Group Project Final Paper Break-down and explain the components of the cash budget for three months, using the data from the report as examples. Break-do

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Group Project Final Paper Break-down and explain the components of the cash budget for three months, using the data from the report as examples.
Break-down and explain the components of the budgeted income statement, using the data from the report as examples.
Break-down and explain the components of the budgeted balance sheet, using the data from the report as examples.
Assess why a company would create a Master Budget for managerial decision making, use the reports that you created as examples. Charts

Charts:
Charts are a way to easily visualize your data sets in order to present findings or to gain further insights.
There are a wide variety of chart types that you can utilize in Microsoft Excel. The most common types used are bar/column charts to show comparisons of values and line charts to show trends. Below is an example of how to set up a chart:
1. The first step is to select the data you would like to chart out. In general, you want to format your data in a way that you have column headers like days and then row headers such as your cost or company. See the below as an example:

 
2. Highlight the data you what to create a chart of:

3. Go to the “Insert” tab and you will see a section titled “Charts”
4. Click on “Recommended Charts”, which will generate an “Insert Chart” window
a. Within this window you have two tabs: “Recommended Charts” and “All Charts”
1. The “Recommended Charts” tab will give you several charts that are recommended for the specific data set you have chosen
2. The “All Charts” tab will let you dictate the type of chart you want. You will see that on this tab, the left-hand side shows all the different chart types and as you click on them you will see the right-hand pane generate the different subtypes of charts available for that group.
b. On the “All Charts” tab, choose the “Line” option from the left-hand pane
1. On the right-hand side look through the various options. If we want to show a trend line with the data points marked, we would choose the option titled “Line with Markers”. Chose this option and click “OK”
2. The below chart will generate

5. You will see here that this is a default chart. You can make many changes such as the following:
a. Double click in the “Chart Title” and add your own chart name
b. You can right click on either the X (here Day 1, Day 2,….) or Y (here 0-100) axes and click “Format Axis” pane will generate giving you a plethora of options to modify the axes
c. Another set of easy tools is to click on the chart and within the “Chart Design” ribbon click on “Add Chart Element” within the “Chart Layouts” section
1. Within this section you can add titles to the axes, add other labels, create legends, etc.

Budget Launch Page

Data Analytics Budgeting

Beginning Balance Sheet

Master Budget

Budgeting Assumptions

Sales Budget

Merchandise Purchases Budget

Selling & Admin Budget

Cash Budget

Budgeted Income Statements

Budgeted Balance Sheets

Cash Flow vs. Net Income

Beginning Balance Sheet

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Balance Sheet

Beginning of the Quarter

Assets

Current assets:

Cash $ 89,000

Accounts receivable 708,700.00

Merchandise inventory 149,600.00

Total current assets $ 947,300

Plant and equipment:

Buildings and equipment 1,100,000.00

Prepaid insurance 28,500.00

Plant and equipment, net 1,128,500.00

Total assets $ 2,075,800

Liabilities and Stockholders’ Equity

Accounts payable $ 115,000

Dividends payable 26,250

Common stock 1,100,000.00

Retained earnings 834,550.00

Total liabilities and stockholders’ equity 2,075,800

Budgeting Assumptions

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Budgeting Assumptions

For The Second Quarter

All 12 Months April May June

Sales Budget:

Budgeted unit sales 68,000.00 103,000.00 53,000.00

Selling price per unit $ 19.00

Percentage of sales that are collected in the month of sale 20%

Percentage of sales that are collected in the month after sale 70%

Percentage of sales that are collected in the second month after sale 10.00%

Merchandise Purchases Budget:

Cost of goods sold as a percent of sales 29%

Percentage of next month’s cost of goods sold in ending merchandise inventory 40%

Percentage of merchandise purchases that are paid for in the month of purchase 50%

Percentage of merchandise purchases that are paid for in the month after purchase 50.00%

Selling and Administrative Expense Budget:

Variable selling and administrative expense per unit $ 0.76

Fixed selling and administrative expense per month:

