Student Name:

Class:
Problem 10-19

Requirement 1:
MINDEN COMPANY

Schedule of cash receipts:

Cash sales-May
Collections on accounts receivable:
April 30 balance
May sales
Total cash receipts

Schedule of cash payments for purchases:

April 30 accounts payable balance
May purchases
Total cash payments

MINDEN COMPANY
Cash Budget
For the Month of May

Cash balance, beginning

Add receipts from customers
Total cash available
Less disbursements:
Purchase of inventory
Selling and administrative expenses
Purchases of equipment
Total cash disbursements
Excess of receipts over disbursements
Financing:
Borrowings-note
Repayments-note
Interest
Total financing
Cash balance, ending
 Student Name:
Class:
Problem 10-19

Requirement 2:
MINDEN COMPANY
Budgeted Income Statement
For the Month of May

Sales
Cost of goods sold:
Beginning inventory
Add purchases
Goods available for sale
Ending inventory
Cost of goods sold
Gross margin
Selling and administrative expenses
Net operating income
Interest expense
Net income

Requirement 3:
MINDEN COMPANY
Budgeted Balance Sheet
May 31

Assets
Cash
Accounts receivable
Inventory
Plant and equipment, net of depreciation
Total assets

Liabilities and Equity

Accounts payable
Note payable
Capital stock
Retained earnings
Total liabilities and equity
Given Data P10-19:

MINDEN COMPANY
Balance Sheet
April 30

Assets
Cash $ 9,000
Accounts receivable 54,000
Inventory 30,000
Buildings and equipment, net of depreciation 207,000
Total assets $ 300,000

Liabilities and Stockholders' Equity

Accounts payable $ 63,000
Note payable 14,500
Capital stock, no par 180,000
Retained earnings 42,500
Total liabilities and stockholders' equity $ 300,000

Budgeted Data relating to May:

Budgeted sales $ 200,000

Budgeted sales in cash (remainder credit) $ 60,000
Percent of credit sales collected in same month 50%
Expected inventory purchases during May $ 120,000
Purchases paid for in cash in month purchased 40%
May accounts payable paid in June 100%
Budgeted inventory balance, May 31 $ 40,000
Budgeted sellin and admin. expenses, May 31 $ 51,000
Budgeted depreciation, May 31 $ 2,000
Existing note payable paid in May 100%
Interest expense for May $ 100
Equipment purchases in May $ 6,500
New note $ 20,000
 Student Name:
Class:
Problem 10-26

WESTEX PRODUCTS

Requirement 1a: Schedule of expected cash collections

Next Year's Quarter

First Second Third Fourth
Current year - Fourth quarter sales:
Next year - First quarter sales:
Next year - Second quarter sales:
Next year - Third quarter sales:
Next year - Fourth quarter sales:
Total cash collections

Requirement 1b: Schedule of expected cash disbursements for merchandise purchases for next year

Next Year's Quarter

First Second Third Fourth
Current year - Fourth quarter purchases:
Next year - First quarter purchases:
Next year - Second quarter purchases:
Next year - Third quarter purchases:
Next year - Fourth quarter purchases:
Total cash payments

Requirement 2: Budgeted selling and administrative expenses for next year

Quarter
First Second Third Fourth
Budgeted sales
Variable expense rate
Variable expenses
Fixed expenses
Total expenses
Less depreciation
Cash disbursements
Requirement 3: Cash budget for next year

Quarter
First Second Third Fourth
Cash balance, beginning
Add collections from sales
Total cash available
Less disbursements:
Merchandise purchases
Selling and administrative expenses
Dividends
Land
Total disbursements
Excess (deficiency) of receipts
over disbursements
Financing:
Borrowings
Repayments
Interest
Total financing
Cash balance, ending
 Total

s for next year

Total

Year
Year
Given Data P10-26:

WESTEX PRODUCTS

Budgeted Sales and Merchandise Purchases:

Merchandise
Sales Purchases
Current year
Fourth quarter $ 200,000 $ 126,000
Next year
First quarter estimated $ 300,000 $ 186,000
Second quarter estimated $ 400,000 $ 246,000
Third quarter estimated $ 500,000 $ 305,000
Fourth quarter estimated $ 200,000 $ 126,000

