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7-B1 $ refers to New Zealand dollars.
1.
January February March
Schedule a: Sales Budget
Total sales (100% on credit) $62,000 $70,000 $38,000
Schedule b: Cash Collections
Current month's sales $2500 $2500 $6200
Previous month's sales $7500 $18,600 $21000
Second previous month's sales $37200 $42,000 $22800
Total collections $47,200 $63,100 $50,000
January February March
Schedule c: Purchases Budget
Desired ending inventory $6000 $6000 $6000
Cost of goods sold $31,000 $35,000 $19,000
Total needed $37,000 $41,000 $25,000
Beginning inventory $39,050 $8050 $6000
Purchases $-2050.00 $32,950 $19,000
Schedule d: Disbursements
For Purchases
100% of previous month's purchases
March 31 accounts payable
Exhibit I
VICTORIA KITE
Budgeted Statement of Cash Receipts and Disbursements
For the Three Months Ending March 31, 2005
January February March
Cash balance, beginning $5,000 $10000 $15000
Minimum cash balance desired $5000 $5000 $5000
(a) Available cash balance $10,000 $15000 $20,000
Cash receipts and disbursements:
Collections from customers
(Schedule b)
Payments for merchandise
(Schedule c)
Rent
Wages and salaries $15,000 $15,000 $15,000
Miscellaneous expenses $2,500 $2,500 $2,500
Dividends $1,500 - -
Purchase of fixtures
(b) Net cash receipts & disbursements
Excess (deficiency) of cash before
financing (a + b)
Financing:
Borrowing, at beginning of period
Repayment, at end of period
Interest, 10% per annum
(c) Total cash increase (decrease)
from financing
(d) Cash balance, end (beginning
balance + c + b)
Exhibit II
VICTORIA KITE
Budgeted Income Statement
For the Three Months Ending March 31, 2005
Sales (Schedule a)$170,000
Cost of goods sold (Schedule c)$85,000
Gross margin (170,000-85,000)$85,000
Operating expenses:
Rent
Wages and salaries:$45,000
Depreciation:$750
Insurance:$375
Miscellaneous:$7,500
Net income from operations
Interest expense
Net income
