COURSE\u00a0PROJECT\u00a01\u00a0INSTRUCTIONS\tYou\u00a0have\u00a0just\u00a0been\u00a0contracted\u00a0as\u00a0a\u00a0budget\u00a0consultant\u00a0by\u00a0LBJ\u00a0Company,\u00a0a\u00a0distributor\u00a0of\u00a0bracelets\u00a0to\u00a0various\u00a0retail\u00a0outlets\u00a0across\u00a0the\u00a0country.\u00a0The\u00a0company\u00a0has\u00a0done\u00a0very\u00a0little\u00a0in\u00a0the\u00a0way\u00a0of\u00a0budgeting\u00a0and\u00a0at\u00a0certain\u00a0times\u00a0of\u00a0the\u00a0year\u00a0has\u00a0experienced\u00a0a\u00a0shortage\u00a0of\u00a0cash.\tYou\u00a0have\u00a0decided\u00a0to\u00a0prepare\u00a0a\u00a0cash\u00a0budget\u00a0for\u00a0the\u00a0upcoming\u00a0fourth\u00a0quarter\u00a0in\u00a0order\u00a0to\u00a0show\u00a0management\u00a0the\u00a0benefits\u00a0that\u00a0can\u00a0be\u00a0gained\u00a0from\u00a0proper\u00a0cash\u00a0planning.\u00a0\u00a0You\u00a0have\u00a0worked\u00a0with\u00a0accounting\u00a0and\u00a0other\u00a0areas\u00a0to\u00a0gather\u00a0the\u00a0information\u00a0assembled\u00a0below.\tThe\u00a0company\u00a0sells\u00a0many\u00a0styles\u00a0of\u00a0bracelets,\u00a0but\u00a0all\u00a0are\u00a0sold\u00a0for\u00a0the\u00a0same\u00a0$10\u00a0price.\u00a0\u00a0Actual\u00a0sales\u00a0of\u00a0bracelets\u00a0for\u00a0the\u00a0last\u00a0three\u00a0months\u00a0and\u00a0budgeted\u00a0sales\u00a0for\u00a0the\u00a0next\u00a0six\u00a0months\u00a0follow:\t\u00a0\tThe\u00a0concentration\u00a0of\u00a0sales\u00a0in\u00a0the\u00a0fourth\u00a0quarter\u00a0is\u00a0due\u00a0to\u00a0the\u00a0Christmas\u00a0holiday.\u00a0Sufficient\u00a0inventory\u00a0should\u00a0be\u00a0on\u00a0hand\u00a0at\u00a0the\u00a0end\u00a0of\u00a0each\u00a0month\u00a0to\u00a0supply\u00a040%\u00a0of\u00a0the\u00a0bracelets\u00a0sold\u00a0in\u00a0the\u00a0following\u00a0month.\t\u00a0\t\u00a0\tSuppliers\u00a0are\u00a0paid\u00a0$4\u00a0for\u00a0each\u00a0bracelet.\u00a0\u00a0Fifty-percent\u00a0of\u00a0a\u00a0month’s\u00a0purchases\u00a0is\u00a0paid\u00a0for\u00a0in\u00a0the\u00a0month\u00a0of\u00a0purchase;\u00a0the\u00a0other\u00a050%\u00a0is\u00a0paid\u00a0for\u00a0in\u00a0the\u00a0following\u00a0month.\u00a0\u00a0All\u00a0sales\u00a0are\u00a0on\u00a0credit\u00a0with\u00a0no\u00a0discounts.\u00a0\u00a0The\u00a0company\u00a0has\u00a0found,\u00a0however,\u00a0that\u00a0only\u00a020%\u00a0of\u00a0a\u00a0month’s\u00a0sales\u00a0are\u00a0collected\u00a0in\u00a0the\u00a0month\u00a0of\u00a0sale.\u00a0An\u00a0additional\u00a070%\u00a0is\u00a0collected\u00a0in\u00a0the\u00a0following\u00a0month,\u00a0and\u00a0the\u00a0remaining\u00a010%\u00a0is\u00a0collected\u00a0in\u00a0the\u00a0second\u00a0month\u00a0following\u00a0sale.\u00a0\u00a0Bad\u00a0debts\u00a0have\u00a0been\u00a0negligible.\tMonthly\u00a0operating\u00a0expenses\u00a0for\u00a0the\u00a0company\u00a0are\u00a0given\u00a0below:\tVariable\u00a0expenses:\tSales\u00a0commissions \u00a04%\u00a0of\u00a0sales\u00a0\tFixed\u00a0expenses:\tAdvertising \u00a0$220,000\tRent \u00a0\u00a0\u00a0$20,000\tSalaries \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0$110,000\tUtilities \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0$10,000\tInsurance \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0$5,000\tDepreciation \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0$18,000\tInsurance\u00a0is\u00a0paid\u00a0on\u00a0an\u00a0annual\u00a0basis,\u00a0in\u00a0January\u00a0of\u00a0each\u00a0year.