AssIgnmcnt nn

ManagcrIa! AccnuntIng
Chaptcr - 9: PrnfIt P!annIng
Dcpt. nf AccnuntIng & InfnrmatInn 5ystcms
Jagannath UnIvcrsIty, Dhaka
(5cctInn - B, 2
nd
Batch)















Grnup - 01
Namc Rn!!
MaIIika O6691O12
Tania O6691O16
Adnan O6691O26
Zahii O6691148
Shavon O6691182
Grnup - 02
Namc Rn!!
Md. SaifuI IsIan O6691O3O
Md. Shahoon Mahnud O6691O52
ZahiiuI IsIan O6691O92
Md. ShafiuI AIan O6691118
}osnin Ioidous O6691192
Grnup - 03
Namc Rn!!
Adhoia O6691O32
Shainin O6691O7O
Naino O6691O94
Sadia O669116O
RuloI O6691162
Munna O66912O6
Chapter 9 (n|ne) rof|t |ann|ng
kev|ew prob|em
Mylar Company manufacLures and sells a producL LhaL has seasonal varlaLlons ln demand
wlLh peak sales comlng ln Lhe Lhlrd quarLer 1he followlng lnformaLlon concerns operaLlons
for ?ear 2 Lhe comlng year and for Lhe flrsL Lwo quarLers of ?ear 3
a 1he company's slngle producL sells for $8 per unlL 8udgeLed sales ln unlLs for Lhe nexL slx
quarLers are as follows
?ear 2 CuarLer ?ear 3 CuarLer_
1 2 3 4 1 2
8udgeLed sales ln unlLs40000 60000 1 00000 30000 70000 80000
b Sales are collecLed ln Lhe followlng paLLern 73 ln Lhe quarLer Lhe sales are made and
Lhe remalnlng 23 ln Lhe followlng quarLer Cn !anuary 1 ?ear 2 Lhe company's balance
sheeL showed $ 63000 ln accounLs recelvable all of whlch wlll be collecLed ln Lhe flrsL
quarLer of Lhe year 8ad debLs are negllglble and can be lgnored
c 1he company deslres an endlng lnvenLory of flnlshed unlLs on hand aL Lhe end of each
quarLer equal Lo 30 of Lhe budgeLed sales for Lhe nexL quarLer Cn uecember 31 ?ear 1
Lhe company had 12000 unlLs on hand
d llve pounds of raw maLerlals are requlred Lo compleLe one unlL of producL 1he company
requlres an endlng lnvenLory of raw maLerlals on hand aL Lhe end of each quarLer Lo 10 of
Lhe producLlon needs of Lhe followlng quarLer Cn uecember 31 ?ear 1 Lhe company had
23000 pounds of raw maLerlals on hand
1he raw maLerlal cosLs $ 080 per pound urchases of raw maLerlal are pald for ln Lhe
followlng paLLern 60 pald ln Lhe quarLer Lhe purchases are made and Lhe remalnlng 40
pald ln Lhe followlng quarLer Cn !anuary 1 ?ear 2 Lhe company's balance sheeL showed
$ 81300 ln accounLs payable for raw maLerlal purchases all of whlch wlll be pald for ln Lhe
flrsL quarLer of Lhe year
kequ|red
repare Lhe followlng budgeLs and schedules for Lhe year showlng boLh quarLerly and LoLal
flgures
1 A sales budgeL and a schedule of expecLed cash collecLlons
2 A producLlon budgeL
3 A dlrecL maLerlals purchases budgeL and a schedule of expecLed cash paymenLs for
maLerlal purchases
5o/ution to keview prob/em
kequ|rement 1 1he sales budgeL ls prepared as follows
ear 2 uarter_____________

1st
uarter
2nd
uarter
3rd
uarter 4th uarter ear 2
8udgeLed Sales ln unlLs 40000 60000 100000 30000 230000
Selllng rlce per unlL $8 $8 $8 $8 $8
1oLal Sales $320000 $480000 $800000 $400000 $2000000

8ased on Lhe budgeLed sales above Lhe schedule of expecLed cash collecLlons ls prepared as
follows ear 2 uarter

1st
quarter
2nd
quarter
3rd
quarter
4th
quarter ear 2
AccounLs 8ecelvable
8eglnnlng 8alance $63000 $63000
llrsL quarLer Sales
($3200007323) 240000 $80000 $320000
Second quarLer Sales
(4800007323) 360000 $120000 480000
1hlrd quarLer Sales
(8000007323) 600000 $200000 800000
Second quarLer
Sales(4000007323) 300000 300000
1oLal Cash CollecLlon $303000 $440000 $720000 $300000 $1963000


kequ|rement 2 8ased on Lhe sales budgeL ln unlLs Lhe producLlon budgeL ls prepared as
follows ear 2 uarter ear 3 uarter

kequ|rement 3 8ased on Lhe producLlon budgeL flgures raw maLerlals wlll need Lo be
purchased as follows durlng Lhe year
ear 2 uarter ear 3
uarter

1 2 3 4 ear 2 1 2
8udgeLed sales
(unlLs) 40000 60000 100000 30000 230000 70000 80000
Add ueslred
endlng lnvenLory
of flnlshed goods 18000 30000 13000 21000 21000 24000
1oLal needs 38000 90000 113000 71000 271000 94000
Less 8eglnnlng
lnvenLory of
flnlshed goods 12000 18000 30000 13000 12000 21000
8equlred
roducLlon 46000 72000 83000 36000 239000 73000
1 2 3 4 ear 2 1
8equlred
producLlon(unlLs)
46000 72000 83000 36000 239000 73000
8aw maLerlals
needed per unlL
x 3 x 3 x 3 x 3 x 3 x 3
roducLlon
needed
230000 360000 423000 280000 1293000 363000
Add ueslred
endlng lnvenLory
of raw maLerlals
36000 42300 28000 36300 36300
1oLal need 266000 402300 433000 316300 1331300
Less 8eglnnlng
lnvenLory of raw
maLerlals
23000 36000 42300 28000 23000
8aw maLerlals Lo
be purchased
243000 366300 410300 288300 1308300
8ased on Lhe raw maLerlal purchases above expecLed cash paymenLs are compuLed as
follows

ear 2 uarter
1 2 3 4 ear 2
CosL of raw
maLerlals Lo be
purchased
aL $080 per
pound
$ 194400

