Based on the above information,

1) create a sales budget

2) create purchases budget

3) create selling and Admin Budget

4) create cash budget

5) create proforma income statement

Policies and Plans used by The Bobcat Beverage Company, Inc., in budgeting 1. All Sales are on Credit. Sales are collected 24% in the month of sale and 76% in the month following sale. 2. Cost of goods sold is budgeted to be 36% of sales, 3. The Bobcat Beverage Company, Inc. plans to end each month with inventory levels equal to 8% of the next month's cost of sales. 4. The company pays for 78% of the purchases of merchandise in the month of the purchase and 22% in the following month. 5. The Bobcat Beverage Company, Inc. pays a sales commission of 6.5% on all sales. The selling commission is paid in the month after the salesmen earn the commission 6. The company believes that advertising expense is a mixed cost. Based on an analysis of data from previous years, they determine that the best estimate of advertising expense is 17.5% of sales plus $60,000. 7. The company pays all of its advertising expense in the month AFTER it is incurred. 8. The Bobcat Beverage Company, Inc. estimates its general and administrative expenses to be equal to 15% of budgeted sales plus $60,000. The general and administrative expenses are paid in the month in which they are incurred. 9. Depreciation is $10,000 per month on the property, plant and equipment owned on August 31, 2019 for the period of this budget. 10. On July 31, 2019, the company purchased and paid cash of $30,000 for a twelve- month policy covering the period August 1, 2019 to July 31, 2020 and recorded the cost in Prepaid Insurance, 11. On September 15, 2019, the company purchased Land for $150.000, paying cash. 12. The Bobcat Beverage Company, Inc. records interest expense and accrues interest payable at the rate of 1% per month (simple interest) based on the beginning balance of Long-Term Debt for that month. The Bobcat Beverage Company, Inc. will pay interest in the month it is incurred. 13. The Bobeat Beverage Company must maintain a minimum cash balance of $25,000. If it must borrow any funds, it must borrow in $1.000 increments. Any References Mailings Review View Help Foxit Reader PDF The Bobcat Beverage Company, Inc. sells a wide variety of beverages and snack foods. The Bobcat Beverage Co., Inc. Sales Forecast for Sept. to Nov., 2019 September October November Sales Revenue (all Sales are $700,000 $800,000 $900,000 on Credit) Bobcat Beverage Company, Inc Balance Sheet As of August 31, 2019 Assets: Cash Accounts receivable Inventory Prepaid Insurance Current assets S 25,800 595,000 50,688 27.500 698,988 Liabilities: Accounts payable Sales commissions payable Advertising Expense Payable Income taxes payable Dividends payable Current liabilities s 81.859 59,500 121,250 22,000 0 S 284.609 Long-term debt 220,000 Property. Plant & Equipment Land Plant & Equipment Accumulated depreciation 100,000 300,000 (100,000 Stockholders' equity Common stock Retained earings Total SE & Liabilities S 89,500 404,879 S 998.988 Total assets $ 998.988 price of ALLE 21 h Focus FS Prisen FB Home End FB F7 ih % Conditioning S Font Alignment Number Cells Editing Paste Analyse Sant . Clipboard Styles Analysis Sentity 1 D September 5700,000 October $800,000 November $900.000 245 76% 30 78% 22 Expected sales tall sales are credit ales) + Collections of Accounts Receivable 1 Month of Sale 7 Month following Sale 8 Cost of Goods Sold percentage of sales 30 1 Inventory Purchase information #2 Purchases paid in current month 33 Purchases paid innan month 4 Purchases are all on credit 15 Planned ending inventory as a percentage of next month's Cost of Goods Sold 17 Sales Commission Information 10 Sales commissions as a percentage of sales 