Baird Company is aretail company that specializes in selling outdoor campingequipment. The company is considering opening a new store onOctober 1, 2019. The company president formed a planning committeeto prepare a master budget for the first three months of operation.As budget coordinator, you have been assigned the followingtasks:
Problem 14-23 Part 1
Required
October sales areestimated to be $300,000, of which 40 percent will be cash and 60percent will be credit. The company expects sales to increase atthe rate of 20 percent per month. Prepare a sales budget.
The company expects tocollect 100 percent of the accounts receivable generated by creditsales in the month following the sale. Prepare a schedule of cashreceipts.
The cost of goods soldis 70 percent of sales. The company desires to maintain a minimumending inventory equal to 20 percent of the next monthâs cost ofgoods sold. However, ending inventory of December is expected to be$12,100. Assume that all purchases are made on account. Prepare aninventory purchases budget.
The company pays 80percent of accounts payable in the month of purchase and theremaining 20 percent in the following month. Prepare a cashpayments budget for inventory purchases.
Budgeted selling andadministrative expenses per month follow:
Salary expense(fixed) $ 18,100 Salescommissions 4 % of Sales Suppliesexpense 2 % of Sales Utilities(fixed) $ 1,500 Depreciation onstore fixtures (fixed)* $ 4,100 Rent(fixed) $ 4,900 Miscellaneous(fixed) $ 1,300
*The capital expenditures budget indicates that Baird will spend$119,400 on October 1 for store fixtures, which are expected tohave a $21,000 salvage value and a two-year (24-month) usefullife.
Use this informationto prepare a selling and administrative expenses budget.
Utilities and salescommissions are paid the month after they are incurred; all otherexpenses are paid in the month in which they are incurred. Preparea cash payments budget for selling and administrative expenses.
Baird borrows funds, in increments of $1,000, and repaysthem on the last day of the month. Repayments may be made in anyamount available. The company also pays its vendors on the last dayof the month. It pays interest of 2 percent per month in cash onthe last day of the month. To be prudent, the company desires tomaintain a $13,000 cash cushion. Prepare a cashbudget.
Baird borrows funds,in increments of $1,000, and repays them on the last day of themonth. Repayments may be made in any amount available. The companyalso pays its vendors on the last day of the month. It paysinterest of 2 percent per month in cash on the last day of themonth. To be prudent, the company desires to maintain a $13,000cash cushion. Prepare a cash budget. (Any repayments/shortage whichshould be indicated with a minus sign.)
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Cash Budget October November December Beginning cash balanceselected answer correct $53,000selected answer incorrect $(286,436) Add: Cash receiptsselected answer correct 120,000selected answer correct 264,000selected answer incorrect 316,800selected answer incorrect Cash available 173,000 264,000 30,364 Less: Payments For inventory purchasesselected answer correct 127,680selected answer incorrect 225,456selected answer incorrect 329,008selected answer incorrect For selling and administrative expensesselected answer correct 30,300selected answer correct 45,000selected answer correct 48,840selected answer correct Purchase of store fixturesselected answer correct 119,400selected answer correct not attempted not attempted not attempted 277,380selected answer incorrect 270,456selected answer incorrect 377,848selected answer incorrect Borrowing (repayment)selected answer incorrect (104,308)selected answer incorrect 7,164selected answer incorrect (47,244)selected answer incorrect Total budgeted payments 450,452 548,076 708,452 Payments minus receipts not attempted (277,452) (284,076) (678,088) Financing activity Interest expenseselected answer incorrect not attempted (2,360)selected answer incorrect (11,360)selected answer incorrect Ending cash balanceselected answer correct $(277,452) $(286,436) $(689,448)
The company pays 80percent of accounts payable in the month of purchase and theremaining 20 percent in the following month. Prepare a cashpayments budget for inventory purchases. (Round your final answersto the nearest whole dollar amounts.)
October November December Schedule of Cash Payments Budgetfor Inventory Purchases Payment of current month's accounts payable $264,000selected answer incorrect $262,080selected answer incorrect $254,020selected answer incorrect Payment for prior month'saccounts payable not attempted 31,920selected answer incorrect 48,384selected answer incorrect Total budgeted payments forinventory $264,000 $294,000 $302,404
Baird Company is aretail company that specializes in selling outdoor campingequipment. The company is considering opening a new store onOctober 1, 2019. The company president formed a planning committeeto prepare a master budget for the first three months of operation.As budget coordinator, you have been assigned the followingtasks:
Problem 14-23 Part 1
Required
October sales areestimated to be $300,000, of which 40 percent will be cash and 60percent will be credit. The company expects sales to increase atthe rate of 20 percent per month. Prepare a sales budget.
