Student Name: Class: Problem 09-19 Requirement 1: MINDEN COMPANY Schedule of cash receipts: Cash sales-May Collections on accounts

receivable: April 30 balance May sales Total cash receipts Schedule of cash payments for purchases: April 30 accounts payable balance May purchases Total cash payments

MINDEN COMPANY Cash Budget For the Month of May Cash balance, beginning Add receipts from customers Total cash available Less disbursements: Purchase of inventory Selling and administrative expenses Purchases of equipment Total cash disbursements Excess of receipts over disbursements Financing: Borrowings-note Repayments-note Interest Total financing Cash balance, ending

Requirement 2: MINDEN COMPANY Budgeted Income Statement For the Month of May Sales Cost of goods sold: Beginning inventory Add purchases Goods available for sale Ending inventory Cost of goods sold Gross margin Selling and administrative expenses

Student Name: Class: Problem 09-19 Net operating income Interest expense Net income

Requirement 3: MINDEN COMPANY Budgeted Balance Sheet May 31 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Equity Accounts payable Note payable Capital stock Retained earnings Total liabilities and equity

Given Data P09-19: MINDEN COMPANY Balance Sheet April 30 Assets Cash 9,000 Accounts receivable 54000 Inventory 30000 Buildings and equipment, net of depreciation 207000 Total assets 300,000 Liabilities and Stockholders' Equity Accounts payable 63,000 Note payable 14500 Capital stock, no par 180000 Retained earnings 42500 Total liabilities and stockholders' equity 300,000 Budgeted Data relating to May: Budgeted sales 200,000 Budgeted sales in cash (remainder credit) 60,000 Percent of credit sales collected in same month 50% Expected inventory purchases during May 120,000 Purchases paid for in cash in month purchased 40% May accounts payable paid in June 100% Budgeted inventory balance, May 31 40,000 Budgeted sellin and admin. expenses, May 31 51,000 Budgeted depreciation, May 31 2,000 Existing note payable paid in May 100% Interest expense for May 100 Equipment purchases in May 6,500 New note 20,000

Student Name: Class: Problem 09-26 WESTEX PRODUCTS Requirement 1a: Schedule of expected cash collections Next Year's Quarter Second Third

First Current year - Fourth quarter sales: Next year - First quarter sales: Next year - Second quarter sales: Next year - Third quarter sales: Next year - Fourth quarter sales: Total cash collections

Fourth

Total

Requirement 1b: Schedule of expected cash disbursements for merchandise purchases for next year Next Year's Quarter Second Third

First Current year - Fourth quarter purchases: Next year - First quarter purchases: Next year - Second quarter purchases: Next year - Third quarter purchases: Next year - Fourth quarter purchases: Total cash payments

Fourth

Total

Requirement 2: Budgeted selling and administrative expenses for next year Quarter Second Third

First Budgeted sales Variable expense rate Variable expenses Fixed expenses Total expenses Less depreciation Cash disbursements

Fourth

Year

Requirement 3: Cash budget for next year Quarter Second Third

First Cash balance, beginning Add collections from sales Total cash available Less disbursements: Merchandise purchases Selling and administrative expenses Dividends Land Total disbursements Excess (deficiency) of receipts over disbursements Financing: Borrowings Repayments Interest Total financing Cash balance, ending

Fourth

Year

cash disbursements for merchandise purchases for next year

Given Data P09-26: WESTEX PRODUCTS Budgeted Sales and Merchandise Purchases: Merchandise Purchases 126,000 186,000 246,000 305,000 126,000

Sales Current year Fourth quarter Next year First quarter estimated Second quarter estimated Third quarter estimated Fourth quarter estimated

