A B C

1
2 MASTER
3 Master Budget
4
5 Data Section
6
7 Actual and Budgeted Unit Sales
8 April 1,500
9 May 1,000
10 June 1,600
11 July 1,400
12 August 1,500
13 September 1,200
14
15 Balance Sheet, May 31, 2001
16 Cash $8,000
17 Accounts receivable 107,800
18 Merchandise inventory 52,800
19 Fixed assets (net) 130,000
20 Total assets $298,600
21
22 Accounts payable (merchandise) $74,800
23 Owner's equity 223,800
24 Total liabilities & equity $298,600
25
26 Other Data
27 Average selling price $98
28 Average purchase cost per unit $55
29 Desired ending inventory
30 (% of next month's unit sales) 60%
31 Collections from customers:
32 Collected in month of sale 20%
33 Collected in month after sale 60%
34 Collected two months after sale 20%
35 Projected cash payments:
36 Variable expenses 30% of sales
37 Fixed expenses (per month) $10,000
38 Depreciation per month $1,000
39
 A B C
40 Answer Section
41
42 Sales Budget June July
43 Units FORMULA1 1,400
44
45 Dollars FORMULA2 137,200
46
47
48 Unit Purchases Budget June July
49 Desired ending inventory FORMULA3 900
50 Current month's unit sales FORMULA4 1,400
51 Total units needed FORMULA5 2,300
52 Beginning inventory FORMULA6 FORMULA3
53 Purchases (units) FORMULA7 #VALUE!
54
55 Purchases (dollars) FORMULA8 #VALUE!
56
57
58 Cash Budget June July
59 Cash balance, beginning $8,000 $8,000
60 Cash receipts:
61 Collections from customers:
62 From April sales FORMULA9
63 From May sales FORMULA10 FORMULA11
64 From June sales FORMULA12 94,080
65 From July sales 27,440
66 From August sales
67 Total cash available $8,000 $129,520
68 Cash disbursements:
69 Merchandise FORMULA13 FORMULA8
70 Variable expenses FORMULA14 41,160
71 Fixed expenses FORMULA15 10,000
72 Interest paid 0 0
73 Total disbursements $0 $51,160
74 Cash balance before financing $8,000 $78,360
75 Less: Desired ending balance 8,000 8,000
76 Excess (deficit) of cash over needs $0 $70,360
77 Financing
78 Borrowing $0 $0
79 Repayment 0 0
80 Total effects of financing $0 $0
 A B C
81 Cash balance, ending $8,000 $78,360
82
 A B C
83
84 Forecasted Income Statement
85 For Quarter Ended August 31, 2001
86 Sales
87 Cost of goods sold
88 Gross profit
89 Expenses:
90 Variable expenses
91 Fixed expenses
92 Depreciation expense
93 Interest expense
94 Total expenses
95 Net income
96
97
98 Forecasted Balance Sheet
99 August 31, 2001
100 Assets:
101 Cash
102 Accounts receivable
103 Merchandise inventory
104 Fixed assets (net)
105 Total assets
106
107 Liabilities & equity:
108 Accounts payable
109 Loans payable
110 Owner's equity
111 Total liabilities & equity
112
 D
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 D
40
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42 August
43 1,500
44
45 147,000
46
47
48 August
49 720
50 1,500
51 2,220
52 900
53 1,320
54
55 $72,600
56
57
58 August
59 $78,360
60
61
62
63
64 31,360
65 82,320
66 29,400
67 $221,440
68
69 #VALUE!
70 44,100
71 10,000
72 0
73 #VALUE!
74 #VALUE!
75 #VALUE!
76 #VALUE!
77
78 #VALUE!
79 #VALUE!
80 #VALUE!
 D
81 #VALUE!
82
 D
83
84
85
86 FORMULA16
87 FORMULA17
88 FORMULA18
89
90 FORMULA19
91 FORMULA20
92 FORMULA21
93 FORMULA22
94 $0
95 #VALUE!
96
97
98
99
100
101 FORMULA23
102 FORMULA24
103 FORMULA25
104 FORMULA26
105 $0
106
107
108 FORMULA27
109 #VALUE!
110 FORMULA28
111 #VALUE!
112
 Sales and Net Income Possibilities

800000

700000

600000

500000

400000 Sales
Net Income
300000

200000

100000

-100000
0% 50% 100% 150% 200%

Percent of Expected Volume

Chart
Data Table
Percent Sales NI
0% 156800 -11424
50% 298900 8296
100% 441000 27957
150% 583100 47228
200% 725200 66498
come