The company expects tocollect 100 percent of the accounts receivable generated by creditsales in the month following the sale. Prepare a schedule of cashreceipts.
The cost of goods soldis 70 percent of sales. The company desires to maintain a minimumending inventory equal to 20 percent of the next monthâs cost ofgoods sold. However, ending inventory of December is expected to be$12,100. Assume that all purchases are made on account. Prepare aninventory purchases budget.
The company pays 80percent of accounts payable in the month of purchase and theremaining 20 percent in the following month. Prepare a cashpayments budget for inventory purchases.
Budgeted selling andadministrative expenses per month follow:
| Salary expense(fixed) | $ | 18,100 | |
| Salescommissions | 4 | % of Sales | |
| Suppliesexpense | 2 | % of Sales | |
| Utilities(fixed) | $ | 1,500 | |
| Depreciation onstore fixtures (fixed)* | $ | 4,100 | |
| Rent(fixed) | $ | 4,900 | |
| Miscellaneous(fixed) | $ | 1,300 | |
*The capital expenditures budget indicates that Baird will spend$119,400 on October 1 for store fixtures, which are expected tohave a $21,000 salvage value and a two-year (24-month) usefullife.
Use this informationto prepare a selling and administrative expenses budget.
Utilities and salescommissions are paid the month after they are incurred; all otherexpenses are paid in the month in which they are incurred. Preparea cash payments budget for selling and administrative expenses.
Baird borrows funds, in increments of $1,000, and repaysthem on the last day of the month. Repayments may be made in anyamount available. The company also pays its vendors on the last dayof the month. It pays interest of 2 percent per month in cash onthe last day of the month. To be prudent, the company desires tomaintain a $13,000 cash cushion. Prepare a cashbudget.
Baird borrows funds,in increments of $1,000, and repays them on the last day of themonth. Repayments may be made in any amount available. The companyalso pays its vendors on the last day of the month. It paysinterest of 2 percent per month in cash on the last day of themonth. To be prudent, the company desires to maintain a $13,000cash cushion. Prepare a cash budget. (Any repayments/shortage whichshould be indicated with a minus sign.)
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The company pays 80percent of accounts payable in the month of purchase and theremaining 20 percent in the following month. Prepare a cashpayments budget for inventory purchases. (Round your final answersto the nearest whole dollar amounts.)
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Related questions
Baird Company is aretail company that specializes in selling outdoor campingequipment. The company is considering opening a new store onOctober 1, 2019. The company president formed a planning committeeto prepare a master budget for the first three months of operation.As budget coordinator, you have been assigned the followingtasks:
October sales areestimated to be $300,000, of which 40 percent will be cash and 60percent will be credit. The company expects sales to increase atthe rate of 20 percent per month. Prepare a sales budget.
The company expects tocollect 100 percent of the accounts receivable generated by creditsales in the month following the sale. Prepare a schedule of cashreceipts.
The cost of goods soldis 70 percent of sales. The company desires to maintain a minimumending inventory equal to 20 percent of the next monthâs cost ofgoods sold. However, ending inventory of December is expected to be$12,100. Assume that all purchases are made on account. Prepare aninventory purchases budget.
The company pays 80percent of accounts payable in the month of purchase and theremaining 20 percent in the following month. Prepare a cashpayments budget for inventory purchases.
Budgeted selling andadministrative expenses per month follow:
Problem 14-23 Part 2
Prepare a pro formaincome statement for the quarter.
Prepare a pro formabalance sheet at the end of the quarter.
Prepare a pro formastatement of cash flows for thequarter.
Prepare a pro formaincome statement for the quarter.
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Prepare a pro formabalance sheet at the end of the quarter. (Amounts to be deductedshould be indicated by a minus sign.)
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Prepare a pro formastatement of cash flows for the quarter. (Amounts to be deductedshould be indicated by a minus sign.)
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Baird Company is a retail company that specializes in sellingoutdoor camping equipment. The company is considering opening a newstore on October 1, 2019. The company president formed a planningcommittee to prepare a master budget for the first three months ofoperation. As budget coordinator, you have been assigned thefollowing tasks:
Required
October sales areestimated to be $300,000, of which 40 percent will be cash and 60percent will be credit. The company expects sales to increase atthe rate of 20 percent per month. Prepare a sales budget.
The company expects tocollect 100 percent of the accounts receivable generated by creditsales in the month following the sale. Prepare a schedule of cashreceipts.
The cost of goods soldis 70 percent of sales. The company desires to maintain a minimumending inventory equal to 20 percent of the next monthâs cost ofgoods sold. However, ending inventory of December is expected to be$12,100. Assume that all purchases are made on account. Prepare aninventory purchases budget.