Advertising $ 350,000

Salaries $ 136,000

Insurance $ 4,500

Rent & Utilities $ 47,500

Depreciation $ 29,000

Cash Budget

Minimum cash balance $ 65,000

Simple interest rate per month 1%

Sales Budget

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Sales Budget

For the Second Quarter

April May June Total

Budgeted unit sales 68,000.00 103,000.00 53,000.00 224,000.00

Selling price per unit $ 19.00 $ 19.00 $ 19.00 $ 19.00

Sales $ 1,292,000 $ 1,957,000 $ 1,007,000 $ 4,256,000

Schedule of Expected Cash Collections

April May June Total

Cash collections from sales two months’ prior $ 55,100.00 $ 81,700.00 $ 129,200.00

Cash collections from prior month’s sales $ 571,900 $ 904,400 $ 1,369,900

Cash collections from current month’s sales 258,400.00 391,400.00 201,400.00

Total cash collections $ 885,400 $ 1,377,500 $ 1,700,500 $ 3,963,400

Merchandise Purchases Budget

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Merchandise Purchases Budget

For This Year

April May June Quarter

Budgeted unit sales 68000 103000 53000 224000

Add desired ending merchandise inventory 41200 21200 13200 13200

Total needs 109,200.00 124200 66,200.00 237200

Less beginning merchandise inventory 27,200.00 41,200.00 21,200.00 27,200.00

Required merchandise units $ 82,000.00 $ 83,000.00 $ 45,000.00 210000

$ 5.50 $ 5.50 $ 5.50 $ 5.50

Required merchandise purchases $ 451,000.00 $ 456,500.00 $ 247,500.00 $ 1,155,000.00

Schedule of Expected Cash Disbursements for Merchandise Purchases

April May June Quarter

Cash disbursements related to prior month’s purchases $ 115,000 $ 225,500 $ 228,250

Cash disbursements related to current month’s purchases 225,500.00 228,250.00 123,750.00

Total cash disbursements for merchandise purchases $ 340,500 $ 453,750 $ 352,000 $ 1,146,250

Cash Budget

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Cash Budget

April-June

April May June Quarter

Beginning cash balance 89,000 65,470 353,940 89,000

Collections from customers 885,400 1,377,500 1,700,500 3,963,400

Total cash available 974,400 1,442,970 2,054,440 4,052,400

Less cash disbursements:

Merchandise purchases 340,500 453,750 352,000 1,146,250

Advertising 350,000 350,000 350,000 1,050,000

Rent 33,000 33,000 33,000 99,000

Salaries 136,000 136,000 136,000 408,000

Commissions 51,680 78,280 40,280 170,240

Utiities 14,500 14,500 14,500 43,500

Equiment Purchases 0 23,500 55,000 78,500

Dividends Paid 26,250 0 0 26,500

Total cash disbursements 951,930 1,089,030 980,780 3,021,740

Excess (deficiency) of cash available over disbursements 22,470 353,940 1,073,660 1,030,660

Financing:

Borrowings (at the beginnings of months) 43,000 0 0 43,000

Repayments 0 0 -43,000 -43,000

Interest (at 1% per month) 0 0 -1,290 -1,290

Total financing 43,000 0 -44,290 -1,290

Ending cash balance 65,470 353,940 1,029,370 1,029,370

Mininmum Cash Requirement 65,000 65,000 65,000 65,000

Budgeted Income Statements

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Budgeted Income Statements

For the Three Month Period Ending June 30

(Contribution costing basis)

Sales 4,256,000

Variable expenses:

Commission $ 170,240

Cost of goods sold 1,232,000.00

1,402,240

Contribution margin 2,853,760

Fixed expenses:

Advertising 1,050,000.00

Rent 99,000.00

Salaries 408,000.00

Utilities 43,500.00

Depreciation 87,000.00

Insurance 13,500.00

1,701,000

Net operating Income 1,152,760.00

Interest expense 1,290.00

Net Income 1,151,470

Budgeted Balance Sheets

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Budgeted Balance Sheets

June 30, 2021

Assets

Cash 1,029,370

Accounts Receivable $ 1,001,300

Plant and equipment: $ 1,091,500

Inventory $ 72,600

Prepaid insurance $ 15,000

Total assets $ 3,209,770

Liabilities and Stockholders’ Equity

Accounts payable $ 123,750

Dividends payable $ 26,250

Common stock 1,100,000

Retained earnings 1,959,770

Total liabilities and stockholders’ equity 3209770.00

Day 1 Day 2 Day 3
Cost A 55 65 50
Cost B 88 80 85
Cost C 60 70 65

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