29 Sales commissions are paid the month after they are incurred 20 1 Advertising Expense Information 22 Variable Rate 23 Fored Cost 24 25 20 Insurance policy Information 21 of months of insurance coverage paid for each year 28 The powcy period is from August 1 to July 31 each year 29 The premium was pard on July 31, 2019 10 There will be charged to prepaid insurance 6.5 17 50% 560.000 12 $30,000 500,000 15.00% 32 General and Administrative pense Information 33 Fad cont portion > Varublurate as a percentage of sales) 36 Selling and administrative expenses are paid in the months incurred 37 Asset information 38 Purchase and on September 15, 2019 30 Current Depreciation expense per month 40 41 Long-Term Loan interest Information The interest on the long-term debit per month is 43 Interest is paid on the principle balance at the beginning of the month 44 Minian Cash Bance 46 New borrowing must be in $1.000 increments 150,000 10,000 15 $25.000 47 Texnormation 4 Income tax rate 50 5 bindendedamaian Cash didend declared on September 20, 2019 51 Cash videre pad on October 15, 2019 14 56 30 SY 335.000 D E B 1 Bobcat Beverage Company 2 Balance Sheets 3 As of 4 August 31, 2019 5 ASSETS 6 CURRENT ASSETS 7 Cash 25,800 8 Accounts Receivable $ 595,000 9 Inventory $ 50,688 10 Prepaid Insurance $ 27,500 11 TOTAL CURRENT ASSETS $ 698,988 12 13 PROPERTY PLANT & EQUIPMENT 14 Land $ 100,000 15 Equipment 300,000 16 Accumulated Depreciation $ (100,000) 17 TOTAL PPE $ 300,000 18 19 TOTAL ASSETS $ 998,988 20 21 22 LIABILITIES & STOCKHOLDERS EQUITY 23 CURRENT LIABILITIES 24 Accounts Payable $ 81,859 05 Commissions Payable $ 59,500 26 Advertising Expense Payable $ 121,250 27 Income Taxes Payable $ 22,000 28 Dividends Payable $ 29 TOTAL CURRENT LIABILITIES $ 284,609 30 31 LONG TERM DEBT $ 220,000 32 33 STOCKHOLDERS EQUITY 34 Common Stock $ 35 Retained Earnings 89,500 $ 404,879 36 TOTAL STOCKHOLDERS EQUITY $ 494,379 37 38 TOTAL LIABILITIES & STOCKHOLDERS EQUITY $ 998,988 39 40 41 12 43 44 Policies and Plans used by The Bobcat Beverage Company, Inc., in budgeting 1. All Sales are on Credit. Sales are collected 24% in the month of sale and 76% in the month following sale. 2. Cost of goods sold is budgeted to be 36% of sales, 3. The Bobcat Beverage Company, Inc. plans to end each month with inventory levels equal to 8% of the next month's cost of sales. 4. The company pays for 78% of the purchases of merchandise in the month of the purchase and 22% in the following month. 5. The Bobcat Beverage Company, Inc. pays a sales commission of 6.5% on all sales. The selling commission is paid in the month after the salesmen earn the commission 6. The company believes that advertising expense is a mixed cost. Based on an analysis of data from previous years, they determine that the best estimate of advertising expense is 17.5% of sales plus $60,000. 7. The company pays all of its advertising expense in the month AFTER it is incurred. 8. The Bobcat Beverage Company, Inc. estimates its general and administrative expenses to be equal to 15% of budgeted sales plus $60,000. The general and administrative expenses are paid in the month in which they are incurred. 9. Depreciation is $10,000 per month on the property, plant and equipment owned on August 31, 2019 for the period of this budget. 10. On July 31, 2019, the company purchased and paid cash of $30,000 for a twelve- month policy covering the period August 1, 2019 to July 31, 2020 and recorded the cost in Prepaid Insurance, 11. On September 15, 2019, the company purchased Land for $150.000, paying cash. 12. The Bobcat Beverage Company, Inc. records interest expense and accrues interest payable at the rate of 1% per month (simple interest) based on the beginning balance of Long-Term Debt for that month. The Bobcat Beverage Company, Inc. will pay interest in the month it is incurred. 