Please solve the last 4 sections Haas Company is a retail company that specializ
ID: 2512587 • Letter: P
Question
Please solve the last 4 sections
Haas Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2015. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks Required a. & b. October sales are estimated to be $250,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 8 percent per month. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a sales budget and a schedule of cash receipts. October NovemberDecember Sales Budget Cash sales Sales on account Total budgeted sales $ 100,000$108,000 $ 116,640 174,960 $ 250,000 $ 270,000 291,600 150,000 162,000 Schedule of Cash Receipts Current cash sales Plus collections from A/R Total collections $ 100,000 $ 108,000 116,640 162,000 $ 100,000 $258,000 $278,640 150,000 c. & d. The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending inventory equal to 10 percent of the next month's cost of goods sold. However, ending inventory of December is expected to be $12,000. The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the following month. Assume that all purchases are made on account. Prepare an inventory purchases budget and a cash payments budget for inventory purchases. (Round your answers to the nearest whole dollar amount.) October November December Inventory Purchases Budget Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory Required purchases (on account) Schedule of Cash Payments Budget for Inventory Purchases Payment of current month's accounts payable $ 116.340| $ Payment for prior month's accounts payable Total budgeted payments for inventory $ 150,000$ 162,000$174,960 12,000 186,960 17,496 $ 166,200 $ 163,296 $ 169,464 17.496 179,496 16,200 16,200 166,200 118525 48,989 $ 116,340$ 164,167 $ 167,614 114.307| $ 49,860Explanation / Answer
Cash Budget Oct Nov Dec Beginnning Cash Balance 0 $12,660 $12,000 Add Cash Collections 100,000 258,000 278,640 Total Cash Avail 100,000 270,660 290,640 Less Cash Disbursements For Inventory $116,340 $164,167 $167,614 For Selling & adm Expenses 29000 43300 44732 Purcahse of store fixtures 164000 Interest expenses 4440 1752 Total Cash Disbursements $309,340 $211,907 $214,098 Payment minus receipts ($209,340) $58,753 $76,542 Financing: Borrowings/Repayments 222000 ($46,753) ($64,542) Repayments: Total Financing 222000 -46753 -64542 Ending Cash Balance $12,660 $12,000 $12,000 Interet FOR Dec (222000-46753)*1% ans h Income statement calculation sales 811600 (250000+270000+291600) Less;: Cost of Good sold $486,960 (150000+162000+174960) Gross profit $324,640 Less: Selling & Administrative exp 145012 46900+48300+49812 operating income $179,628 Interest exp 6192 Net Income $173,436 ans g Balance sheet Current assets Cash 12,000 Accounts receivable 174,960 Inventory 12,000 Total Current assets 198,960 Store Fixtures 164000 Less: accumuted Dep -12000 152000 Total assets 350,960 Liabilities & stockholder equity liabilities Sales commisison payable 14,580 Utilities payable 1,400 Line of credit 110,705 Accounts payable (169464*30%) 50,839 stockholder equity Retained earnings $173,436 Total Liabilities & stockholder equity $350,960 ans h Statement of cash flows Cash flow from operating activities Cash receipts from customers 636,640 Cash payment of Inventory ($448,121) Cash payment of S & A exp -117032 Cash payment of interest -6192 Net cash flow from operating activities 65,295 Cash flow from investing Cash cash from financing activities -164000 Net inflow of line of credit 110,705 Net Increase in cash 12,000 Add: beg bal 0 Ending cash bal 12000