The company pays 80percent of accounts payable in the month of purchase and theremaining 20 percent in the following month. Prepare a cashpayments budget for inventory purchases.
Budgeted selling andadministrative expenses per month follow:
| Salary expense(fixed) | $ | 18,100 | |
| Salescommissions | 4 | % of Sales | |
| Suppliesexpense | 2 | % of Sales | |
| Utilities(fixed) | $ | 1,500 | |
| Depreciation onstore fixtures (fixed)* | $ | 4,100 | |
| Rent(fixed) | $ | 4,900 | |
| Miscellaneous(fixed) | $ | 1,300 | |
*The capital expenditures budget indicates that Baird will spend$119,400 on October 1 for store fixtures, which are expected tohave a $21,000 salvage value and a two-year (24-month) usefullife.
Use this informationto prepare a selling and administrative expenses budget.
Utilities and salescommissions are paid the month after they are incurred; all otherexpenses are paid in the month in which they are incurred. Preparea cash payments budget for selling and administrative expenses.
Baird borrows funds,in increments of $1,000, and repays them on the last day of themonth. Repayments may be made in any amount available. The companyalso pays its vendors on the last day of the month. It paysinterest of 2 percent per month in cash on the last day of themonth. To be prudent, the company desires to maintain a $13,000cash cushion. Prepare a cash budget.
October sales areestimated to be $300,000, of which 40 percent will be cash and 60percent will be credit. The company expects sales to increase atthe rate of 20 percent per month. Prepare a sales budget.
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The company expects tocollect 100 percent of the accounts receivable generated by creditsales in the month following the sale. Prepare a schedule of cashreceipts.
|
The cost of goods soldis 70 percent of sales. The company desires to maintain a minimumending inventory equal to 20 percent of the next monthâs cost ofgoods sold. However, ending inventory of December is expected to be$12,100. Assume that all purchases are made on account. Prepare aninventory purchases budget.
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The company pays 80percent of accounts payable in the month of purchase and theremaining 20 percent in the following month. Prepare a cashpayments budget for inventory purchases. (Round your final answersto the nearest whole dollar amounts.)
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Prepare a selling andadministrative expenses budget.
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Utilities and salescommissions are paid the month after they are incurred; all otherexpenses are paid in the month in which they are incurred. Preparea cash payments budget for selling and administrative expenses.
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Baird borrows funds,in increments of $1,000, and repays them on the last day of themonth. Repayments may be made in any amount available. The companyalso pays its vendors on the last day of the month. It paysinterest of 2 percent per month in cash on the last day of themonth. To be prudent, the company desires to maintain a $13,000cash cushion. Prepare a cash budget. (Any repayments/shortage whichshould be indicated with a minus sign.)
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October sales areestimated to be $300,000, of which 40 percent will be cash and 60percent will be credit. The company expects sales to increase atthe rate of 20 percent per month. Prepare a sales budget.
The company expects tocollect 100 percent of the accounts receivable generated by creditsales in the month following the sale. Prepare a schedule of cashreceipts.
The cost of goods soldis 70 percent of sales. The company desires to maintain a minimumending inventory equal to 20 percent of the next monthâs cost ofgoods sold. However, ending inventory of December is expected to be$12,100. Assume that all purchases are made on account. Prepare aninventory purchases budget.
The company pays 80percent of accounts payable in the month of purchase and theremaining 20 percent in the following month. Prepare a cashpayments budget for inventory purchases.
Budgeted selling andadministrative expenses per month follow:
| Salary expense(fixed) | $ | 18,100 | |
| Salescommissions | 4 | % of Sales | |
| Suppliesexpense | 2 | % of Sales | |
| Utilities(fixed) | $ | 1,500 | |
| Depreciation onstore fixtures (fixed)* | $ | 4,100 | |
| Rent(fixed) | $ | 4,900 | |
| Miscellaneous(fixed) | $ | 1,300 | |
*The capital expenditures budget indicates that Baird will spend$119,400 on October 1 for store fixtures, which are expected tohave a $21,000 salvage value and a two-year (24-month) usefullife.
Prepare a pro formaincome statement for the quarter.
Prepare a pro formabalance sheet at the end of the quarter.
Prepare a pro forma statement of cash flows for thequarter.
Required J
Prepare a pro formastatement of cash flows for the quarter. (Amounts to be deductedshould be indicated by a minus sign.)
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Prepare a pro formabalance sheet at the end of the quarter. (Amounts to be deductedshould be indicated by a minus sign.)
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Required H
Required I
Required J
Prepare a pro formaincome statement for the quarter.
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