Sales Budget April May

Budgeted Sales 65000 100000

Selling Price Per Unit 10 10
Budgeted Sales in Dollars 650000 1000000

Schedule of Expected Cash Collection from Sales

April May
February 26000 0
March 280000 40000
April 130000 455000
May 0
June

Merchandise Budget April May

Budgeted Sales (in units) 65000 100000
Desired Ending Inventory 40% Cost of Next Month's Sales 40000 20000
Total Needs 105000 120000
Less Beginning Inventory 26000 40000
Required Purchases 79000 80000
Purchase Price Per Unit 4 4
Total Cost of Merchandise Purchases 316000 320000

Schedule of Expected Cash Contributions for Merchandise April May

Accounts Payable 100000
April Purchases 158000
May Purchases 160000
June Purchases
Total Cash Payments 100000 318000
June Total
50000 215000
10 10
500000 2150000

June Total
0 26000
0 320000
65000 650000

June Total
50000 215000
12000 72000
120000 287000
20000 86000
100000 259012
4 4
400000 1036048

June Quarter

158000 636000
160000 320000
200000 200000
518000 1156000
 Earrings Ltd
Cash Budget
For 3 months ending June 30

April May June

Cash Balance 74000 50000 50000
Add: collections 436000 695000 865000
Total Cash 510000 745000 915000

Less: disbursements
Merchandise purchase 258000 318000 244000
Advert 200000 200000 200000
Rent 18000 18000 18000
Salaries 106000 106000 106000
Commision 26000 40000 20000
Utilities 7000 7000 7000
Equipmnt purchase 0 16000 40000
Dividend paid 15000 0 0
Total disbursementsof
Excess(deficiency) 630000 705000 635000
receipts over
disbursements -120000 40000 280000

Financing:
Borrowings 170000 10000
Repayments -180000
interest -5300
Total financing 170000 10000 -185300

Cash balance ending 50000 50000 94700

Quarter
74000
1996000
2070000

820000
600000
54000
318000
86000
21000
56000
15000
1970000

100000

180000
-180000
-5300
-5300

94700
 Earrings Ltd
Budget Balance Sheet
For 3 months ending June 30

Assets:
Cash 94700
(Refer calcularion below)---> A/R 500000
Inventory 48000
Prepaid ins. 12000
PPE 964000
Total Assets 1618700

Liabilities and Stockholder's equity

A/P 84000
Dividends payables 15000
Capital stock 800000
(Refer calcularion below)---> RE 719700
Total Liab and Equity 1618700

Account receivable at June 30

May Sales x 10% x $10 100000

June sales x 80% x $10 400000
Total 500000

Retained Earnings at June 30

Balance, march 31 580000
Add net income 154700
Total 734700
Less dividends declared 15000
Balance, June 30 719700