13. The Bobeat Beverage Company must maintain a minimum cash balance of $25,000. If it must borrow any funds, it must borrow in $1.000 increments. Any References Mailings Review View Help Foxit Reader PDF The Bobcat Beverage Company, Inc. sells a wide variety of beverages and snack foods. The Bobcat Beverage Co., Inc. Sales Forecast for Sept. to Nov., 2019 September October November Sales Revenue (all Sales are $700,000 $800,000 $900,000 on Credit) Bobcat Beverage Company, Inc Balance Sheet As of August 31, 2019 Assets: Cash Accounts receivable Inventory Prepaid Insurance Current assets S 25,800 595,000 50,688 27.500 698,988 Liabilities: Accounts payable Sales commissions payable Advertising Expense Payable Income taxes payable Dividends payable Current liabilities s 81.859 59,500 121,250 22,000 0 S 284.609 Long-term debt 220,000 Property. Plant & Equipment Land Plant & Equipment Accumulated depreciation 100,000 300,000 (100,000 Stockholders' equity Common stock Retained earings Total SE & Liabilities S 89,500 404,879 S 998.988 Total assets $ 998.988 price of ALLE 21 h Focus FS Prisen FB Home End FB F7 ih % Conditioning S Font Alignment Number Cells Editing Paste Analyse Sant . Clipboard Styles Analysis Sentity 1 D September 5700,000 October $800,000 November $900.000 245 76% 30 78% 22 Expected sales tall sales are credit ales) + Collections of Accounts Receivable 1 Month of Sale 7 Month following Sale 8 Cost of Goods Sold percentage of sales 30 1 Inventory Purchase information #2 Purchases paid in current month 33 Purchases paid innan month 4 Purchases are all on credit 15 Planned ending inventory as a percentage of next month's Cost of Goods Sold 17 Sales Commission Information 10 Sales commissions as a percentage of sales 29 Sales commissions are paid the month after they are incurred 20 1 Advertising Expense Information 22 Variable Rate 23 Fored Cost 24 25 20 Insurance policy Information 21 of months of insurance coverage paid for each year 28 The powcy period is from August 1 to July 31 each year 29 The premium was pard on July 31, 2019 10 There will be charged to prepaid insurance 6.5 17 50% 560.000 12 $30,000 500,000 15.00% 32 General and Administrative pense Information 33 Fad cont portion > Varublurate as a percentage of sales) 36 Selling and administrative expenses are paid in the months incurred 37 Asset information 38 Purchase and on September 15, 2019 30 Current Depreciation expense per month 40 41 Long-Term Loan interest Information The interest on the long-term debit per month is 43 Interest is paid on the principle balance at the beginning of the month 44 Minian Cash Bance 46 New borrowing must be in $1.000 increments 150,000 10,000 15 $25.000 47 Texnormation 4 Income tax rate 50 5 bindendedamaian Cash didend declared on September 20, 2019 51 Cash videre pad on October 15, 2019 14 56 30 SY 335.000 D E B 1 Bobcat Beverage Company 2 Balance Sheets 3 As of 4 August 31, 2019 5 ASSETS 6 CURRENT ASSETS 7 Cash 25,800 8 Accounts Receivable $ 595,000 9 Inventory $ 50,688 10 Prepaid Insurance $ 27,500 11 TOTAL CURRENT ASSETS $ 698,988 12 13 PROPERTY PLANT & EQUIPMENT 14 Land $ 100,000 15 Equipment 300,000 16 Accumulated Depreciation $ (100,000) 17 TOTAL PPE $ 300,000 18 19 TOTAL ASSETS $ 998,988 20 21 22 LIABILITIES & STOCKHOLDERS EQUITY 23 CURRENT LIABILITIES 24 Accounts Payable $ 81,859 05 Commissions Payable $ 59,500 26 Advertising Expense Payable $ 121,250 27 Income Taxes Payable $ 22,000 28 Dividends Payable $ 29 TOTAL CURRENT LIABILITIES $ 284,609 30 31 LONG TERM DEBT $ 220,000 32 33 STOCKHOLDERS EQUITY 34 Common Stock $ 35 Retained Earnings 89,500 $ 404,879 36 TOTAL STOCKHOLDERS EQUITY $ 494,379 37 38 TOTAL LIABILITIES & STOCKHOLDERS EQUITY $ 998,988 39 40 41 12 43 44