200,000 300,000 400,000 500,000 200,000

Additional information: Percentage of sales collected in same quarter Percentage of sales collected in quarter following sales Percentage of sales deemed uncollectible Percentage of merchandise purchases paid in same quarter Percentage of merchandise purchases pain in following quarter Budgeted quarterly operating expenses for next year plus percentage of sales Amount of depreciation budgeted each quarter Dividends to be paid each quarter Cash purchase of land in second quarter Cash purchase of land in third quarter Cash account balance at end of current year Bank loan borrowing increments Maximum loan balance allowed Interest rate per quarter on bank loans Current outstanding loan balance

65% 33% 2% 80% 20% 50,000 15% 20,000 10,000 75,000 48,000 10,000 1,000 100,000 2.5% -

Student Name: Class: Case 09-30 EARRINGS UNLIMITED Budgets April May June Quarter Requirement 1a. Sales budget: Budgeted sales in units 65000 100000 50000 215000 Selling price per unit $10 $10 $10 $30 Total sales $650,000 $1,000,000 $500,000 $2,150,000 Correct! Correct! Correct! Correct! Requirement 1b. Schedule of expected cash collections: February sales March sales April sales May sales June sales Total cash collections Requirement 1c. Merchandise purchases budget: Budgeted unit sales Add desired ending inventory Total needs Less beginning inventory Required purchases in units Unit cost Required dollar purchases Requirement 1d. Budgeted cash disbursements for merchandise purchases: Accounts payable April purchases May purchases June purchases Total cash disbursements

Requirement 2: EARRINGS UNLIMITED Cash Budget For the Three Months Ending June 30 April Cash balance, beginning Add receipts from customers Total cash available Less disbursements: Merchandise purchases Advertising Rent Salaries Commissions (4% of sales) Utilities Equipment purchases May June Quarter

Student Name: Class: Case 09-30 Dividends paid Total disbursements Excess (deficiency) of receipts over disbursements Financing: Borrowings Repayments Interest Total financing Cash balance, ending

Requirement 3: EARRINGS UNLIMITED Budgeted Income Statement For the Three Months Ending June 30 Sales in units Sales Variable expenses: Cost of goods sold Commissions Contribution margin Fixed expenses: Advertising Rent Salaries Utilities Insurance Depreciation Net operating income Less interest expense Net income

EARRINGS UNLIMITED Budgeted Balance Sheet June 30 Assets Cash Accounts receivable Inventory Prepaid insurance Property and equipment, net Total assets Liabilities and Equity Accounts payable, purchases Dividends payable Capital stock, no par

Student Name: Class: Case 09-30 Retained earnings Total liabilities and equity Accounts receivable at June 30: May sales June sales Total Retained earnings at June 30: Balance, March 31 Add net income Total Less dividends declared Balance, June 30

Given Data Case 09-30: EARRINGS UNLIMITED Minimum ending cash balance Selling price Recent and forecast sales: January (actual) February (actual) March (actual) April May June July August September Desired ending inventories (percentage of next month's sales) Cost of earrings Purchases paid as follows: In month of purchase In following month Collection on sales: Sales collected current month Sales collected following month Sales collected 2nd month following Variable monthly expenses: Sales commissions (% of sales) Fixed monthly expenses: Advertising Rent Salaries Utilities Insurance (12 months paid in November) Depreciation Equipment purchased in May Equipment purchased in June Dividends declared each quarter Balance sheet at March 31: Assets Cash Accounts receivable Inventory Prepaid insurance Property and equipment (net) Total assets $50,000 $10

20,000 26,000 40,000 65,000 100,000 50,000 30,000 28,000 25,000 40% 4

50% 50%

20% 70% 10%

4%

200,000 18,000 106,000 7,000 3,000 14,000 16,000 40,000 15,000

$74,000 346000 104000 21000 950000 $1,495,000

Given Data Case 09-30: Liabilities and Stockholders' Equity Accounts payable $100,000 Dividends payable 15000 Capital stock 800000 Retained earnings 580000 Total liabilities and stockholders' equity $1,495,000 Agreement with Bank: Borrowing increments Interest rate per month Repayment increments Total of interest paid each quarter Required minimum cash balance

$1,000 1% $1,000 100% $50,000