1. Prepare Quarterly Master Budget (Develop forecasts for sales and other directly or indirectly linked items.

• Provide rationale for your forecast. Show the forecast in a table form

HomeDepot
Sales Budget- Building Material
1st Quarter
		January	February	March	Total
Unit to be sold		10000	20000	30000	40000
sales price per unit		10	10	10	10
Sales $		100,000	200,000	300,000	400,000
Cash Receipts
From sales this month (70%)		$ 70,000	$ 140,000	$ 210,000	$ 280,000
From sales last month (30%)		$ 30,000	$ 60,000	$ 90,000	$ 120,000
Total Cash Receipts		$ 100,000	$ 200,000	$ 300,000	$ 400,000
Purchase Budget
For the 1st Quarter
		January	February	March	Total
Cost Of Goods Sold (50%)		$ 50,000	$ 100,000	$ 150,000	$ 200,000
Desired Ending Inventory (25%)		$ 25,000	$ 37,500	$ 50,000	$ 50,000
Inventory Needs		$ 75,000	$ 137,500	$ 200,000	$ 412,500
Less: Beginning Inventory		$ 5,000	$ 25,000	$ 37,500	$ 5,000
Total Purchases		$ 58,845	$ 112,500	$ 162,500	$ 667,500
Cash Payments
For purchases this month (60%)		$ 35,307.00	$ 67,500.00	$ 97,500.00	$ 200,307.00
For purchases last month (40%)		$ 13,414.00	$ 23,538.00	$ 45,000.00	$ 65,000.00
Total cash payments		$ 48,721.00	$ 91,038.00	$ 142,500.00	$ 282,259.00
Selling Expense Budget
Dollars in millions		January	February	March	Total
operating Expenses	18% of sales	$18,000.00	$36,000.00	$54,000.00	$108,000.00
Interest Expense	1% of sales	$1,000.00	$2,000.00	$3,000.00	$6,000.00
Miscellaneous	3% of sales	$3,000.00	$6,000.00	$9,000.00	$18,000.00
Total Selling		$22,000.00	$44,000.00	$66,000.00	$132,000.00
Administrative expense Budget
Depreciation expense	1.6% of sales	$1,600.00	$3,200.00	$4,800.00	$9,600.00
Salary related expenses		$861.00	$601.00	$852.00	$2,314.00
Miscellenous expense	5% of sales	$5,000.00	$10,000.00	$15,000.00	$30,000.00
insurance & utiliy		$1,200.00	$1,520.00	$1,300.00	$4,020.00
		$8,661.00	$15,321.00	$21,952.00	$23,982.00
Cash Budget		January	February	March	Total
Budgeted Sales		100,000	200,000	300,000	400,000
Beginning Cash Balance		14652	16155	14385	14652
Collection on sales
cash sales	50% of sales	50000	100000	150000	300000
Credit Sales
current month	30% of credit sales	15000	30000	45000
prior month	70% of credit sales	40000	35000	70000	145000
Total		55000	65000	115000	235000
cash available for operation		69652	81155	129385	249652
Disbursement
purchases
current month	20% of purchases	14711.25	28125	40625
prior month	80% of purchases	47076	90000	130000
total		61787.25	118125	170625	350537.25
Selling expenses		$22,000.00	$44,000.00	$66,000.00	$132,000.00
General and administrative expense		$6,200.00	$11,520.00	$16,300.00	$34,020.00
Taxes		3213			3213
total		$93,200.25	$173,645.00	$252,925.00	$519,770.25
Excess (deficiency)		$31,413.00	$55,520.00	$82,300.00	$169,233.00
short term financing		2300			2300
repayments		5066	4880	2732
cash balance ending		$26,347.00	$50,640.00	$79,568.00	$517,470.25