\tThe\u00a0company\u00a0plans\u00a0to\u00a0purchase\u00a0$22,000\u00a0in\u00a0new\u00a0equipment\u00a0during\u00a0October\u00a0and\u00a0$50,000\u00a0in\u00a0new\u00a0equipment\u00a0during\u00a0November;\u00a0both\u00a0purchases\u00a0will\u00a0be\u00a0for\u00a0cash.\u00a0The\u00a0company\u00a0declares\u00a0dividends\u00a0of\u00a0$20,000\u00a0each\u00a0quarter,\u00a0payable\u00a0in\u00a0the\u00a0first\u00a0month\u00a0of\u00a0the\u00a0following\u00a0quarter.\t\u00a0\t\u00a0\t\u00a0\tOther\u00a0relevant\u00a0data\u00a0is\u00a0given\u00a0below:\u00a0\tCash\u00a0balance\u00a0as\u00a0of\u00a0September\u00a030\u00a0 $74,000\tInventory\u00a0balance\u00a0as\u00a0of\u00a0September\u00a030 \ufffd \ufffd\u00a0\u00a0\u00a0$112,000\tMerchandise\u00a0purchases\u00a0for\u00a0September \ufffd \ufffd\u00a0\u00a0$200,000\t\u00a0\tThe\u00a0company\u00a0maintains\u00a0a\u00a0minimum\u00a0cash\u00a0balance\u00a0of\u00a0at\u00a0least\u00a0$50,000\u00a0at\u00a0the\u00a0end\u00a0of\u00a0each\u00a0month.\u00a0\u00a0All\u00a0borrowing\u00a0is\u00a0done\u00a0at\u00a0the\u00a0beginning\u00a0of\u00a0a\u00a0month;\u00a0any\u00a0repayments\u00a0are\u00a0made\u00a0at\u00a0the\u00a0end\u00a0of\u00a0a\u00a0month.\tThe\u00a0company\u00a0has\u00a0an\u00a0agreement\u00a0with\u00a0a\u00a0bank\u00a0that\u00a0allows\u00a0the\u00a0company\u00a0to\u00a0borrow\u00a0the\u00a0exact\u00a0amount\u00a0needed\u00a0at\u00a0the\u00a0beginning\u00a0of\u00a0each\u00a0month.\u00a0The\u00a0interest\u00a0rate\u00a0on\u00a0these\u00a0loans\u00a0is\u00a01%\u00a0per\u00a0month\u00a0and\u00a0for\u00a0simplicity\u00a0we\u00a0will\u00a0assume\u00a0that\u00a0interest\u00a0is\u00a0not\u00a0compounded.\u00a0At\u00a0the\u00a0end\u00a0of\u00a0the\u00a0quarter,\u00a0the\u00a0company\u00a0will\u00a0pay\u00a0the\u00a0bank\u00a0all\u00a0of\u00a0the\u00a0accrued\u00a0interest\u00a0on\u00a0the\u00a0loan\u00a0and\u00a0as\u00a0much\u00a0of\u00a0the\u00a0loan\u00a0as\u00a0possible\u00a0while\u00a0still\u00a0retaining\u00a0at\u00a0least\u00a0$50,000\u00a0in\u00a0cash.\tRequired:\tPrepare\u00a0a\u00a0cash\u00a0budget\u00a0for\u00a0the\u00a0three-month\u00a0period\u00a0ending\u00a0December\u00a031.\u00a0Include\u00a0the\u00a0following\u00a0detailed\u00a0budgets:\t1.\u00a0\ta.\u00a0A\u00a0sales\u00a0budget,\u00a0by\u00a0month\u00a0and\u00a0in\u00a0total.\tb.\u00a0A\u00a0schedule\u00a0of\u00a0expected\u00a0cash\u00a0collections\u00a0from\u00a0sales,\u00a0by\u00a0month\u00a0and\u00a0in\u00a0total.\tc.\u00a0A\u00a0merchandise\u00a0purchases\u00a0budget\u00a0in\u00a0units\u00a0and\u00a0in\u00a0dollars.\u00a0Show\u00a0the\u00a0budget\u00a0by\u00a0month\u00a0and\u00a0in\u00a0total.\td.\u00a0A\u00a0schedule\u00a0of\u00a0expected\u00a0cash\u00a0disbursements\u00a0for\u00a0merchandise\u00a0purchases,\u00a0by\u00a0month\u00a0and\u00a0in\u00a0total.\t2.\u00a0A\u00a0cash\u00a0budget.\u00a0Show\u00a0the\u00a0budget\u00a0by\u00a0month\u00a0and\u00a0in\u00a0total.\u00a0Determine\u00a0any\u00a0borrowing\u00a0that\u00a0would\u00a0be\u00a0needed\u00a0to\u00a0maintain\u00a0the\u00a0minimum\u00a0cash\u00a0balance\u00a0of\u00a0$50,000.<\/p>\n","protected":false},"excerpt":{"rendered":"
