Master Budget - Saskatoon Kite Company

Saskatoon Kite Company

Sales Budget
For the three months ending March 20XX

Jan Feb Mar Total

Units 7,750 9,375 4,750 21,875
Price $ 8.00 $ 8.00 $ 8.00 $ 8.00
Estimated Sales $ 62,000 $ 75,000 $ 38,000 $ 175,000
Company
Master Budget - Saskatoon Kite Company
Saskatoon Kite Company
Purchases Budget
For the three months ending March 20XX
Ending Total Beginning Cost of
Inventory Sales Needed Inventory Purchases Unit Cost Purchases
January 1,130 7,750 8,880 8,880 - 4 -
February 570 9,375 9,945 1,130 8,815 4 35,260
March 580 4,750 5,330 570 4,760 4 19,040

*** Beginning Inventory for January is 8,880

*** Ending inventory is 12% of the next quarter's projected sales
9,375 * 12% = rounded to the nearest ten = 1,130
*** Beginning inventory is the Ending Inventory of the previous Quarter
*** 1st quarter next year projected sales = 4,800 therefore ending inventory for 4th quarter = 580
*** Estimated unit cost $4.00 per unit
Master Budget - Saskatoon Kite Company
Saskatoon Kite Company
Expense Budget
For the three months ending March 20XX

January February March Total

Wages and Salaries 12,000 12,000 12,000 36,000
Depreciation 250 250 250 750
Miscellaneous 2,500 2,500 2,500 7,500
Rent 2,000 2,000 2,000 6,000
Total Expenses 16,750 16,750 16,750 50,250
Company
Master Budget - Saskatoon Kite Company
Saskatoon Kite Company
Budgeted Income Statement
For the three months ending March 20XX
January February March
Operating Revenue
Net Sales 62,000 75,000 38,000
Cost of Merchandise Sold
Beginning Inventory 35,520 4,520 2,280
Purchases - 35,260 19,040
Total Merchandise Available 35,520 39,780 21,320
Less Ending Inventory 4,520 2,280 2,320
Cost of Merchandise Sold 31,000 37,500 19,000
Gross Profit on Operations 31,000 37,500 19,000
Operating Expenses:
Expenses 16,750 16,750 16,750
Income from Operations 14,250 20,750 2,250
Federal Income Tax 3,135 4,565 495
Net Income after Federal Income Tax 11,115 16,185 1,755

*** Income tax estimated at 22%

Company
Master Budget - Saskatoon Kite Company
Saskatoon Kite Company
Cash Receipts Budget
For the three months ending March 20XX

From Sales January February March

December Sales $ 25,000 7,500 2,500
January Sales $ 62,000 37,200 18,600 6,200
February Sales $ 75,000 45,000 22,500
March Sales $ 38,000 22,800
Total Receipts from Sales 44,700 66,100 51,500

*** December Sales (previous year) were $25,000

*** 60% collected during current month
*** 30% collected during the next month
*** 10% collected in the month thereafter
*** Bad debts is negligible
te Company
Master Budget - Saskatoon Kite Company
Saskatoon Kite Company
Cash Payments Budget
For the three months ending March 20XX
January February March
Purchases - 35,260 19,040
Expenses 16,750 16,750 16,750
Dividends 1,500 - -
Equipment Purchases - - 3,000
Total Cash Payments 18,250 52,010 38,790
ompany
Master Budget - Saskatoon Kite Company
Saskatoon Kite Company
Cash Budget
For the three months ending March 20XX
January February March
Cash Balance, Beginning 5,000 31,450 45,540
Cash Receipts 44,700 66,100 51,500
Cash Available 49,700 97,550 97,040
Cash Payments 18,250 52,010 38,790
Cash Balance, Ending 31,450 45,540 58,250
Company
Master Budget - Saskatoon Kite Company
Saskatoon Kite Company
Cash Budget
For the three months ending March 20XX
Assets Liabilities
Cash 58,250.00 Accounts Payable -
Accounts Receivable 11,400.00
Inventory 2,320.00 Equity
Common Stock 9,000.00
Retained Earnings ###
Net Income 1,755.00
Retained Earnings 62,970.00
Total Assets 71,970.00 Total Liabilities and Equity 71,970.00
e Company