calculation for repayment and total financing
I'm working on a practice problem regarding Master Budget. I was able to complete almost all the schedule except for the Cash Budget (Part 4). I couldn't figure out why my calculation for repayment and total financing were wrong in the month of March. I would like a detailed explanation as to why it was wrong and how I could come up with the correct amount for repayment and total financing in the month of March. Attached is my spreadsheet. Highlighted boxes are the areas that I got wrong. Thank you.
Solution Given Cash Sale 40% Credit Sale 60% 1. Schedule of Expected Cash Collections Jan Feb Mar Ist Qtr. Cash sales $ 30,600.00 $ 35,480.00 $ 36,880.00 $ 102,960.00 Cash collections from credit sales : December January 39360.00 0.00 0.00 39360.00 Febuary 0.00 45900.00 0.00 45900.00 March 0.00 0.00 53220.00 53220.00 Total cash collections $ 69,960.00 $ 81,380.00 $ 90,100.00 $ 241,440.00 ** Working Notes Sales Budget For the Quartyer ended 31st March XXXX Jan Feb Mar Ist Qtr. Sales on account 45,900 53,220 55,320 154,440 Cash sales 30,600 35,480 36,880 102,960 Total sales 76,500 88,700 92,200 257,400 2 a) Picanuy Corporation Merchandise Purchase Budget For the Quartyer ended 31st March XXXX Jan Feb Mar Ist Qtr. COGS 53,550 62,090 64,540 180,180 Add: Closing Inventory 12,418 12,908 8,470 8,470 Total Required Inventory 65,968 74,998 73,010 188,650 Less : Opening Inventory 10,710 12,418 12,908 10,710 Purchases Value 55,258 62,580 60,102 177,940 2 b) Schedule of Expected Cash Disbursements—Merchandise Purchases Jan Feb Mar Ist Qtr. Cash payments for purchases December Purchases $ 32,280.00 $ - $ - $ 32,280.00 January Purchases 13,814.50 41443.50 0.00 55258.00 February Purchases 0.00 15,645.00 46,935.00 62580.00 March Purchases 0.00 0.00 15,025.50 15025.50 Total Disbursements $ 46,094.50 $ 57,088.50 $ 61,960.50 $ 165,143.50 3 Picanuy Corporation Expected Cash Disbursements For the Quartyer ended 31st March XXXX Jan Feb Mar Ist Qtr. Selling and Administrative Expenses : Commision $ 16,510.00 $ 16,510.00 $ 16,510.00 $ 49,530.00 Rent 2000.00 2000.00 2000.00 6000.00 Other Expenses 6120.00 7096.00 7376.00 20592.00 Total Selling & Admin. Expense $ 24,630.00 $ 25,606.00 $ 25,886.00 $ 76,122.00 4 Picanuy Corporation Cash Budget for thequarter ended 31st March 2012 Jan Feb Mar Ist Qtr. Opening Balance of Cash $ 6,000.00 $ 5,445.50 $ 5,141.00 $ 6,000.00 Receipt from Debtors 69960.00 81380.00 90100.00 241440.00 Total Cash Available 75960.00 86825.50 95241.00 247440.00 Less: Cash disbursement For Inventory 46094.50 57088.50 61960.50 165143.50 For Operating Expenses 24630.00 25606.00 25886.00 76122.00 For Equipment 3790.00 8990.00 0.00 12780.00 Total Cash Disbursement 74514.50 91684.50 87846.50 254045.50
Answers
Status NEW
Posted 22 Dec 2017 07:12 AM
My Price 10.00
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