$293200

$328400

$230800

$1046800

AccounLs
ayable
8eglnnlng
balance
81300 81300
1
sL
quarLer
purchases
($194400 x
6040)
116640 77760 194400
2
nd
quarLer
purchases
($293200 x
60 40)
173920 117280 293200
3
rd
quarLer
purchases
($328400 x
60 40)
197040 131360 328400
4
Lh
quarLer
purchases
($230800 x
60)
138480 138480
1oLal cash
dlsbursemenLs
$198140 $233680 $314320 $269840 $1033980








rob|em 91 Schedu|e of expected cash co||ect|on
eaks sales for MldwesL producLs lncorporaLlon occurred ln augusL 1he company's sales
budgeL for Lhe Lhlrd quarLer showlng Lhese peak sales ls glven below
Iu|y August September 1ota|
8udgeLed sale $600000 $900000 $300000 $2000000
lrom pasL experlence Lhe company has learned LhaL 20 of a monLh's sales are collecLed ln
Lhe monLh of sale LhaL anoLher 70 ls collecLed ln Lhe monLh followlng sales and LhaL Lhe
remalnlng 10 ls collecLed ln Lhe 2nd monLh followlng sales 8ad debLs are negllglble and
can be lgnored May sales LoLaled $ 430000 and !une sales LoLaled $ 340000
kequ|red
1 repared a schedule of expecLed cash collecLlon from sales by monLh and ln LoLal for Lhe
3rd quarLer
2 Assume LhaL Lhe company wlll prepare a budgeLed balance sheeL as of SepLember 30
CompuLe Lhe accounLs recelvable as of LhaL daLe
So|ut|on to rob|em 91
kequ|rement1
Schedu|e of Lxpected Cash Co||ect|ons
Iu|y August September 1ota|
May Sales
$430000 10
$43000 $43000
!une Sales
$340000 70 10
$378000 $34000 $432000
!uly Sales
$600000 20 70 10
$120000 $420000 $60000 $600000
AugusL Sales
$900000 20 70
$180000 $630000 $810000
SepLember Sales
$300000 20
$100000 $100000
1oLal Cash CollecLlons $341000 $634000 $790000 $1983000


kequrement2
AccounLs 8ecelvable aL SepLember 30

lrom AugusL Sales
$90000010
$90000
lrom SepLember Sales
$300000(70+10)
$400000
1oLal accounLs recelvable $490000
Lxerc|se 92 roduct|on 8udget L03
CrysLal 1elecom has budgeLed Lhe sales of lLs lnnovaLlve moblle phone over Lhe nexL four
monLhs as follows
Sa|es |n Un|ts
!uly 30000
AugusL43000
SepLember60000
CcLober 30000
1he company ls now ln Lhe process of preparlng a producLlon budgeL for Lhe Lhlrd quarLer
asL experlence has shown LhaL endofmonLh lnvenLorles of flnlshed goods musL equal 10
of Lhe nexL monLh's sales 1he lnvenLory aL Lhe end of !une was 3000 unlLs
kequired repare a producLlon budgeL for Lhe Lhlrd quarLer showlng Lhe number of unlLs
Lo be produced each monLh and for Lhe quarLer ln LoLal
So|ut|on 92
Crysta| 1e|ecom
roduct|on 8udget

LkLkCISL 93 Mater|a|s urchase 8udget LC4
Mlcro roducLs lnc has developed a very powerful elecLronlc calculaLor Lach calculaLor
requlres Lhree small chlps" LhaL cosL $2 each and are purchased from an overseas suppller
Mlcro roducLs has prepared a producLlon budgeL for Lhe calculaLor by quarLers for ?ear 2
and for Lhe flrsL quarLer of ?ear 3 as shown on Lhe nexL page
Iu|y August September uarter
8udgeLed sales ln unlL 30000 43000 60000 133000
Add deslred endlng lnvenLory (10
of followlng monLhs sales)
4300 6000 3000 3000
1oLal needs 34300 31000 63000 140000
Less beglnnlng lnvenLory 3000 4300 6000 3000
8equlred producLlon 31300 46300 39000 137000

ear 2 ear 3
I|rst Second 1h|rd Iourth I|rst
8udgeLed producLlon
ln calculaLors 60000 90000 130000 100000 80000
1he chlp used ln producLlon of Lhe calculaLor ls someLlmes hard Lo geL so lL ls necessary Lo
carry large lnvenLorles as a precauLlon agalnsL sLock ouLs lor Lhls reason Lhe lnvenLory of
chlps aL Lhe end of a quarLer musL be equal Lo 20 of Lhe followlng quarLer's producLlon
needs Some 36000 chlps wlll be on hand Lo sLarL Lhe flrsL quarLer of ?ear 2
kequired
repare a maLerlals purchases budgeL for chlps by quarLer and ln LoLal for ?ear 2 AL Lhe
boLLom of your budgeL show Lhe dollar amounL of purchases for each quarLer and for Lhe
year ln LoLal
So|ut|on to 93 Mater|a|s purchase budget
ear 2 ear 3
1
st
2
nd
3
rd
4
th
1
st

8equlred
roducLlon of
calculaLors
60000 90000 130000 100000 80000
number of chlps
per calculaLor
3 3

3

3

3

roducLlon
needschlps
180000 270000 430000 300000 240000
ear 2
1
sL
2nd 3rd 4Lh ?ear
roducLlon needschlps 180000 270000 430000 300000 1200000
Add ueslred endlng
lnvenLorychlps
34000 90000 60000 48000 48000
1oLal needschlps 234000 360000 310000 348000 1248000
Less 8eglnnlng
lnvenLorychlps
36000 34000 90000 60000 36000
8equlred purchases
chlps
198000 306000 420000 288000 1212000
CosL of purchases aL $2
per chlp
$396000 $612000 $840000 $376000 $2424000

rob|em 9S Manufactur|ng Cverhead 8udget (LC6)
1he dlrecL labor budgeL of krlspln CorporaLlon for Lhe upcomlng flscal year conLalns Lhe
followlng deLalls concernlng budgeLed dlrecL labor hours
arLlcular 1
sL
CuarLer 2nd CuarLer 3rd CuarLer 4Lh CuarLer
8udgeLed dlrecL labor hours

