Hockey Den

Budget Planning Assumptions & Given

October 2011 through September 2012

Sales Budget
Resale Price per Unit 100.00

Merchandise Purchases Budget

Actual Unit Sales in September 700
Purchase Price per Unit 60.00
Hockey sticks are on hand on September 30 900
Desired Ending Inventory as a % of the next months 90%
estimated sales

Selling Expense Budget

Sales Commission % 10%
Sales Manager's Salary 2,000.00

General & Administrative Expense Budget

Administrative Salaraies 4,500.00
Equipment Depreciation 1,500.00

Cash Budget
Cash Sales % 40%
Credit Sales % 60%

Hockey Den’s purchases of merchandise are entirely on account.

Full payment is made in the month following purchase.
September 30, 2011 Accounts Payable Balance 58,200

Cash dividend to be paid in November 3,000

Purchase of equipment in December 25,000
Q3 Income Tax liability that will be paid October 15, 2011 20,000
September 30, 2011 cash balance 20,000
Bank required compensating balance 20,000

Interest prior month’s ending loan balance 1%

Repays loans when the ending cash balance exceeds 20,000
Loan Balance on September 30, 2011 10,000
Income Tax rate. 40%
Taxes for current quarter will be paid in January of next year

Balance Sheet - Balances at September 30, 2011

Equipment 200,000
Accumulated depreciation 36,000
Common stock 150,000
Retained earnings 41,800
Hockey Den
Monthly Sales Budget
October 2011 through September 2012

September-11 October-11 November-11 December-11 January-12

ACTUAL BUDGET BUDGET BUDGET BUDGET
Budgeted Unit Sales 700 1,000 800 1,400 900
Budgeted Unit Price 100 100 100 100 100
Budgeted Total Sales 70,000 100,000 80,000 140,000 90,000
February-12 March-12 April-12 May-12 June-12 July-12 August-12
BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET
September-12
BUDGET
Hockey Den
Merchandise Purchases Budget
October 2011 through September 2012

September-11 October-11 November-11 December-11 January-12

ACTUAL BUDGET BUDGET BUDGET BUDGET
Next month's unit sales 800 1,400 900 -
Ending inventory percentage 90% 90% 90% 90% 90%
Budgeted ending inventory units 900 720 1,260 810 -
Add current month's unit sales 700 1,000 800 1,400 900
Total units needed 1,600 1,720 2,060 2,210 900
Deduct beginning inventory units 630 900 720 1,260 810
Number of units to be purchased 970 820 1,340 950 90
Budgeted cost per unit 60 60 60 60 60
Budgeted cost of purchases $ 58,200 $ 49,200 $ 80,400 $ 57,000 $ 5,400
February-12 March-12 April-12 May-12 June-12 July-12 August-12
BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET
- - - - - - -
90% 90% 90% 90% 90% 90% 90%
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
60 60 60 60 60 60 60
$ - $ - $ - $ - $ - $ - $ -
September-12
BUDGET
-
90%
-
-
-
-
-
60
$ -
Hockey Den
Selling Expense Budget
October 2011 through September 2012

September-11 October-11 November-11 December-11 January-12

ACTUAL BUDGET BUDGET BUDGET BUDGET
Variable Costs
Budgeted sales 70,000 100,000 80,000 140,000 90,000
Sales commission % 10% 10% 10% 10% 10%
Sales commission 7,000 10,000 8,000 14,000 9,000
Fixed Costs
Sales manager salary 2,000 2,000 2,000 2,000 2,000
Total selling expenses 9,000 12,000 10,000 16,000 11,000
February-12 March-12 April-12 May-12 June-12 July-12 August-12
BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

- - - - - - -
10% 10% 10% 10% 10% 10% 10%
- - - - - - -

2,000 2,000 2,000 2,000 2,000 2,000 2,000

2,000 2,000 2,000 2,000 2,000 2,000 2,000
September-12
BUDGET

-
10%
-

2,000
2,000
Hockey Den
General & Administrative (G&A) Expense Budget
October 2011 through September 2012

September-11 October-11 November-11 December-11 January-12

ACTUAL BUDGET BUDGET BUDGET BUDGET
Variable Costs

Fixed Costs
Administrative Salaries 4,500.00 4,500.00 4,500.00 4,500.00 4,500.00
Equipment Depreciation 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Total G&A expenses 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00
February-12 March-12 April-12 May-12 June-12 July-12 August-12
BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

4,500.00 4,500.00 4,500.00 4,500.00 4,500.00 4,500.00 4,500.00

1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00
September-12
BUDGET

4,500.00
1,500.00
6,000.00
Hockey Den
Cash Budget
October 2011 through September 2012

September-11 October-11 November-11 December-11 January-12

ACTUAL BUDGET BUDGET BUDGET BUDGET
Budgeted Sales 70,000 100,000 80,000 140,000 90,000
Ending Accounts Receivable 42,000 60,000 48,000 84,000 54,000

