Complete a Sales Budget for the Bobcat Beverage Company using the following information and show what formulas
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Question:
Complete a Sales Budget for the Bobcat Beverage Company using the following information and show what formulas used:
Budget Data:
Beginning Balance Sheet:
Sales Forcast for Sep to Nov 2019:
Policies and Plans used by the Bobcat Beverage Company:
Transcribed Image Text:
B D E 2 September S700,000 October $800,000 November S900,000 3 Expected Sales (all sales are credit sales) 4 5 Collections of Accounts Receivable Month of Sale 24% 7 Month following Sale 76% 8 9 Cost of Goods Sold percentage of sales 36% 10 11 Inventory Purchase Information Purchases paid in current month Purchases paid in next month Purchases are all on credit 12 78% 13 22% 14 15 Planned ending inventory as a percentage of next month's Cost of Goods Sold 8% 16 17 Sales Commission Information 18 Sales commissions as a percentage of sales Sales commissions are paid the month after they are incurred. 6.5% 19 20 21 Advertising Expense Information 22 Variable Rate 17.50% 23 Fixed Cost S60,000 24 25 26 Insurance policy Information # of months of insurance coverage paid for each year The policy period is from August 1 to July 31 each year The premium was paid on July 31, 2019 The premium will be charged to prepaid insurance 27 12 28 29 $30,000 30 31 32 General and Administrative Expense Information Fixed cost portion 34 Variable rate (as a percentage of sales) 35 Selling and administrative expenses are paid in the month incurred 33 $60,000 15.00% 36 37 Fixed Asset Information 38 Purchase Land on September 15, 2019 Current Depreciation expense per month 150,000 10,000 39 40 41 Long-Term Loan Interest Information 42 The interest rate on the long-term debt per month is Interest is paid on the principle balance at the beginning of the month 1% 43 44 Minimum Cash Balance $25,000 45 New borrowing must be in $1,000 increments 46 47 Tax Information 48 Income tax rate 25% 49 Taxes are paid in the month after they are incurred (expensed) 50 51 Dividend Information 52 $25,000 Cash dividend declared on September 20, 2019 Cash dividend paid on October 15, 2019 53 54 55 B D E 2 September S700,000 October $800,000 November S900,000 3 Expected Sales (all sales are credit sales) 4 5 Collections of Accounts Receivable Month of Sale 24% 7 Month following Sale 76% 8 9 Cost of Goods Sold percentage of sales 36% 10 11 Inventory Purchase Information Purchases paid in current month Purchases paid in next month Purchases are all on credit 12 78% 13 22% 14 15 Planned ending inventory as a percentage of next month's Cost of Goods Sold 8% 16 17 Sales Commission Information 18 Sales commissions as a percentage of sales Sales commissions are paid the month after they are incurred. 6.5% 19 20 21 Advertising Expense Information 22 Variable Rate 17.50% 23 Fixed Cost S60,000 24 25 26 Insurance policy Information # of months of insurance coverage paid for each year The policy period is from August 1 to July 31 each year The premium was paid on July 31, 2019 The premium will be charged to prepaid insurance 27 12 28 29 $30,000 30 31 32 General and Administrative Expense Information Fixed cost portion 34 Variable rate (as a percentage of sales) 35 Selling and administrative expenses are paid in the month incurred 33 $60,000 15.00% 36 37 Fixed Asset Information 38 Purchase Land on September 15, 2019 Current Depreciation expense per month 150,000 10,000 39 40 41 Long-Term Loan Interest Information 42 The interest rate on the long-term debt per month is Interest is paid on the principle balance at the beginning of the month 1% 43 44 Minimum Cash Balance $25,000 45 New borrowing must be in $1,000 increments 46 47 Tax Information 48 Income tax rate 25% 49 Taxes are paid in the month after they are incurred (expensed) 50 51 Dividend Information 52 $25,000 Cash dividend declared on September 20, 2019 Cash dividend paid on October 15, 2019 53 54 55
Expert Answer:
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Bobcat Beverage Company Sales budget September October November Total Expected sal... View the full answer
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date:
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