Hello! I need help answering i and j only on this question. I have a-h figured o
ID: 2463417 • Letter: H
Question
Hello! I need help answering i and j only on this question. I have a-h figured out.
Question Problem 7-23A Preparing a master budget for retail company with no beginning account balances LO 7-2, 7-3, 7-4, 7-5, 7-6 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:
DONT NEED ANSWER 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.
DONT NEED ANSWERc.&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. 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.)
DONT NEED ANSWER e.&f. Budgeted selling and administrative expenses per month follow. Salary expense (fixed) $ 18,000 Sales commissions 5 percent of Sales Supplies expense 2 percent of Sales Utilities (fixed) $ 1,400 Depreciation on store fixtures (fixed)* $ 4,000 Rent (fixed) $ 4,800 Miscellaneous (fixed) $ 1,200 * The capital expenditures budget indicates that Haas will spend $164,000 on October 1 for store fixtures, which are expected to have a $20,000 salvage value and a three-year (36-month) useful life. Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in the month in which they are incurred. Prepare a selling and administrative expenses budget and a cash payments budget for selling and administrative expenses. (Round your answers to nearest whole dollar amount.)
DONT NEED ANSWER g. Haas borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be made in any amount available. The company also pays its vendors on the last day of the month. It pays interest of 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $12,000 cash cushion. Prepare a cash budget. (Any repayments/shortage which should be indicated with a minus sign. Round your answers to nearest whole dollar amount.)
DONT NEED ANSWERh. Prepare a pro forma income statement for the quarter. (Round your answers to nearest whole dollar amount.)
NEED ANSWER i. Prepare a pro forma balance sheet at the end of the quarter. (Amounts to be deducted should be indicated by a minus sign.)
NEED ANSWER j. Prepare a pro forma statement of cash flows for the quarter. (Amounts to be deducted should be indicated by a minus sign. Round your answers to nearest whole dollar amount.)
i. Prepare a pro forma balance sheet at the end of the quarter (Amounts to be deducted should be indicated by a minus sign) AS COMPANY er Assets Store fixtures Inventory Accounts receivable Cas Cash Total assets Liabilities Stockholders Equity Total liabilities and stockhofders eExplanation / Answer
HASS COMPANY
Pro Forma Balance sheet
As of December 31, 2015
Assets:
Store fixtures
132,000
(164000-20000-4000-4000-4000)
Inventory
12,000
Accounts receivables
174,960
(December sale of 291600*0.6)
cash
12,000
Total Assets
330,960
Liabilities & Equity:
Liabilities
Accounts Payables
52,488
(0.3*0.6*December sales of 291600)
Utilities payables
1,400
Sales Commission
14,580
(0.05*291600)
Borrowings
262,492
From cash budget schedule
Stock holders’ EQUITY
Nil
Total Liabilities and stock holders’ equity
330,960
HASS COMPANY
Pro Forma Statement of Cash Flows
For the Quarter Ending December 31, 2015
Cash Flows from Operating activities:
sale revenue
811,600
(250000+270000+291600)
Less: Cost of goods sold
486,960
(60% of sales)
Salary expenses
54,000
Sales commissions
81,160
Supplies expenses
48,696
Utilities
2,800
Rent
14,400
Miscellaneous
3,600
Net cash flows from Operating Activities
119,984
Cash flow from Financial Activities:
Net borrowings
262,492
Cash flow from Investment Activities:
Capital expenditures
164,000
Accumulated Depreciation
(12,000)
HASS COMPANY
Pro Forma Balance sheet
As of December 31, 2015
Assets:
Store fixtures
132,000
(164000-20000-4000-4000-4000)
Inventory
12,000
Accounts receivables
174,960
(December sale of 291600*0.6)
cash
12,000
Total Assets
330,960
Liabilities & Equity:
Liabilities
Accounts Payables
52,488
(0.3*0.6*December sales of 291600)
Utilities payables
1,400
Sales Commission
14,580
(0.05*291600)
Borrowings
262,492
From cash budget schedule
Stock holders’ EQUITY
Nil
Total Liabilities and stock holders’ equity
330,960
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.