Cash Receipts
Cash Sales 28,000 40,000 32,000 56,000 36,000
Collection of Receivables 42,000 60,000 48,000 84,000
Total Cash Receipts 82,000 92,000 104,000 120,000

Accounts Payable Balance 58,200 49,200 80,400 57,000 5,400

Cash Disbursements for Merchandise

Merchandise Purchases 58,200 49,200 80,400 57,000

Beginning cash balance 20,000 20,000 22,272 20,000

Receipts from customers 82,000 92,000 104,000 120,000
Total cash available 102,000 112,000 126,272 140,000
Disbursements
Payments for merchandise 58,200 49,200 80,400 57,000
Sales commissions 10,000 8,000 14,000 9,000
Sales Management Salaries 2,000 2,000 2,000 2,000
Administrative salaries 4,500 4,500 4,500 4,500
Income taxes 20,000 - - 28,669
Dividends - 3,000 - -
Interest 100 228 - 196
Equipment purchase - - 25,000 -
Total disbursements 94,800 66,928 125,900 101,365
Preliminary balance 7,200 45,072 372 38,635
Additional borrowing 12,800 - 19,628 -
Loan repayment - (22,800) - (19,628)
Ending cash balance 20,000 22,272 20,000 19,007

Ending loan balance 10,000 22,800 - 19,628 -

February-12 March-12 April-12 May-12 June-12 July-12 August-12
BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET
- - - - - - -
- - - - - - -

- - - - - - -
54,000 - - - - - -
54,000 - - - - - -

- - - - - - -

5,400 - - - - - -

19,007 - - - - - -
54,000 - - - - - -
73,007 - - - - - -

5,400 - - - - - -
- - - - - - -
2,000 2,000 2,000 2,000 2,000 2,000 2,000
4,500 4,500 4,500 4,500 4,500 4,500 4,500
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
11,900 6,500 6,500 6,500 6,500 6,500 6,500
61,107 (6,500) (6,500) (6,500) (6,500) (6,500) (6,500)
September-12
BUDGET
-
-

-
-
-

-
-
-

-
-
2,000
4,500
-
-
-
-
6,500
(6,500)
Hockey Den
Budgeted Income Statement
October 2011 through September 2012

September-11 October-11 November-11 December-11 Q4 Total

ACTUAL BUDGET BUDGET BUDGET Budget

Sales 100,000 80,000 140,000 320,000

Cost of Goods Sold 60,000 48,000 84,000 192,000

Gross Profit 40,000 32,000 56,000 128,000

Operating Expenses
Sales Commissions 10,000 8,000 14,000 32,000
Sales Managerment Salaries 2,000 2,000 2,000 6,000
Administrative Salaries 4,500 4,500 4,500 13,500
Equipment Depreciation 1,500 1,500 1,500 4,500
Interest Expense 100 228 - 328
Net Income Before Taxes 21,900 15,772 34,000 71,672
Income Tax Expense 8,760 6,309 13,600 28,669
Net Income 13,140 9,463 20,400 43,003
January-12 February-12 March-12 April-12 May-12 June-12 July-12
BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET
August-12 September-12
BUDGET BUDGET
Hockey Den
Budgeted Balance Sheet
October 2011 through September 2012

September-11 October-11 November-11 December-11

ACTUAL BUDGET BUDGET BUDGET
Assets
Current Assets
Cash 20,000 22,272 20,000
Accounts Receivable 60,000 48,000 84,000
Inventory 43,200 75,600 48,600
Total Current Assets 123,200 145,872 152,600
Property, Plant, and Equipment (PP&E)
Equipment 200,000 200,000 225,000
Less Accumulated Depreciation (37,500) (39,000) (40,500)
Net Book Value (PP&E) 162,500 161,000 184,500

Total Assets 285,700 306,872 337,100

Liabilities & Stockholder's Equity

Current Liabilities
Accounts Payable 49,200 80,400 57,000
Income Taxes Payable 8,760 15,069 28,669
Bank Loan Payable 22,800 - 19,628
Total Libilities 80,760 95,469 105,297

Stockholder's Equity
Common Stock 150,000 150,000 150,000
Retained Earnings 54,940 61,403 81,803
Total Stockholder's Equity 204,940 211,403 231,803

Total Liabilities & Stockholder's Equity 285,700 306,872 337,100

January-12 February-12 March-12 April-12 May-12 June-12 July-12
BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

225,000 225,000 225,000 225,000 225,000 225,000 225,000

(42,000) (43,500) (45,000) (46,500) (48,000) (49,500) (51,000)
183,000 181,500 180,000 178,500 177,000 175,500 174,000
August-12 September-12
BUDGET BUDGET

225,000 225,000
(52,500) (54,000)
172,500 171,000