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Title: Quick Study 22-25
QA_Ori:
SCORA INC.
Selling Expense Budget
For January, February, and March
January February March
Budgeted sales (from QS 22-23) $60,000 $100,000 $80,000
Title: Quick Study 22-26
QA_Ori:
MESSERS COMPANY
Cash Budget
For Month Ended February 28
Beginning cash balance $ 20,000
Cash receipts 75,000
Based on the cash budget above, the company must borrow $10,250 during February
to maintain a $5,000 cash balance.
1.
(in € millions)
2.
Title: Exercise 22-1
QA_Ori:
KAYAK COMPANY
Cash Budget
For January, February, and March
January February March
Beginning cash balance $ 30,000 $ 30 ,000 $ 69,294
Cash receipts 525,000 400,000 450,000
Total cash available 555,000 430,000 519,294
Title: Exercise 22-2
QA_Ori:
1. Merchandise Purchases Budget
Note: Shaded numbers represent known information provided in the exercise.
Walker Company
Merchandise Purchases Budget
For July, August, and September
July August September
Next month’s budgeted sales 315,000 270,000 200,000 (10
)
Ratio of inventory to next month sales x 15% (9) x 15% (9) x 15% (9)
The following notes (1) through (10) provide supporting calculations and explanations.
Notes: (1) September required units
(2) September beginning Inventory
(3) September Beginning Inventory = August Ending Inventory
(4) August required units
(5) August beginning inventory
(6) August Beginning Inventory = July Ending Inventory
(7) July required units
(8) July Beginning Inventory
(9) Percent of Sales to be held as Ending Inventory
(10) October expected sales
ACCO COMPANY
Cash Budget
For Month Ended July 31
Beginning cash balance $ 50,000
Cash receipts from sales (note 1) 1,364,000
Total cash available $1,414,000
Supporting calculations
(1) Cash receipts in July from sales
(2) Cash disbursements in July for merchandise
Title: Exercise 22-4
QA_Ori:
ACCO COMPANY
Budgeted Income Statement
For Month Ended July 31
Sales (from Exercise 22-3) $1,400,000
Cost of goods sold (note 1) 770,000
ACCO COMPANY
Budgeted Balance Sheet
As of July 31
ASSETS
Cash (from Exercise 22-3) $ 122,400
Accounts receivable (note 1) 1,220,000
Inventory (given) 60,000
Supporting calculations
(1) Accounts receivable
June sales (20% x $1,200,000) $ 240,000
(2) Accumulated depreciation
(3) Accounts payable
Purchases $ 750,000
(4) Retained earnings
Title: Exercise 22-5
QA_Ori:
Preliminary calculations (sales, cost of sales, beginning and ending inventory)
August September October November
Sales $325,000 $ 320,000 $250,000 $310,000
Cost to sales percent x 60% x 60% x 60% x 60%
Merchandise purchases budgets (* denotes from preliminary calculations)
August September October
Budgeted ending inventory (*) $ 38,400 $ 30,000 $ 37,200
Add budgeted cost of goods sold (*) 195,000 192,000 150,000
Cash payments for purchases (on accounts) in October
Dollars Percent Paid
For purchases from August $194,400 15% $ 29,160
Title: Exercise 22-6
QA_Ori:
1. Budgeted merchandise purchases
June July August
2. Budgeted cost of goods sold
June July August
Beginning inventory $ 250,000 $ 400,000 $ 300,000
Title: Exercise 22-7
QA_Ori:
1.
Preliminary calculations (sales, cost of sales, beginning inventory)
July August Septemb
er
October Novemb
er
Budgeted sales $350,0
00
$290,00
0
$320,000 $275,000 $265,000
49,000
40,600
Budgeted merchandise purchases
July August September October
Budgeted ending inventory $ 40,600 $ 44,800 $ 38,500 $ 37,100
2.
Budgeted payments on accounts payable in September
Purchases Percent Paid Dollars Paid
For purchases from September $217,700 25% $ 54,425
Budgeted payments on accounts payable in October
Purchases Percent Paid Dollars Paid
For purchases from October $191,100 25% $ 47,775
3.
Budgeted balance of accounts payable at the end of September
Purchases Percent Unpaid Dollars Unpaid
Budgeted balance of accounts payable at the end of October
Purchases Percent Unpaid Dollars Unpaid
3.
Budgeted balance of accounts payable at the end of September
Purchases Percent Unpaid Dollars Unpaid
Budgeted balance of accounts payable at the end of October
Purchases Percent Unpaid Dollars Unpaid
From purchases in October $191,10
0
75% $143,325
Title: Exercise 22-8
QA_Ori:
ELECTRO COMPANY
Production Budget
Second and Third Quarters
Second Third
Quarter Quarter
Budgeted ending inventories
Title: Exercise 22-9
QA_Ori:
ELECTRO COMPANY
Direct Materials Budget
Second Quarter
Units to be produced (from Exercise 22-8) 480,000
Materials requirement per unit x 0.80
Title: Exercise 22-10
QA_Ori:
ELECTRO COMPANY
Direct Labor Budget
Second Quarter
Units to be produced (from Exercise 22-8) 480,000
Title: Exercise 22-11
QA_Ori:
HECTOR COMPANY
Budgeted Cash Disbursements
For August and September
August Sept.
Payments for merchandise* $14,400 $19,200
*Equals prior month’s purchases. Note that depreciation expense is excluded since it is
a non-cash expense.
