paid in cash at the end of each month. - An annual golf tournament will be held in June to raise donations estimated at $100,000. After deducting fundraising expenses, the event is expected to contribute $60,000 net revenue. Review the budget information and financial statements for the Northern Alberta Foodbank Society in this chapter. Assume the following budgeted information for the second quarter, the three-month period ended June 30 , 2022: - The amount billed to the government for the first quarter will be received in cash on May 15. - Accounts payable at March 31 were paid in full in May. - The provincial government will continue to reimburse the society $11 for each hamper delivered in each quarter. Estimated hamper deliveries for the second quarter are now 10,000, rather than the 15,000 originally projected. - The estimated fair value of donated food in each hamper remains at $35. - Average estimated cost of purchased food per hamper is now $4.50. - Only 40 percent of the required purchases will need to be paid in cash by the end of the quarter; the remainder owing will be paid in cash the following quarter. - To meet anticipated demand, the society now only needs 10 percent of the hampers that will be delivered each quarter to be on hand at the beginning of that quarter. - 12,000 hampers are budgeted for delivery in the three months ending September 30 . - The warehouse will continue to be leased for $1,500 per month including utilities and taxes
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