Description
Complete Problems P9-27 and P10-21 in the textbook and present your responses in an Excel spreadsheet.
APA style is not required, but solid academic writing is expected.
This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.
I will send the second problem, the excel template and rubric.
The Pursuit o
х
Send Money, FX
Student Portal X
Questions to
х
Course Materix
Grand Canyon X
managerial_ac x
S Ask a new que
х
+
0
Х
.
→ e https://viewer.gcu.edu/vyGhKp
Apps Student Portal | Main 04 Mail – Dawn.Amato@
MInbox – liveoakcheer
Online Banking | Neig
Jostens Yearbook Av.
V Venmo Welcome Da
IP PowerTeacher
P Pandora Internet Rad
141 %
X
456 of 640
C
=
PROBLEM 9-27 Completing a Master Budget [L09-2, L09-4, L09-7, L09-8, L09-9, L09-10]
The following data relate to the operations of Shilow Company, a wholesale distributor of con-
sumer goods:
QB
Current assets as of March 31:
Cash
Accounts receivable.
Inventory…
Buildings and equipment, net.
Accounts payable
Capital stock.
Retained earnings..
$8,000
$20,000
$36,000
$120,000
$21,750
$150,000
$12,250
a.
The gross margin is 25% of sales.
Actual and budgeted sales data:
b.
March (actual)
April
May
June
July
$50,000
$60,000
$72,000
$90,000
$48,000
e
c.
Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following
sale. The accounts receivable at March 31 are a result of March credit sales.
Each month’s ending inventory should equal 80% of the following month’s budgeted cost of
d.
+
1:29 PM
6 4)
11/18/2018
The Pursuit o
х
Send Money, FX
Student Portal X
Questions to
х
Course Materix
Grand Canyon X
6 managerial_ac x
S Ask a new que
х
+
0
Х
→ e
https://viewer.gcu.edu/vyGhKp
.
* Apps Student Portal | Main 04 Mail – Dawn.Amato@
M Inbox – liveoakcheer
Online Banking | Neig
Jostens Yearbook Av.
V Venmo Welcome Da
IP PowerTeacher
P Pandora Internet Rad
141 %
X
456 of 640
Q
C
=
QB
March (actual)
April
May
June
July
$50,000
$60,000
$72,000
$90,000
$48,000
c.
e.
Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following
sale. The accounts receivable at March 31 are a result of March credit sales.
d.
Each month’s ending inventory should equal 80% of the following month’s budgeted cost of
goods sold.
One-half of a month’s inventory purchases is paid for in the month of purchase; the other half
is paid for in the following month. The accounts payable at March 31 are the result of March
purchases of inventory.
f. Monthly expenses are as follows: commissions, 12% of sales; rent, $2,500 per month; other
expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly.
Depreciation is $900 per month (includes depreciation on new assets).
Equipment costing $1,500 will be purchased for cash in April.
h. Management would like to maintain a minimum cash balance of at least $4,000 at the end
of each month. The company has an agreement with a local bank that allows the company to
borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of
$20,000. The interest rate on these loans is 1% per month and for simplicity we will assume
that interest is not compounded. The company would, as far as it is able, repay the loan plus
accumulated interest at the end of the quarter.
e
+
ha 4
1:32 PM
11/18/2018
The Pursuit o
х
Send Money, FX
Student Portal X
Questions to
х
Course Materix
Grand Canyon X
managerial_ac x
S Ask a new que
х
+
0
Х
.
:
→ e https://viewer.gcu.edu/vyGhKp
Apps Student Portal | Main 04 Mail – Dawn.Amato@
M Inbox – liveoakcheer
Online Banking | Neig
Jostens Yearbook Ave
V Venmo Welcome D
IP PowerTeacher
P Pandora Internet Rad
+
141 %
X
457 of 640
Q
C
=
Required:
Using the preceding data:
1. Complete the following schedule:
QB
Schedule of Expected Cash Collections
April May June
Quarter
Cash sales
Credit sales..
Total collections.
$36.000
20.000
$56,000
2. Complete the following:
Merchandise Purchases Budget
April May
June
Quarter
$54,000
Budgeted cost of goods sold
Add desired ending inventory.
Total needs
Less beginning inventory.
Required purchases
$45,000*
43,200
88,200
36,000
$52,200
c
*For April sales: $60,000 sales x 75% cost ratio = $45,000.