3000 4800 3200 3400
1he company's varlable manufacLurlng overhead raLe ls $173 per dlrecL labor hour and Lhe
company's flxed manufacLurlng overhead ls $33000 per quarLer 1he only noncash lLem
lncluded ln Lhe flxed manufacLurlng overhead ls depreclaLlon whlch ls $13000 per quarLer
kequ|red
1 ConsLrucL Lhe company's manufacLurlng overhead budgeL for Lhe upcomlng flscal year
2 CompuLe Lhe company's manufacLurlng overhead raLe (lncludlng boLh varlable and flxed
manufacLurlng overhead) for Lhe upcomlng flscal year 8ound off Lo Lhe nearesL whole cenL
So|ut|on 9S
1 kr|sp|n Corporat|on
Manufactur|ng Cverhead 8udget

1
sL

CuarLer
2
nd

CuarLer
3
rd

CuarLer
4
Lh

CuarLer ?ear
8udgeLed dlrecL labor hours 3000 4800 3200 3400 20400
varlable overhead raLe 173 173 173 173 173
varlable manufacLurlng overhead 8730 8400 9100 9430 33700
llxed manufacLurlng overhead 33000 33000 33000 33000 140000
1oLal manufacLurlng overhead 43730 43400 44100 44430 173700
Less uepreclaLlon 13000 13000 13000 13000 60000
Cash dlsbursemenLs for
manufacLurlng overhead
$ 28730 $ 28400 $29100 $ 29430 $113700


2 1oLal budgeLed manufacLurlng overhead for Lhe year (a) $1 73700
1oLal budgeLed dlrecL labor hours for Lhe year (b) 20400
redeLermlned overhead raLe for Lhe year (a) (b) $ 861

rob|em97 Cash 8udget Ana|ys|s L08

A Cash budgeL by quarLers ls glven below for a reLall company (000 omlLLed) 1he Company
requlres a mlnlmum cash balance of $3000 Lo sLarL each quarLer

uarter
1st 2nd 3
rd
4th ear
Cash balance beglnnlng $ 9 $ ? $ ? $ ? $ ?
Add collecLlons from cusLomers ? ? 123 ? 391

1oLal cash avallable 83 ? ? ? ?

Less dlsbursemenL

urchase of lnvenLory 40 38 ? 32 ?
CperaLlng expenses ? 42 34 ? 180
LqulpmenL purchases 10 8 8 ? 36
ulvldends 2 2 2 2 ?

1oLal dlsbursemenL ? 110 ? ? ?

Lxcess (deflclency) of cash avallable
Cver dlsbursemenL (3) ? 30 ? ?

llnanclng

8orrowlngs ? 20 __ __ ?
8epaymenLs (lncludlng lnLeresL)* __ __ (?) (7) (?)

1oLal flnanclng ? ? ? ? ?

Cash 8alance endlng $ ? $ ? $ ? $ ? $ ?
_____________
*lnLeresL wlll LoLal $4000 for Lhe year

kequired
llll ln Lhe mlsslng amounL ln Lhe Lable above


So|ut|on 97

art|cu|ars
uarters
1
st
2nd 3
rd
4
th
ear
Cash balance beglnnlng
Add CollecLlons from cusLomers
1oLal cash avallable
Less dlsbursemenLs
urchase of lnvenLory
CperaLlng expenses
LqulpmenL urchases
ulvldends
1oLal dlsbursemenLs
Lxcess (deflclency) of cash avallable over
dlsbursemenLs
llnanclng
8orrowlngs
8epaymenLs (lncludlng lnLeresLs)
1oLal flnanclng
Cash balance endlng
$ 9
_76_
_83_

40
36
10
___2__
__88__

__(3)__

8
__0__
8
$ 3
_90_
_93_

38
42
8
__2__
_110_

_(13)_

20
__0__
20
$ 3
_123_
_130_

36
34
8
__2__
_100_

__30_


_(23)_
(23)
$ 3
_100_
_103_

32
48
10
__2__
__92_

__13_


_ (7)__
(7)
$ 9
_391_
_400_

166
180
36
__8__
_390_

__10_

28
_(32)_
(4)
$ 3 $ 3 $ 3 $ 6 $ 6



rob|em 99 Schedu|es of Lxpected Cash Co||ect|ons and D|sbursements
L02 L04 L08
Calgon roducLs a dlsLrlbuLor of organlc beverages needs a cash budgeL for SepLember
1he followlng lnformaLlon ls avallable
a) 1he cash balance aL Lhe beglnnlng of SepLember ls $9000
b) AcLual sales for !uly and AugusL and expecLed sales for SepLember are as follows
!uly AugusL SepLember
Cash Sales $ 6300 $ 3230 $ 7400
Sales on accounL 20000 30000 40000
1oLal sales $26300 $33230 $47400

Sales on accounL are collecLed over a LhreemonLh perlod ln Lhe followlng raLlo 10
collecLed ln Lhe monLh of sale 70 collecLed ln Lhe monLh followlng sale and 18
collecLed ln Lhe second monLh followlng sale 1he remalnlng 2 ls uncollecLlble
c) urchases of lnvenLory wlll LoLal $23000 for SepLember 1wenLy percenL of a monLh's
lnvenLory purchases are pald for durlng Lhe monLh of purchase 1he accounLs payable
remalnlng from AugusLs' lnvenLory purchases LoLal $16000 all of whlch wlll be pald ln
SepLember
d) Selllng and admlnlsLraLlve expenses are budgeLed aL $13000 for SepLember Cf Lhls
amounL $4000 ls for depreclaLlon
e) LqulpmenL cosLlng $18000 wlll be purchased for cash durlng SepLember and dlvldends
LoLallng $3000 wlll be pald durlng Lhe monLh
f) 1he company musL malnLaln a mlnlmum cash balance of $3000 An open llne of credlL ls
avallable from Lhe company's bank Lo bolsLer Lhe cash poslLlon as needed
kequ|red
1 repare a schedule of expecLed cash collecLlons for SepLember
2 repare a schedule of expecLed cash dlsbursemenLs durlng SepLember for lnvenLory
purchases
3 repare a cash budgeL for SepLember lndlcaLe ln Lhe flnanclng secLlon any borrowlng LhaL
wlll be needed durlng SepLember
So|ut|on to rob|em 99
1
SepLember cash sales $ 7400
SepLember collecLlons on accounL
!uly sales $20000 x 18 3600
AugusL sales $ 30000 x 70 21400
SepLember sales $40000 x 10 4000
1oLal cash collecLlons $36000
2

aymenLs Lo suppllers
AugusL purchases( accounLs payable) $ 16000
SepLember purchases $ 23000 x 20 3000
1oLal cash paymenLs $ 21000