Additional information:
Percentage of sales collected in same quarter 65%
Percentage of sales collected in quarter following sales 33%
Percentage of sales deemed uncollectible 2%
Percentage of merchandise purchases paid in same quarter 80%
Percentage of merchandise purchases pain in following quarter 20%
Budgeted quarterly operating expenses for next year $ 50,000
plus percentage of sales 15%
Amount of depreciation budgeted each quarter $ 20,000
Dividends to be paid each quarter $ 10,000
Cash purchase of land in second quarter $ 75,000
Cash purchase of land in third quarter $ 48,000
Cash account balance at end of current year $ 10,000
Bank loan borrowing increments $ 1,000
Maximum loan balance allowed $ 100,000
Interest rate per quarter on bank loans 2.5%
Current outstanding loan balance $ -
 Student Name:
Class:
Case 10-30

EARRINGS UNLIMITED
Budgets

April May June Quarter

Requirement 1a. Sales budget:
Budgeted sales in units
Selling price per unit
Total sales

Requirement 1b. Schedule of expected cash collections:

February sales
March sales
April sales
May sales
June sales
Total cash collections

Requirement 1c. Merchandise purchases budget:

Budgeted unit sales
Add desired ending inventory
Total needs
Less beginning inventory
Required purchases in units
Unit cost
Required dollar purchases

Requirement 1d. Budgeted cash disbursements for merchandise purchases:

Accounts payable
April purchases
May purchases
June purchases
Total cash disbursements
 Student Name:
Class:
Case 10-30

Requirement 2:
EARRINGS UNLIMITED
Cash Budget
For the Three Months Ending June 30

April May June Quarter

Cash balance, beginning
Add receipts from customers
Total cash available
Less disbursements:
Merchandise purchases
Advertising
Rent
Salaries
Commissions (4% of sales)
Utilities
Equipment purchases
Dividends paid
Total disbursements
Excess (deficiency) of receipts
over disbursements
Financing:
Borrowings
Repayments
Interest
Total financing
Cash balance, ending

Requirement 3:
EARRINGS UNLIMITED
Budgeted Income Statement
For the Three Months Ending June 30

Sales in units
Sales
Variable expenses:
Cost of goods sold
Commissions
Contribution margin
Fixed expenses:
Advertising
Rent
Salaries
Utilities
Insurance
Depreciation
Net operating income
Less interest expense
 Student Name:
Class:
Case 10-30

Net income
 Student Name:
Class:
Case 10-30

EARRINGS UNLIMITED
Budgeted Balance Sheet
June 30

Assets
Cash
Accounts receivable
Inventory
Prepaid insurance
Property and equipment, net
Total assets

Liabilities and Equity

Accounts payable, purchases
Dividends payable
Capital stock, no par
Retained earnings
Total liabilities and equity

Accounts receivable at June 30:

May sales
June sales
Total

Retained earnings at June 30:

Balance, March 31
Add net income
Total
Less dividends declared
Balance, June 30
Given Data Case 10-30:

EARRINGS UNLIMITED

Minimum ending cash balance $50,000

Selling price $10

Recent and forecast sales:

January (actual) $ 20,000
February (actual) $ 26,000
March (actual) $ 40,000
April $ 65,000
May $ 100,000
June $ 50,000
July $ 30,000
August $ 28,000
September $ 25,000

Desired ending inventories (percentage 40%

of next month's sales)
Cost of earrings $ 4

Purchases paid as follows:

In month of purchase 50%
In following month 50%

Collection on sales:
Sales collected current month 20%
Sales collected following month 70%
Sales collected 2nd month following 10%

Variable monthly expenses:

Sales commissions (% of sales) 4%

Fixed monthly expenses:

Advertising $ 200,000
Rent $ 18,000
Salaries $ 106,000
Utilities $ 7,000
Insurance (12 months paid in November) $ 3,000
Depreciation $ 14,000

Equipment purchased in May $ 16,000

Equipment purchased in June $ 40,000
Dividends declared each quarter $ 15,000
Given Data Case 10-30:

Balance sheet at March 31:

Assets
Cash $74,000
Accounts receivable 346,000
Inventory 104,000
Prepaid insurance 21,000
Property and equipment (net) 950,000
Total assets $1,495,000

Liabilities and Stockholders' Equity

Accounts payable $100,000
Dividends payable 15,000
Capital stock 800,000
Retained earnings 580,000
Total liabilities and stockholders' equity $1,495,000

Agreement with Bank:

Borrowing increments $1,000
Interest rate per month 1%
Repayment increments $1,000
Total of interest paid each quarter 100%
Required minimum cash balance $50,000