$54,000 x 80% = $43,200
+
Ô
e
6 4)
1:33 PM
11/18/2018
The Pursuit o
х
Send Money, FX
Student Portal X
2 Questions to
х
Course Materix
Grand Canyon X
6 managerial_ac x
S Ask a new que
х
+
0
Х
→ e
https://viewer.gcu.edu/vyGhKp
.
:
Apps Student Portal | Main 04 Mail – Dawn.Amato@
M Inbox – liveoakcheer
Online Banking I Nei
Jostens Yearbook Ave
V Venmo Welcome D
IP PowerTeacher
P Pandora Internet Rad
+
141 %
X
457 of 640
Q
C
=
Schedule of Expected Cash Disbursements—Merchandise Purchases
April May June
Quarter
$21,750
26,100
$26,100
$21,750
52,200
QB
March purchases.
April purchases
May purchases.
June purchases.
Total disbursements
$47,850
3. Complete the following cash budget:
Cash Budget
April
May
June
Quarter
$8,000
56,000
64,000
Beginning cash balance..
Add cash collections.
Total cash available
Less cash disbursements:
For inventory
For expenses
For equipment
Total cash disbursements.
Excess (deficiency) of cash..
Financing
Etc.
47,850
13,300
1,500
62,650
1,350
c
+
Ô
e
b)
1:34 PM
11/18/2018
The Pursuit o
х
Send Money, FX
Student Portal x
Questions to
х
Course Materix
Grand Canyon X
managerial_ac x
S Ask a new que
х
+
0
Х
.
:
→ e https://viewer.gcu.edu/vyGhKp
Apps Student Portal | Main 04 Mail – Dawn.Amato@
M Inbox – liveoakcheer
Online Banking | Neig
Jostens Yearbook Av.
V Venmo Welcome Da
IP PowerTeacher
P Pandora Internet Rad
+
141 %
X
457 of 640
Q
C
=
Cash Budget
April
May
June
Quarter
$8,000
20
56,000
64,000
Beginning cash balance..
Add cash collections.
Total cash available
Less cash disbursements:
For inventory
For expenses
For equipment
Total cash disbursements.
Excess (deficiency) of cash..
Financing
Etc.
47,850
13,300
1,500
62,650
1,350
4. Prepare an absorption costing income statement, similar to the one shown in Schedule 9 in the
chapter, for the quarter ended June 30.
5. Prepare a balance sheet as of June 30.
G
+
Q
.
6 4)
1:35 PM
11/18/2018
Purchase answer to see full
attachment
х
Send Money, FX
Student Portal X
Questions to
х
Course Materix
Grand Canyon X
managerial_ac x
S Ask a new que
х
+
0
Х
.
→ e https://viewer.gcu.edu/vyGhKp
Apps Student Portal | Main 04 Mail – Dawn.Amato@
MInbox – liveoakcheer
Online Banking | Neig
Jostens Yearbook Av.
V Venmo Welcome Da
IP PowerTeacher
P Pandora Internet Rad
141 %
X
456 of 640
C
=
PROBLEM 9-27 Completing a Master Budget [L09-2, L09-4, L09-7, L09-8, L09-9, L09-10]
The following data relate to the operations of Shilow Company, a wholesale distributor of con-
sumer goods:
QB
Current assets as of March 31:
Cash
Accounts receivable.
Inventory…
Buildings and equipment, net.
Accounts payable
Capital stock.
Retained earnings..
$8,000
$20,000
$36,000
$120,000
$21,750
$150,000
$12,250
a.
The gross margin is 25% of sales.
Actual and budgeted sales data:
b.
March (actual)
April
May
June
July
$50,000
$60,000
$72,000
$90,000
$48,000
e
c.
Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following
sale. The accounts receivable at March 31 are a result of March credit sales.
Each month’s ending inventory should equal 80% of the following month’s budgeted cost of
d.
+
1:29 PM
6 4)
11/18/2018
The Pursuit o
х
Send Money, FX
Student Portal X
Questions to
х
Course Materix
Grand Canyon X
6 managerial_ac x
S Ask a new que
х
+
0
Х
→ e
https://viewer.gcu.edu/vyGhKp
.
* Apps Student Portal | Main 04 Mail – Dawn.Amato@
M Inbox – liveoakcheer
Online Banking | Neig
Jostens Yearbook Av.
V Venmo Welcome Da
IP PowerTeacher
P Pandora Internet Rad
141 %
X
456 of 640
Q
C
=
QB
March (actual)
April
May
June
July
$50,000
$60,000
$72,000
$90,000
$48,000
c.
e.
Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following
sale. The accounts receivable at March 31 are a result of March credit sales.
d.
