You are the accountant tasked with creating the master budget for SRS Educational Supply Company….
I have completed the following budgets and need to complete the quarter end for Sept Budget Income statement and balance sheet. please help, I am unsure of which figures to use
Sales Budget Jul August September Quarter Sales Schedule of Cash Collections July August September Quarter June sales (A/R FrInventory Purchase Budget August September October $6,000,000 $ 910,000 475,000 385,000 Sales Cost of Merchandise as % of SalSelling and Administrative Budget July $600,000 $ 910,000 475,000 August September Quarter Sales Shipping as a Percentage ofCash Budget August September Quarter July 35,000 Cash Balance: Beginning Add Cash Collections (From Sales Budget) Total cashSRS Educational Supplies Company Budgeted Income Statement For the Quarter Ended September 30 Sales Cost of goods Sold From s
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Inventory Purchase Budget August September October $6,000,000 $ 910,000 475,000 385,000 Sales Cost of Merchandise as % of Sales Budgeted Cost of Merchandise Sold 45% 45% 45% 45% $ 409,500 213,750 173,250 Following Month’s COGS Desired Ending Inventory 96 Desired Ending Inventory Dollars 20% 20% 20% 81900 42.750 3 34,650 Budgeted Cost of Merchandise Sold Plus Desired Ending Inventory Total Inventory Needs Less Beginning Inventory0 81,900 Required Purchases 270,000 409,500 213,750 81,900 42750 34,650 351,900 452,250 248,400 42,750 351,900 $ 370,350205,650 Schedule of Expected Cash Disbursements – Purchases JulyAugstSeptember Quarter June Purchases (A/P From Balance She $ July Purchases August Purchases September Purchases Total Disbursements $ 175.950 $ 351,900 $ 185,175 $ 185,175 370,350 102,825 102,825 175.950 Cost of Merchandise Sold for the Quarter Ending Inventory at the end of the Quarter Ending A/P at the end of the Quarter S893,250 S 34,650 S102,825
Cash Budget August September Quarter July 35,000 Cash Balance: Beginning Add Cash Collections (From Sales Budget) Total cash Available Less Cash Disbursements 0 35,000 180,000 693,000779.500 1,652,500 180,000 728,000 814,500 1,652,500 For Inventory (From Purchasing Budget) 288,000 825,075 For Operating Expenses (From Selling and Admin Budget 213,000 2,533,000 196,750 663,050 0 290,000 50,000 175.950 361,125 For Equipment For Cash Dividends 200,000 90,000 50,000 For Interest (From Previous Month’s Borrowing) Total Cash Disbursements Excess (Deficiency) of Cash Financing Borrowing 833 485,171 1,828,958 (458,950) 23,163 329,329(176,458) 0 412 638,950 704.837 421 496,950 11,837 Repayment Total Financing Cash Balance: Ending 0 505,787 0 294.329 294,329 211.458 Outstanding Loaance Interest on Borrowing (Due the Following Quarter) $211,458 421
SRS Educational Supplies Company Budgeted Income Statement For the Quarter Ended September 30 Sales Cost of goods Sold From sales budget #REF! #REF! Gross Margin Selling and administrative expenses Shipping Other Salaries and wages Advertising Prepaid insurance Depreciation 23,750 38,000 85,000 50,000 From operating budget 3,000 25,000 224,750 Net operating incomes Less interest expense Net income #REF! #REF! #REF! From cash budget SRS Educational Supply Company Balance Sheet September 30 Assets Current assets Cash Accounts receivable Inventory Prepaid insurance $35,000 #REF! #REF! #REF! From cash budget From sales budget-collections From purchase budget #REF! Total current assets Buildings and equipment (net) Total assets 1 125,000 #REF! Beg equip+ purch depr Liabilities and Equity Accounts payable Notes Payable Stockholders equity Capital stock Retained earnings Total liability and equity #REF! 800.115 From purchase budget- cash disb From cash budget , #REF! 420,000 #REF! #REF! From beg balance sheet Beg RE + NI – dividends