3
CALGCN kCDUC1S
Cash 8udget
Ior the month of September
Cash balance SepLember 1 $ 9000
Add cash recelpLs
CollecLlons from cusLomers 36000
1oLal cash avallable before currenL flnanclng 43000
Less dlsbursemenLs
aymenLs Lo suppllers for lnvenLory $ 21000
Selllng and admlnlsLraLlve expenses 9000
LqulpmenL purchases 18000
ulvldends pald 3000
1oLal dlsbursemenLs 31000
Lxcess(deflclency) of cash avallable over dlsbursemenLs (6000)
llnanclng
8orrowlngs 11000
8epaymenLs 0
lnLeresL 0
1oLal flnanclng 11000
Cash balance Lndlng $ 3000
$13000 $ 4000 $ 9000

rob|em 911 D|rect Mater|a|s and D|rect Labor 8udgets

1he producLlon deparLmenL of rlsLon Company has submlLLed Lhe followlng forecasL of
unlLs Lo be produced by quarLer for Lhe upcomlng flscal year

1
sL

CuarLer
2
nd
CuarLer 3
rd
CuarLer 4
Lh
CuarLer
unlLs Lo be
produced
6000 7000 8000 3000

ln addlLlon Lhe beglnnlng raw maLerlals lnvenLory for Lhe 1
sL
CuarLer ls budgeLed Lo be 3600
pounds and Lhe beglnnlng accounLs payable for Lhe 1
sL
CuarLer ls budgeLed Lo be $11773

Lach unlL requlres Lhree pounds of raw maLerlals LhaL cosLs $230 per pound ManagemenL
deslres Lo end each quarLer wlLh an lnvenLory of raw maLerlals equal Lo 20 of Lhe followlng
quarLer's producLlon needs 1he deslred endlng lnvenLory for Lhe 4
Lh
CuarLer ls 3700
pounds ManagemenL plans Lo pay for 70 of raw maLerlals purchases ln Lhe quarLer
acqulred and 30 ln Lhe followlng quarLer Lach unlL requlres 03 dlrecL laborhour and
dlrecL laborhour workers are pald $12 per hour

kequ|red
1 repare Lhe company's dlrecL maLerlals budgeL and schedule of expecLed cash
dlsbursemenLs for maLerlals for Lhe upcomlng flscal year
2 repare Lhe company's dlrecL labor budgeL for Lhe upcomlng flscal year assumlng LhaL
Lhe dlrecL labor work force ls ad[usLed each quarLer Lo maLch Lhe number of hours
requlred Lo produce Lhe forecasLed number of unlLs produced

So|ut|on to rob|em 911
kequ|red 1
r|ston Company
D|rect Mater|a|s 8udget

1
sL

CuarLer
2
nd

CuarLer
3
rd

CuarLer
4
Lh

CuarLer
?ear
8equlred producLlon (unlLs) 6000 7000 8000 3000 26000
8aw maLerlals per unlL (pounds) x 3 x 3 x 3 x 3 3
roducLlon needs ( pounds) 18000 21000 24000 13000 78000
Add ueslred Lndlng lnvenLory of
raw maLerlals
4200 4800 3000 3700 3700
1oLal needs (pounds) 22200 23800 27000 18700 81700
Less 8eglnnlng lnvenLory of raw
maLerlals (pounds)
3600 4200 4800 3000 3600
8aw maLerlals Lo be purchases 18600 21600 22200 13700 78100
CosL of raw maLerlals Lo be
purchased aL $230 per pound

$ 46300 $ 34000 $ 33300 $ 39230 $ 193230
Schedu|e of expected cash d|sbursements

1
sL

CuarLer
2
nd

CuarLer
3
rd

CuarLer
4
Lh

CuarLer
?ear
AccounLs payable beglnnlng
balance
$ 11773 $ 11773
1
sL
CuarLer urchases
(46300x70 30)
32330 13930 46300
2
nd
CuarLer urchases (34000
x 70 30)
37800 16200 34000
3
rd
CuarLer urchases (33300
x 70 30)
38830 16630 33300
4
Lh
CuarLer urchases (39230
x 70 30)
27473 27473
1oLal cash dlsbursemenLs $ 44323 $ 31730 $ 33030 $ 44123 $ 193230

kequ|red 2
r|ston Company
D|rect Labor 8udget

1
sL
CuarLer 2
nd
CuarLer 3
rd
CuarLer 4
Lh
CuarLer ?ear
8equlred
producLlon(ln unlLs)
6000 7000 8000 3000 26000
ulrecL labor hours
per pound
x 03 x 03 x 03 x 03 x 03
1oLal dlrecL labor
hours needed
3000 3300 4000 2300 13000
ulrecL labor cosL
per hour
$ 1200 $ 1200 $ 1200 $ 1200 $ 1200
1oLal dlrecL labor
cosL
$ 36000 $ 42000 $ 48000 $ 30000 $ 136000













rob|em 913
1he balance sheeL of phoLoLec lnc a dlsLrlbuLor of phoLographlc supplles as of May 31 ls
glven below
nC1C1LC INC
8a|ance Sheet
May 31
Assests

Cash $ 800000
AccounLs recelvable 7200000
lnvenLory 3000000
8ulldlng and equlpmenL neL of uepreclaLlon
30000000
1oLal asseLs $ 61000000

L|ab|||ty and Stockho|der's Lqu|ty

AccounL ayable $ 9000000
noLes ayable 1300000
CaplLal SLock 42000000
8eLalned earnlngs 8300000
1oLal llablllLy and equlLy 61000000


1he Company has noL budgeLed prevlously and for Lhls lL ls llmlLlng lLs masLer budgeL
plannlng horlzon Lo [usL one monLh a head!une 1he company has assembled Lhe followlng
budgeLed daLa relaLlng Lo !une
a) Sales are budgeLed aL $2 30 000 of Lhese Sales $60000 wlll be for cash Lhe remalnder
wlll be credlL Sales Cne half of Lhe credlL sales are collecLed ln monLh followlng All of Lhe
May 31 accounL recelvable wlll be collecLed ln !une
b) urchase of lnvenLory are expecLed Lo LoLal $200000 durlng !une 1hls purchase wlll be
on accounL lorLy percenL of all lnvenLory purchases are pald for ln Lhe monLh All of Lhe
May 31 accounLs payable wlll be pald durlng !une
c) 1he !une 30 lnvenLory balance ls budgeLed aL $40000
d) CperaLlng expenses for !une are budgeLed aL $31000 excluslve of depreclaLlon 1hese
expenses wlll be pald ln cash uepreclaLlon budgeLed aL $2000 for Lhe monLh
e) 1he noLe payable on Lhe May 31 balance sheeL wlll be pald durlng !une 1he company
lnLeresL expense for !une wlll be pald $300 whlch wlll be pald ln cash
f) new ware house equlpmenL cosLlng $9000 wlll be purchased for cash durlng !une
g) uurlng !une 1he Company wlll borrow $18000 from lLs bank by glvlng a new noLe
ayable Lo Lhe bank for LhaL amounL 1he new noLes payable wlll be due ln one year
kequ|red
01 repare a cash budgeL for !une SupporL your budgeL wlLh schedules showlng budgeL
cash recelpLs from sales and budgeLed cash paymenLs for lnvenLory purchases
02 repare a budgeL lncome sLaLemenL for !une use Lhe lncome SLaLemenL formaL as
shown ln Schedule 9
03 repare a budgeL balance sheeL as of !une 30
So|ut|on 913
01(a) Schedu|e for Cash Co||ect|on

(b)Schedu|e for Cash ayment
hototec Inc
Cash 8udget
Ior the Month of Iune
8eglnnlng 8alance ln Cash $ 8000
Add 8ecelpL from CusLomers 227000
1oLal Cash avallable 233000
Less ulsbursemenLs
Cash paymenL ln Supplles 170000
CperaLlng Lxpenses 31000
urchase of warehouse 9000
1oLal cash dlsbursemenLs 230000
Lxcess of recelpLs over dlsbursemenLs 3000
llnanclng
noLes ayable 18000
8epaymenL (noLes) (13000)
lnLeresL (300)
1oLal flnanclng 2300
Lndlng 8alance of cash $ 7300

8alance May 31 $ 7200000
Cash sales 6000000
CollecLed ln !une 9300000
1oLal 22700000
8alance May 31 (cash from accounL payable) $ 9000000
paymenL ln !une 8000000
1oLal 17000000
2 hototec Inc
8udgeted Income Statement
Ior the month of Iune

3 hototec Inc
8udgeted 8a|ance sheet
Iune 30
Assets
Cash $ 730000
AccounLs recelvable (30 190000) 9300000
lnvenLory 4000000
8ulldlng and equlpmenL neL of uepreclaLlon
($300000+$9000$2000)
30700000
1oLal asseLs $ 64930000
LlablllLles LqulLy
AccounL ayable (60 200000) $ 120000
noLes ayable 18000
CaplLal SLock 420000
8eLalned earnlngs ($83000+$6300) 91300
1oLal llablllLy and equlLy $ 649300


Sales
CosL of goods sold
8eglnnlng lnvenLory
Add urchases
Coods avallable for sale
Lndlng lnvenLory
CosL of goods sold
Cross Margln
CperaLlng expenses ($31000+2000$)
neL operaLlng lncome
lnLeresL expense
neL lncome


$30000
200000
230000
40000
$230000





190000
60000
33000
7000
300
$6300
kC8LLM 914 Schedu|e of Lxpected Cash Co||ect|ons Cash 8udget
!odl PorLon resldenL of CresLllne roducLs has [usL approached Lhe company's bank wlLh a
requesL for a $ 30000 90day loan 1he purpose of Lhe lone ls Lo asslsL Lhe company ln
acqulrlng lnvenLorles ln supporL of peak Aprll sales Slnce Lhe company has had some
dlfflculLy ln paylng of lLs loans ln Lhe pasL Lhe loan offlcer has asked for cash budged Lo help
deLermlne wheLher Lhe loan should be made 1he followlng daLa are avallable for Lhe
monLhs Aprll!une durlng whlch Lhe loan wlll be used
a Cn Aprll 1 Lhe sLarL of Lhe loan perlod Lhe cash balance wlll be $26000 AccounLs
recelvable on Aprll l wlll LoLal $131300 of whlch $141000 wlll be collecLed durlng Aprll
$7200 wlll be collecLed ln May 1he remalnder wlll be uncollecLlble
b asL experlence shows LhaL 20 of a monLh's sales are collecLed ln Lhe monLh of sale
73 Lhe monLh followlng sale and 4 ln Lhe second monLh followlng sale 1he oLher 1
represenLs bad debLs LhaL are never collecLed 8udgeL sale and expenses for Lhe perlod
followlng Apr|| May Iune
Sales $200000 $300000 $230000
Merchandlse urchases 120000 180000 130000
ayroll 9000 9000 8000
Lease paymenLs 13000 13000 13000
AdverLlslng 70000 80000 60000
LqulpmenL purchases 8000 _ _
uepreclaLlon 10000 10000 10000
c Merchandlse purchases are pald ln full durlng Lhe monLh followlng purchase AccounLs
payable for merchandlse purchases on March 31 whlch wlll be pald durlng Aprll LoLal
$108000
d ln preparlng Lhe cash budgeL assume LhaL Lhe $30000 loan wlll be made ln Aprll and
repald ln !une lnLeresL on Lhe lone wlll LoLal $1200
kequired
1 repare a Schedule of LxpecLed Cash CollecLlons for Aprll May and !une and for Lhe
Lhree monLh ln LoLal
2 repare Cash 8udge by monLh and ln LoLal for Lhe Lhree monLh perlod
3 lf Lhe company needs a mlnlmum cash balance of $20000 Lo sLarL each monLh Can Lhe
loan be repald as planned? Lxplaln
So|ut|on to rob|em 914
Schedu|e of expected cash co||ect|ons
kequ|rement 1
Apr|| May Iune uarter

AccounLs
8ecelvable
$141000 $7200 $148200
Aprll sales
(20200000)
40000 40000
(73200000) 130000 130000
(4200000) 8000 8000
May sales
(20300000)
60000 60000
(73300000) 223000 223000
!une sales
(2023000)
30000 30000
1oLal Cash
collecLlons
$ 181000 $ 217200 $ 283000 $ 681200
kequ|rement2 Cash 8udget
Apr|| May Iune uarter
Cash 8alance beglnnlng $26000 $27000 $ 20200 $26000
Add recelpLs
CollecLlon from cusLomers
181000 217200 283000 681200
1oLal Avallable 207000 244200 303200 707200
Less ulsbursemenLs
Merchandlse purchases 108000 120000 180000 408000
ayroll 9000 9000 8000 26000
Lease paymenL 13000 13000 13000 43000
AdverLlslng 70000 80000 60000 210000
LqulpmenL purchase 8000 8000
1oLal dlsbursemenLs 210000 224000 263000 697000
Lxcess of recelpLs over
ulsbursemenLs
(3000) 20200 40200 10200
llnanclng
8rownlng 30000 30000
8epaymenL (30000) (30000)
lnLeresL (1200) (1200)
1oLal llnanclng 30000 (31200) (1200)
Cash balance endlng $27000 $20200 $9000 $9000


kequ|rement 3
lf Lhe company needs mlnlmum cash balance of $20000 Lo sLarL each monLh Lhe loan can'L
be repald ln full by !une 30 lf Lhe loan ls repald ls full Lhen Lhe cash balance wlll drop Lo
$9000 on !une30 as shown above Some porLlon of Lhe loan balance wlll have Lo be carrled
over Lo !uly aL whlch Llme Lhe cash lnflow should be sufflclenL Lo compleLe repaymenL

rob|em no 916 Crydon lnc manufacLures an advanced swlm fln for scuba dlvers
ManagemenL ls now preparlng deLalled budgeLs for Lhe Lhlrd quarLer !uly Lhrough
SepLember and has assembled Lhe followlng
lnformaLlon Lo asslsL ln Lhe budgeL preparaLlon
A 1he markeLlng deparLmenL has esLlmaLed sales as follows for Lhe remalnder of Lhe year
(ln palrs of swlm flns)
!uly 6000 CcLober 4000
AugusL 7000 november 3000
SepLember 3000 uecember 3000
1he selllng prlce of Lhe swlm flns ls $30 per palr
8 All sales are on accounL 8ased on pasL experlence sales are expecLed Lo be collecLed ln
Lhe followlng paLLern 40 ln Lhe monLh of sale 30 ln Lhe monLh followlng sale 10
uncollecLlble 1he beglnnlng accounLs recelvable balance (Lxcludlng uncollecLlble amounLs)
on !uly 1 wlll be $130000
C 1he company malnLalns flnlshed goods lnvenLorles equal Lo 10 of Lhe followlng monLh
sales 1he lnvenLory of flnlshed goods on !uly 1 wlll be 600 palrs
u Lach palr of swlm flns requlres 2 pounds gelco compound 1C prevenL shorLages Lhe
company would llke Lhe lnvenLory of gelco compound on hand aL Lhe end of each monLh Lo
be equal Lo 20 of followlng monLh producLlon needs 1he lnvenLory of gelco compound on
!uly 1 2440 pounds
L Celco compound cosL $230 per pound Crydon pays for 60 of lLs purchases ln Lhe monLh
of purchase Lhe remalnder ls pald for ln Lhe followlng monLh 1he accounLs payable balance
for gelco compound purchases wlll be $11400 on !uly 1
kequ|red 1 repare a sales budgeL by monLh and ln LoLal for Lhe Lhlrd quarLer (Show your
budgeL ln boLh palrs of swlm flns and dollars) Also prepare a schedule of expecLed cash
collecLlon by monLh and ln LoLal for Lhe Lhlrd quarLer
2repare a producLlon budgeL for each of Lhe monLh !uly Lhrough CcLober
3 repare a maLerlals purchase budgeL for gelco compound by monLh and ln LoLal for Lhe
Lhlrd quarLer Also prepare a schedule of expecLed cash paymenLs for gelco compound by
monLh and ln LoLal for Lhe Lhlrd quarLer
So|ut|on 916
kequ|rement 1 Sa|es budget for the th|rd quarter
!uly Aug SepL CuarLer
8udgeLed sales(alrs) 6000 7000 3000 18000
rlce per palr $30 $30 $30 $30
8udgeLed sales $300000 $330000 $230000 $900000

Schedu|e of expected cash co||ect|ons from sa|es
kequ|rement 2
roduct|on budget for Iu|y through Cctober
!uly Aug SepL CcLober
LsLlmaLed sales(palrs) 6000 7000 3000 4000
Less ueslred endlng lnvenLory 700 300 400 300
1oLal needs 6700 7300 3400 4300
Less 8eglnnlng lnvenLory 600 700 300 400
8udgeLed producLlon(palrs) 6100 6800 4900 3900

!uly Aug SepL CuarLer
AccounLs recelvable 8eglnnlng
balance
$130000 $130000
!uly sales (300000*40 30) $120000 $130000 $270000
Aug sales (330000*40 60) $140000 173000 $313000
SepL sales (230000* 40) $100000 $100000
Cash collecLlon $230000 $290000 $273000 $813000
kequ|rement 3 1he mater|a|s purchases budget for the th|rd quarter
!uly Aug SepL CuarLer
8equlred producLlon palr(Above) 6100 6800 4900 17800
8aw maLerlals needs per palr *2 *2 *2 *2
roducLlon need(lbs) 12200 13600 9800 33600
Add ueslred endlng lnvenLory 2720 1960 1360 1360
1oLal needs 14920 13360 11360 37160
Less 8eglnnlng lnvenLory 2440 2720 1960 2440
8aw maLerlals Lo be purchased 12480 12840 9400 34720
CosL of raw maLerlals Lo be
purchased aL $23 per lb
31200 32100 23300 86800

1he schedu|e of expected cash d|sbursements
!uly Aug SepL CuarLer
AccounLs payable beglnnlng
balance
$11400 $11400
!uly purchases $18720 $12840 $31200
AugusL urchases $19260 $12480 $32100
SepLember purchases $14100 $14100
1oLal dlsbursemenLs $30120 $31740 $26940 $88800

kC8LLM 917 Cash 8udget w|th Support|ng Schedu|es
!anus producLs lnc ls a merchandlslng company LhaL sells blnders paper and oLher school
supplles 1he company ls plannlng lLs cash needs for Lhe Lhlrd quarLer ln Lhe pasL !anus
producLs has had Lo borrow money durlng Lhe Lhlrd quarLer Lo supporL peak sales of back
Loschool maLerlals whlch occur durlng AugusL 1he followlng lnformaLlon has been
assembled Lo asslsL ln preparlng a cash budgeL for Lhe quarLer

a 8udgeL monLhly lncome sLaLemenLs for !ulyCcLober are as follows
!uly AugusL SepLember CcLober
Sales $40000 $70000 $30000 $43000
CosL of goods sold $24000 $42000 $30000 $27000
Cross margln $16000 $28000 $20000 $18000
Less operaLlng expense
Selllng expense $7200 $11700 $8300 $7300
AdmlnlsLraLlve expense $3600 $7200 $6100 $3900
1oLal expense $12800 $18900 $14600 $13200
neL lncome $3000 $9900 $3400 $4800
lncludes $2000 depreclaLlon each monLh

b Sales are 20 for cash and 80 on credlL
c CredlL sales are collecLed over a Lhree monLh perlod wlLh 10 collecLed ln Lhe monLh of sale 70
ln Lhe monLh followlng sale and 20 ln Lhe second monLh followlng sale May sales LoLaled $30000
and !une sales LoLaled $36000
d lnvenLory purchases are pald for wlLhen13 days 1herefore 30 of a monLhs lnvenLory purchases
are pald for ln Lhe monLh of purchase 1he remalnlng 30 ls pald ln Lhe followlng monLh AccounLs
payable for lnvenLory purchases aL !une 30 LoLal $11000
e 1he company malnLalns lLs endlng lnvenLory levels aL 73 of Lhe cosL of Lhe merchandlse Lo be
sold ln Lhe followlng monLh 1he merchandlse lnvenLory aL !une 30 ls $18000
f Land cosLlng $4300 wlll be purchase ln !uly
g ulvldends of $1000 wlll be declared and pald ln SepLember
h 1he cash balance on !une 30 ls $8000 Lhe company musL malnLaln a cash balance of aL leasL Lhls
amounL aL all Llmes
l 1he company can borrow from lLs bank as needed Lo bolsLer Lhe Cash accounL 8orrowlngs and
repaymenLs musL be ln mulLlples of $1000 All borrowlngs Lake place aL Lhe beglnnlng of a monLh
and all repaymenLs are made aL Lhe end of Lhe monLh 1he annual lnLeresL raLe ls 12 CompuLe
lnLeresL on whole monLhs (1/122/12 and so on)
kequired 1 repare a schedule of expecLed cash collecLlons from sales form sales of Lhe
monLhs !uly AugusL and SepLember and for Lhe quarLer ln LoLal
2 repare Lhe followlng for merchandlse lnvenLory o An lnvenLory purchases budgeL for
each of Lhe monLhs !uly AugusL and SepLember b A schedule of expecLed cash
dlsbursemenLs for lnvenLory for Lhe monLhs !uly AugusL and SepLember and for Lhe quarLer
ln LoLal
3 repare a cash budgeL for Lhe Lhlrd quarLer by monLh as well as for Lhe quarLer ln LoLal
Show borrowlng from Lhe company's bank and repaymenLs Lo Lhe bank as needed Lo
malnLaln Lhe mlnlmum cash balance
So|ut|on 917
kequ|red 1
Schedu|e of expected cash co||ect|ons

Iu|y August September uarter
Cash Sales $8000 $14000 $10000 $ 32000
CredlL Sales
May sales
($300000*80*10)
4800 4800
!une sales
($36000*80*70)
($36000*80*20
20160 3760 23920
!uly sales
($40000*80*10)
($40000*80*70)
($40000*80*20)
3200 22400 6400 32000
AugusL sales
($70000*80*10)
($70000*80*70
3600 39200 44800
SepLember sales
($30000*80*10)
4000 4000
1oLal Cash CollecLlon 36160 47760 39600 143320


kequ|red 2(a)
Inventory purchases budget

Iu|y August September uarter Cctober
CosL of goods
sold
24000 42000 30000 96000 27000
(+)Lndlng
lnvenLory
(73)
31300 22300 20230 20230
1oLal needs 33300 64300 30230 116230
()8eglnnlng
lnvenLory
18000 31300 22300 18000
8equlred Lo
purchase
37300 33000 27730 98230







kequ|red 2(b)
Schedu|e of expected cash d|sbursements

Iu|y August September uarter
A/ 11700 11700
!uly urchase 18730 18730 37300
AugusL
urchase
16300 16300 33000
SepLember
urchase
13873 13873
1oLal Cash
ulsbursemenL
30430 33230 30373 96073
kequ|rement 3
Ianus products|nc
Cash budget
Ior the quarter ended 30 September
!uly AugusL SepLember CuarLer
Cash balance beglnnlng $8000 $8410 $8020 $8000
Add Cash collecLlon from sales 36160 47760 39600 143320
1oLal cash avallable 44160 36170 67620 131320
Less dlsbursemenL
lnvenLory

30430

33230

30373

96073
Land purchases 4300 4300
ulvldend pay 1000 1000
CperaLlng expenses 3600 3200 4100 12900
Selllng expenses 7200 11700 8300 27400

1oLal dlsbursemenLs 43730 32130 43973 141873
Lxcess of cash avallable over
dlsbursemenLs
(1390) 4020 23643 9643
llnanclng
8orrowlngs

10000

4000



14000
8epaymenL (14000) (14000)
lnLeresL (380) (380)
1oLal flnanclng 10000 4000 (14380) (380)
Cash balance $8410 $8020 $9263 $9263

lnLeresL
10000*12*3/12 300
4000*12*2/12 80
1oLal $380

rob|em 919
nordlc company a merchandlslng company prepares lLs masLer budgeL on a quarLerly basls
1he followlng daLa have been assembled Lo asslsL ln preparaLlon of masLer budgeL for
second quarLer lowlng daLa have been assembled Lo asslsL ln preparaLlon of masLer budgeL
for second quarLer

a As of March 31 ( Lhe end of prlor quarLer)Lhe company's balance sheeL showed Lhe
followlng accounL balance