Each month’s ending inventory should equal 80% of the following month’s budgeted cost of
goods sold.
One-half of a month’s inventory purchases is paid for in the month of purchase; the other half
is paid for in the following month. The accounts payable at March 31 are the result of March
purchases of inventory.
f. Monthly expenses are as follows: commissions, 12% of sales; rent, $2,500 per month; other
expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly.
Depreciation is $900 per month (includes depreciation on new assets).
Equipment costing $1,500 will be purchased for cash in April.
h. Management would like to maintain a minimum cash balance of at least $4,000 at the end
of each month. The company has an agreement with a local bank that allows the company to
borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of
$20,000. The interest rate on these loans is 1% per month and for simplicity we will assume
that interest is not compounded. The company would, as far as it is able, repay the loan plus
accumulated interest at the end of the quarter.
e
+
ha 4
1:32 PM
11/18/2018
The Pursuit o
х
Send Money, FX
Student Portal X
Questions to
х
Course Materix
Grand Canyon X
managerial_ac x
S Ask a new que
х
+
0
Х
.
:
→ e https://viewer.gcu.edu/vyGhKp
Apps Student Portal | Main 04 Mail – Dawn.Amato@
M Inbox – liveoakcheer
Online Banking | Neig
Jostens Yearbook Ave
V Venmo Welcome D
IP PowerTeacher
P Pandora Internet Rad
+
141 %
X
457 of 640
Q
C
=
Required:
Using the preceding data:
1. Complete the following schedule:
QB
Schedule of Expected Cash Collections
April May June
Quarter
Cash sales
Credit sales..
Total collections.
$36.000
20.000
$56,000
2. Complete the following:
Merchandise Purchases Budget
April May
June
Quarter
$54,000
Budgeted cost of goods sold
Add desired ending inventory.
Total needs
Less beginning inventory.
Required purchases
$45,000*
43,200
88,200
36,000
$52,200
c
*For April sales: $60,000 sales x 75% cost ratio = $45,000.
$54,000 x 80% = $43,200
+
Ô
e
6 4)
1:33 PM
11/18/2018
The Pursuit o
х
Send Money, FX
Student Portal X
2 Questions to
х
Course Materix
Grand Canyon X
6 managerial_ac x
S Ask a new que
х
+
0
Х
→ e
https://viewer.gcu.edu/vyGhKp
.
:
Apps Student Portal | Main 04 Mail – Dawn.Amato@
M Inbox – liveoakcheer
Online Banking I Nei
Jostens Yearbook Ave
V Venmo Welcome D
IP PowerTeacher
P Pandora Internet Rad
+
141 %
X
457 of 640
Q
C
=
Schedule of Expected Cash Disbursements—Merchandise Purchases
April May June
Quarter
$21,750
26,100
$26,100
$21,750
52,200
QB
March purchases.
April purchases
May purchases.
June purchases.
Total disbursements
$47,850
3. Complete the following cash budget:
Cash Budget
April
May
June
Quarter
$8,000
56,000
64,000
Beginning cash balance..
Add cash collections.
Total cash available
Less cash disbursements:
For inventory
For expenses
For equipment
Total cash disbursements.
Excess (deficiency) of cash..
Financing
Etc.
47,850
13,300
1,500
62,650
1,350
c
+
Ô
e
b)
1:34 PM
11/18/2018
The Pursuit o
х
Send Money, FX
Student Portal x
Questions to
х
Course Materix
Grand Canyon X
managerial_ac x
S Ask a new que
х
+
0
Х
.
:
→ e https://viewer.gcu.edu/vyGhKp
Apps Student Portal | Main 04 Mail – Dawn.Amato@
M Inbox – liveoakcheer
Online Banking | Neig
Jostens Yearbook Av.
V Venmo Welcome Da
IP PowerTeacher
P Pandora Internet Rad
+
141 %
X
457 of 640
Q
C
=
Cash Budget
April
May
June
Quarter
$8,000
20
56,000
64,000
Beginning cash balance..
Add cash collections.
Total cash available
Less cash disbursements:
For inventory
For expenses
For equipment
Total cash disbursements.
Excess (deficiency) of cash..
Financing
Etc.
47,850
13,300
1,500
62,650
1,350
4. Prepare an absorption costing income statement, similar to the one shown in Schedule 9 in the
chapter, for the quarter ended June 30.
5. Prepare a balance sheet as of June 30.
G
+
Q
.
6 4)
1:35 PM
11/18/2018
Purchase answer to see full
attachment
Categories: