Fill in the missing slots Haas Company is a retail company that specializes in s

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Fill in the missing slots

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|$ 108.0001$ 116.640 162,000 $ 100,000 258,000 278,640 150,000

Explanation / 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 Surplus/(shortage) ($209,340) $58,753 $76,542 Financing: Borrowings/Repayments 222000 ($46,753) ($64,542) Repayments: (58753-12000) (76542-12000) Total Financing 222000 -46753 -64542 Ending Cash Balance $12,660 $12,000 $12,000 Interest for Nov 222000*2%=$4400 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 If any doubt please comment

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