I need to create a forecasted income statement and forecasted balance sheet with the following information. Data Section: Actual and Budgeted Unit Sales: April 1,500 May 1,000 June 1,600 July 1,400 August 1,500 September 1,200 Balance Sheet, May 31, 19X5 Cash $8,000 Accounts receivable 107,800 Merchandise inventory 52,800 Fixed assets (net) 130,000 -------- Total assets $298,600 ======== Accounts payable (merchandise) $74,800 Owner's equity 223,800 -------- Total liabilities & equity $298,600 ======== Average selling price $98 Average purchase cost per unit $55 Desired ending inventory (% of next month's unit sales) 60% Collections from customers: Collected in month of sale 20% Collected in month after sale 60% Collected two months after sale 20% Projected cash payments: Variable expenses 30% of sales Fixed expenses (per month) $10,000 Depreciation per month $1,000 - - - - Answer Section: Sales Budget ------------ June July August ------ ------ ------ Units 1,600 1,400 1,500 Dollars $156,800 137,200 147,000 Unit Purchases Budget ------------------ June July August ------ ------ ------ Desired ending inventory 840 900 720 Current month's unit sales 1,600 1,400 1,500 -------- -------- -------- Total units needed 2,440 2,300 2,220 Beginning inventory 960 840 900 -------- -------- -------- Purchases (units) 1,480 1,460 1,320 ======== ======== ======== Purchases (dollars) $81,400 $80,300 $72,600 ======== ======== ======== Cash Budget ----------- June July August ------ ------ ------ Cash balance, beginning $8,000 $8,000 $8,000 Cash receipts: Collections from customers: From April sales 29,400 From May sales 58,800 19,600 From June sales 31,360 94,080 31,360 From July sales 27,440 82,320 From August sales 29,400 -------- -------- -------- Total cash available $127,560 $149,120 $151,080 Cash disbursements: Merchandise $74,800 $81,400 $80,300 Variable expenses 47,040 41,160 44,100 Fixed expenses 10,000 10,000 10,000 Interest paid 0 184 59 -------- -------- -------- Total disbursements $131,840 $132,744 $134,459 -------- -------- -------- Cash balance before financing ($4,280) $16,376 $16,621 Less: Desired ending balance 8,000 8,000 8,000 -------- -------- -------- Excess (deficit) of cash over needs ($12,280) $8,376 $8,621 -------- -------- -------- Financing Borrowing $12,280 $0 $0 Repayment 0 (8,376) (3,904) -------- -------- -------- Total effects of financing $12,280 ($8,376) ($3,904) -------- -------- -------- Cash balance, ending $8,000 $8,000 $12,717 ======== ======== ======== Forecasted Income Statement For Quarter Ended August 31, 19X5 --------------------------------- Sales Cost of goods sold -------- Gross profit -------- Expenses: Variable expenses Fixed expenses Depreciation expense Interest expense -------- Total expenses $0 -------- Net income $0 ======== Forecasted Balance Sheet August 31, 19X5 ------------------------ Assets: Cash Accounts receivable Merchandise inventory Fixed assets (net) -------- Total assets $0 ======== Liabilities & equity: Accounts payable Loans payable 0 Owner's equity -------- Total liabilities & equity $0 ========

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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I need to create a forecasted income statement and forecasted balance sheet with the following information.

Data Section:        
         
Actual and Budgeted Unit Sales:        
    April 1,500      
    May 1,000      
    June 1,600      
    July 1,400      
    August 1,500      
    September 1,200      
         
Balance Sheet, May 31, 19X5        
    Cash $8,000      
    Accounts receivable 107,800      
    Merchandise inventory 52,800      
    Fixed assets (net) 130,000      
  --------      
        Total assets $298,600      
  ========      
    Accounts payable (merchandise) $74,800      
    Owner's equity 223,800      
  --------      
        Total liabilities & equity $298,600      
  ========      
         
Average selling price $98      
Average purchase cost per unit $55      
Desired ending inventory        
  (% of next month's unit sales) 60%      
Collections from customers:        
  Collected in month of sale 20%      
  Collected in month after sale 60%      
  Collected two months after sale 20%      
Projected cash payments:        
  Variable expenses 30%  of sales    
  Fixed expenses (per month) $10,000      
Depreciation per month $1,000      
         
- - - -  
Answer Section:        
                               Sales Budget        
                               ------------        
  June July August  
  ------ ------ ------  
              Units 1,600 1,400 1,500  
              Dollars $156,800 137,200 147,000  
         
                          Unit Purchases Budget        
  ------------------        
  June July August  
  ------ ------ ------  
Desired ending inventory 840 900 720  
Current month's unit sales 1,600 1,400 1,500  
  -------- -------- --------  
Total units needed 2,440 2,300 2,220  
Beginning inventory 960 840 900  
  -------- -------- --------  
Purchases (units) 1,480 1,460 1,320  
  ======== ======== ========  
Purchases (dollars) $81,400 $80,300 $72,600  
  ======== ======== ========  
         
                               Cash Budget        
                               -----------        
  June July August  
  ------ ------ ------  
Cash balance, beginning $8,000 $8,000 $8,000  
Cash receipts:        
  Collections from customers:        
    From April sales 29,400      
    From May sales 58,800 19,600    
    From June sales 31,360 94,080 31,360  
    From July sales   27,440 82,320  
    From August sales     29,400  
  -------- -------- --------  
  Total cash available $127,560 $149,120 $151,080  
Cash disbursements:        
  Merchandise $74,800 $81,400 $80,300  
  Variable expenses 47,040 41,160 44,100  
  Fixed expenses 10,000 10,000 10,000  
  Interest paid 0 184 59  
  -------- -------- --------  
  Total disbursements $131,840 $132,744 $134,459  
  -------- -------- --------  
Cash balance before financing ($4,280) $16,376 $16,621  
Less:  Desired ending balance 8,000 8,000 8,000  
  -------- -------- --------  
Excess (deficit) of cash over needs ($12,280) $8,376 $8,621  
  -------- -------- --------  
Financing        
  Borrowing $12,280 $0 $0  
  Repayment 0 (8,376) (3,904)  
  -------- -------- --------  
Total effects of financing $12,280 ($8,376) ($3,904)  
  -------- -------- --------  
Cash balance, ending $8,000 $8,000 $12,717  
  ======== ======== ========  
         
                       Forecasted Income Statement        
                    For Quarter Ended August 31, 19X5        
                    ---------------------------------        
Sales        
Cost of goods sold        
      --------  
Gross profit        
      --------  
Expenses:        
  Variable expenses        
  Fixed expenses        
  Depreciation expense        
  Interest expense        
      --------  
  Total expenses     $0  
      --------  
Net income     $0  
      ========  
         
                         Forecasted Balance Sheet        
                             August 31, 19X5        
                         ------------------------        
Assets:        
  Cash        
  Accounts receivable        
  Merchandise inventory        
  Fixed assets (net)        
      --------  
Total assets     $0  
      ========  
Liabilities & equity:        
  Accounts payable        
  Loans payable     0  
  Owner's equity        
      --------  
Total liabilities & equity     $0  
      ========  
- - - -  
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