Clipboard B C D E F Managerial Accounting - Course Project Budgeted Sales Cash Sales Credit Sales Total Collections March April May June July Schedule of Expected Cash Collections April May $ 36,000 20,000 $ 56,000 June Quarter 3 Merchandise Purchases Budget 4. April May June Quarter 15 Budgeted Cost of Goods Sold $ 45,000 16 add: Desired Ending Inventory 43,200 17 Total Needs 88,200 18 less: Beginning Inventory 36,000 19 Required Purchases $ 52,200 20 21 22 Schedule of Expected Cash Disbursements - Merchandise Purchaes 23 24 March Purchases 25 April Purchases April May June Quarter $ 21,750 26,100 26,100 $ 21,750 52,200 26 May Purchases 27 June Purchases 28 Total Disbursements $ 47,850 29 30 Schedule of Expected Cash Disbursements - Selling & Administrative 31 12 Commissions 33 Rent 34 Other Expenses 35 Total Disbursements April May $ 7,200 2,500 3,600 13,300 June Quarter 26 Sheet Ready LA Format Painter Clipboard vix fx tal Needs A 2 Font B C D 88,200 ss: Beginning Inventory 36,000 equired Purchases $ 52,200 L Schedule of Expected Cash Disbursements - Merchandise Purchas March Purchases April Purchases April May $ 21,750 26,100 26,100 June Quarter $ 21,750 52,200 May Purchases June Purchases Total Disbursements 9 30 $ 47,850 Schedule of Expected Cash Disbursements - Selling & Administrative 31 April May June Quarter 32 Commissions $ 7,200 33 Rent 2,500 34 Other Expenses 3,600 35 Total Disbursements $ 13,300 36 37 Cash Budget April May June 39 Cash Balance Beginning Quarter $ 8,000 40 Add: Cash Collections 56,000 41 Total Cash Available 64,000 42 43 Less Cash Disbursements 44 For Inventory 47,850 45 For Expenses 13,300 46 For Equipment 47 Total Cash Disbursements 1,500 Borrowing 4 Excess (deficiency) of Cash Repayments 55 interest Paid Ending Cash Balance 62.650 1.350 Sheet Tiere is a amplate for the projec Link to Course Project Template B The key information and instructions related to the project is listed below The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods Current assets as of March 31 Cash Accounts receivable Inventory Building and equipment, net Accounts payable Common stock Retained earnings a. The gross margin is 25% of sales b. Actual and budgeted sales data: March (actual) Apra Mary June July $8,000 $20,000 $36.000 $12000 $21.750 $150,000 $12.250 $50,000 560,000 $72.000 $90.000 548 000 JUN $40.0001 346 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. d. Each month's ending inventory should equal 80% of the following month's budgeted cost of goods sold e. 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 1. 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) g 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 Using the data provided above, use the Excel Template provided to prepare the following budget schedules 1 Sales Budget (Merely enter the sales data provided) 2 Schedule of Expected Cash Collections 3. Merchandise Purchases Budget 4. Schedule of Expected Cash Disbursements Merchandise Purchases 5. Schedule of Expected Cash Disbursements Selling and Administrative Expenses 6 Cash Budget Please note that Excel formulas or functions should be used throughout the budget wherever possible instead of entering numbers into each cell Grading Rubric Criteria