COURSE\u00a0PROJECT\u00a01\u00a0INSTRUCTIONS You\u00a0have\u00a0just\u00a0been\u00a0contracted\u00a0as\u00a0a\u00a0budget\u00a0consultant\u00a0by\u00a0LBJ\u00a0Company,\u00a0a\u00a0distributor\u00a0of\u00a0bracelets\u00a0to\u00a0various\u00a0retail\u00a0outlets\u00a0across\u00a0the\u00a0country.\u00a0The\u00a0company\u00a0has\u00a0done\u00a0very\u00a0little\u00a0in\u00a0the\u00a0way\u00a0of\u00a0budgeting\u00a0and\u00a0at\u00a0certain\u00a0times\u00a0of\u00a0the\u00a0year\u00a0has\u00a0experienced\u00a0a\u00a0shortage\u00a0of\u00a0cash. You\u00a0have\u00a0decided\u00a0to\u00a0prepare\u00a0a\u00a0cash\u00a0budget\u00a0for\u00a0the\u00a0upcoming\u00a0fourth\u00a0quarter\u00a0in\u00a0order\u00a0to\u00a0show\u00a0management\u00a0the\u00a0benefits\u00a0that\u00a0can\u00a0be\u00a0gained\u00a0from\u00a0proper\u00a0cash\u00a0planning.\u00a0\u00a0You\u00a0have\u00a0worked\u00a0with\u00a0accounting\u00a0and\u00a0other\u00a0areas\u00a0to\u00a0gather\u00a0the\u00a0information\u00a0assembled\u00a0below. The\u00a0company\u00a0sells\u00a0many\u00a0styles\u00a0of\u00a0bracelets,\u00a0but\u00a0all\u00a0are\u00a0sold\u00a0for\u00a0the\u00a0same\u00a0$10\u00a0price.\u00a0\u00a0Actual\u00a0sales\u00a0of\u00a0bracelets\u00a0for\u00a0the\u00a0last\u00a0three\u00a0months\u00a0and\u00a0budgeted\u00a0sales\u00a0for\u00a0the\u00a0next\u00a0six\u00a0months\u00a0follow: \u00a0 The\u00a0concentration\u00a0of\u00a0sales\u00a0in\u00a0the\u00a0fourth\u00a0quarter\u00a0is\u00a0due\u00a0to\u00a0the\u00a0Christmas\u00a0holiday.\u00a0Sufficient\u00a0inventory\u00a0should\u00a0be\u00a0on\u00a0hand\u00a0at\u00a0the\u00a0end\u00a0of\u00a0each\u00a0month\u00a0to\u00a0supply\u00a040%\u00a0of\u00a0the\u00a0bracelets\u00a0sold\u00a0in\u00a0the\u00a0following\u00a0month. \u00a0 \u00a0 Suppliers\u00a0are\u00a0paid\u00a0$4\u00a0for\u00a0each\u00a0bracelet.\u00a0\u00a0Fifty-percent\u00a0of\u00a0a\u00a0month’s\u00a0purchases\u00a0is\u00a0paid\u00a0for\u00a0in\u00a0the\u00a0month\u00a0of\u00a0purchase;\u00a0the\u00a0other\u00a050%\u00a0is\u00a0paid\u00a0for\u00a0in\u00a0the\u00a0following\u00a0month.\u00a0\u00a0All\u00a0sales\u00a0are\u00a0on\u00a0credit\u00a0with\u00a0no\u00a0discounts.\u00a0\u00a0The\u00a0company\u00a0has\u00a0found,\u00a0however,\u00a0that\u00a0only\u00a020%\u00a0of\u00a0a\u00a0month’s\u00a0sales\u00a0are\u00a0collected\u00a0in\u00a0the\u00a0month\u00a0of\u00a0sale.\u00a0An\u00a0additional\u00a070%\u00a0is\u00a0collected\u00a0in\u00a0the\u00a0following\u00a0month,\u00a0and\u00a0the\u00a0remaining\u00a010%\u00a0is\u00a0collected\u00a0in\u00a0the\u00a0second\u00a0month\u00a0following\u00a0sale.\u00a0\u00a0Bad\u00a0debts\u00a0have\u00a0been\u00a0negligible. Monthly\u00a0operating\u00a0expenses\u00a0for\u00a0the\u00a0company\u00a0are\u00a0given\u00a0below: Variable\u00a0expenses: Sales\u00a0commissions \u00a04%\u00a0of\u00a0sales\u00a0 Fixed\u00a0expenses: Advertising \u00a0$220,000 Rent \u00a0\u00a0\u00a0$20,000 Salaries \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0$110,000 Utilities \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0$10,000 Insurance \ufffd \ufffd Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-201278","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/201278","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=201278"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/201278\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=201278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=201278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=201278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}