7-B1 $ refers to New Zealand dollars. 1. January February March Schedule a: Sales Budget $62000 $70000 $38000 Total sales (100% on credit) Schedule b: Cash Collections Current month's sales 37200 42000 22800 7000 Previous month's sales 7500 18600 21000 3800 Second previous month's sales 2500 2500 6200 11400 Total collections 47200 63100 50000 22200 January February March Schedule c: Purchases Budget Desired ending inventory 6000 6000 6000 Cost of goods sold 31000 35000 19000 Total needed 37000 41000 25000 Beginning inventory 35050 8050 6000 Purchases (-2050) 32950 25000 Schedule d: Disbursements for Purchases 100% of previous month's purchases 35550 0 22100 March 31 accounts payable 25000 Exhibit I VICTORIA KITE Budgeted Statement of Cash Receipts and Disbursements For the Three Months Ending March 31, 2005 January February March Cash balance, beginning 5000 5100 27467 Minimum cash balance desired 5000 5000 5000 (a) Available cash balance 0 100 22467 Cash receipts and disbursements: Collections from customers 47200 63100 50000 (Schedule b) Payments for merchandise 35550 0 22100 (Schedule c) Rent 8050 250 250 Wages and salaries 15000 15000 15000 Miscellaneous expenses 2500 2500 2500 Dividends 1500 0 0 Purchase of fixtures 0 0 3000 (b) Net cash receipts & disbursements (-15400) 45450 7150 Excess (deficiency) of cash before (-15400) 45450 29617 financing (a + b) Financing: Borrowing, at beginning of period 15500 0 0 Repayment, at end of period 0 15500 0 Interest, 10% per annum 0 2583 0 (c) Total cash increase (decrease) 15500 (-18083) 0 from financing (d) Cash balance, end (beginning 5100 27467 29617 balance + c + b) Exhibit II VICTORIA KITE Budgeted Income Statement For the Three Months Ending March 31, 2005 Sales (Schedule a) 170000 Cost of goods sold (Schedule c) 85000 Gross margin 85000 Operating expenses: Rent 8550 Wages and salaries 45000 Depreciation. 750 Insurance 375 Miscellaneous 7500 Net income from operations 6825 Interest expense 2583 Net income 4242 Exhibit III VICTORIA KITE Budgeted Balance Sheet March 31, 2005 Assets Current assets: Cash (Exhibit I) Accounts receivable Merchandise inventory (Schedule c) Unexpired insurance Fixed assets, net: $12,500 + $3,000 - $750 Total assets Liabilities and Stockholders' Equity Liabilities: Accounts payable (Schedule d) Rent payable. Dividends payable Stockholders' equity Total liabilities and stockholders' equity I have done most of it I just need help the budgeted balance sheet