Cash $ 9000
AccounL recelvable 48000
lnvenLory 12600
8ulldlng and LqulpmenL (neL) 214100
AccounL ayable $ 18300
CaplLal sLock 190000
8eLalned Larnlngs 73400
$283700 $283700

b AcLual sales for March and budgeLed sales for Aprll !uly are as follows










c Sales are 20 for cash and 80 on credlL All paymenLs on credlL sales are collecLed
ln Lhe monLh followlng sales 1he accounL recelvable aL March credlL sales
d 1he company's gross proflL raLe ls 40 of sales (ln oLher word cosL of goods sold ls
60 of sales)
e MonLhly expenses are budgeLed as follows salarles and wages $7300 per monLh
shlpplng 6 of sales adverLlslng $6000 per monLh oLher expenses 4 of sales
uepreclaLlon lncludlng depreclaLlon on new asseLs acqulred durlng Lhe quarLer wlll
be $6000 for Lhe quarLer
f AL Lhe end of Lhe each monLh lnvenLory ls Lo be on hand equal Lo 30 of Lhe
followlng monLh's cosL of goods sold
g Palf of a monLh's lnvenLory purchases are pald for ln Lhe monLh of purchase and half
ln Lhe followlng monLh
h LqulpmenL purchase durlng Lhe quarLer wlll be as follows Aprll$11300 May$3000
l ulvldends LoLallng $3300 wlll be declared and pald ln !une
[ 1he company musL malnLaln a mlnlmum cash balance of 8000 An open llne of
credlL ls avallable aL a local bank All borrowlng ls done aL Lhe beglnnlng of a monLh
March (acLual ) $60000
Aprll 70000
May 83000
!une 90000
!uly 30000
and all repaymenLs are made aL Lhe end of a monLh 8orrowlngs and repaymenLs of
prlnclpal musL be ln mulLlples of $1000 lnLeresL ls pald only aL Lhe Llme of paymenL
of prlnclpal 1he annual lnLeresL raLe ls 12 (llgure lnLeresL on whole monLhs eeg
1/12 2/12)

kequ|red
1 Schedules of expecLed cash collecLlon

Aprll May !une 1oLal
Cash sales $14000 ? ? ?
CredlL sales 48000 ? ? ?
1oLal collecLlon $62000 ? ? ?

2 a) lnvenLory purchases budgeL

Aprll May !une 1oLal
8udgeLed cosL of goods sold $42000 $31000
+ deslred endlng lnvenLory 13300
1oLal needs 37300
Less beglnnlng lnvenLory 12600
8equlred purchases $44700


b) Schedule of cash dlsbursemenLs for purchases
Aprll May !une 1oLal
lor March purchases $18300 $18300
lor Aprll purchases 22330 22330 44700
lor May purchases
lor !une purchases
1oLal cash dlsbursemenLs for purchases $40630

3 schedule of cash dlsbursemenL for operaLlng expenses

Aprll May !une 1oLal
Salarles and wages $7300
Shlpplng 4200
AdverLlslng 6000
CLher expenses 2800
1oLal cash dlsbursemenL for operaLlng
expenses
$20300





4 Cash budgeL

Aprll May !une 1oLal
Cash balance beglnnlng $9000
Add cash collecLlons 62000
1oLal cash avallable 71000
Less dlsbursemenL
lor lnvenLory purchases

40630

lor operaLlng expenses 20300
lor equlpmenL purchases 11300
lor dlvldends
1oLal dlsbursemenL 72630
Lxcess (deflclency) of cash (1630)
llnanclng
LLc


3 repare an lncome sLaLemenL for quarLer endlng !une30 as shown ln schedule 9 ln
Lhe ChapLer
6 repare a balance sheeL as of !une 30

So|ut|on 919
k1
Nord|c company
Lxpected cash co||ect|on

Apr|| May Iune 1ota|
1oLal sales 70000

83000

90000

243000

AccounL recelvable (beg 8al) 48000 48000
Aprll sales 14000 36000 70000
May sales 17000 68000 83000
!une sales 18000 18000
62000 73000 86000 221000

k2 a)
Nord|c company
Inventory purchases budget
Apr|| May Iune 1ota|
8udgeLed cosL of goods sold $42000 $31000 34000 147000
+ deslred endlng lnvenLory 13300 16200 9000 40300
1oLal needs 37300 67200 63000 187300
Less beglnnlng lnvenLory 12600 13300 16200 44100
8equlred purchases $44700 31900 46800 143400
b Nord|c company
Schedu|e for cash d|sbursement for purchases

Aprll May !une 1oLal
lor March purchases $18300 $18300
lor Aprll purchases 22330 22330 44700
lor May purchases 23930 23930 31900
lor !une purchases 23400 23400
1oLal cash dlsbursemenLs for purchases $40630 48300 49330 138300

k3
Nord|c company
Schedu|e for cash d|sbursement for operat|ng expenses
Aprll May !une 1oLal
Salarles and wages $7300 7300 7300 22300
Shlpplng 4200 3100 3400 14700
AdverLlslng 6000 6000 6000 18000
CLher expenses 2800 3400 3600 9800
1oLal cash dlsbursemenL for operaLlng
expenses
20300 22000 22300 63000

k4
Nord|c company
Schedu|e for cash budget
Aprll May !une 1oLal
Cash balance beglnnlng $9000 8330 8030 9000
Add cash collecLlons 62000 73000 86000 221000
1oLal cash avallable 71000 81330 94030 230000
Less dlsbursemenL
lor lnvenLory purchases

40630

48300

49330

138300
lor operaLlng expenses 20300 22000 22300 63000
lor equlpmenL purchases 11300 3000 14300
lor dlvldends 3300 3300
1oLal dlsbursemenL 72630 73300 73330 221300
Lxcess (deflclency) of cash (1630) 8030 18700 8700
llnanclng
8orrowlng

10000

10000
Less repaymenL (10000) (10000)
Less lnLeresL (300) (300)
1oLal llnanclng 10000 (10300) (10300)
Cash balance endlng 8330 8030 8400 8400

kS
Nord|c company
Income statement
Ior end of month Iune 30
Sales
Less cosL of goods sold
8eglnnlng lnvenLory 12600
Add purchases 143400
Coods avallable for sale 136000
Less endlng lnvenLory 9000
$ 243000


147000
Cross margln 98000
Less CperaLlng expenses
Salarles wages 22300
Shlpplng ex 14700
AdverLlsemenL 18000
CLher expenses 6000
uepreclaLlon 9800



71000
neL operaLlng lncome 27000
Less lnLeresL expense 300
neL lncome $26700



k6
Nord|c company
8a|ance sheet
Ior end of month Iune 30
Asset
Cash

8400
AccounL recelvable 72000
lnvenLory 9000
8ulldlng equlpmenL
Add purchases

Less depreclaLlon
214100
14300
228600
6000



222600
1oLal asseL $312000
Lqu|ty ||ab|||ty
AccounL payable

23400
CaplLal sLock 190000
8eLaln earnlng 98600 288600
1oLal llablllLy $312000


**

8eLaln earnlngs beglnnlng $ 73400
Add neL operaLlng lncome 26700
1oLal 102100
Less dlvldend 3300
8eLaln earnlngs endlng $98600