The economy is slowly opening as the government lower down the alert level to 1. Companies begin to operate at 100%. One of them is Company JKL, a restaurant offering Pinoy delicacies. Help the company prepare the different financial/budget sheets. a. Sales Company JKL forecasted 5-month sales divided per month. The months covered are May, June, July, August, and September. The company forecasted 250 units being sold in the first month while the succeeding months will be 100 units more than the preceding month. Each unit is sold at P300. Prepare the sales budget. The company only allows two payment methods: Cash and Straight Credit Card (full payment next month). Averagely, 40% of sales are paid in cash while the rest is through credit card. b. Production Given the sales, the company wishes to make sure 150 units of ending inventory every month. April has an ending inventory of 100 units. i. How many units should Company JKL produce in order to fulfill the expected sales of the company? ii. If each unit cost P75 each and the payment is done the next month. Prepare the Production budget. c. Operation Since they are reporting to work, they need to rent an office which will cost them P10,000 a month. Other expenses such utilities cost them around P5000 a month. The company pays their 4 employees P10,000 a month. In April the company pays P50,000 for their corporate tax. In June, the company bought 3 mixers worth P7,000 each. While in May, they pay an interest amounting to P5,000 and paid the principal a month after worth P15,000.00. Prepare the Cash disbursement sheet. d. Cash Balance If the company has an ending cash balance of P67,000.00 in April and aim of P150,000 ending cash balance per month. Prepare Cash Budget indicating the excess cash balance/required financing.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
The economy is slowly opening as the government lower down the alert level to 1. Companies begin to
operate at 100%. One of them is Company JKL, a restaurant offering Pinoy delicacies. Help the company
prepare the different financial/budget sheets.
a. Sales
Company JKL
July, August, and September.
The company forecasted 250 units being sold in the first month while the succeeding months will
be 100 units more than the preceding month. Each unit is sold at P300. Prepare the sales budget.
The company only allows two payment methods: Cash and Straight Credit Card (full payment
next month). Averagely, 40% of sales are paid in cash while the rest is through credit card.
b. Production
Given the sales, the company wishes to make sure 150 units of ending inventory every month.
April has an ending inventory of 100 units.
i. How many units should Company JKL produce in order to fulfill the expected sales of the company?
ii. If each unit cost P75 each and the payment is done the next month. Prepare the Production budget.
c. Operation
Since they are reporting to work, they need to rent an office which will cost them P10,000 a
month. Other expenses such utilities cost them around P5000 a month.
The company pays their 4 employees P10,000 a month. In April the company pays P50,000 for
their corporate tax.
In June, the company bought 3 mixers worth P7,000 each. While in May, they pay an interest
amounting to P5,000 and paid the principal a month after worth P15,000.00.
Prepare the Cash disbursement sheet.
d. Cash Balance
If the company has an ending cash balance of P67,000.00 in April and aim of P150,000 ending
cash balance per month. Prepare
financing.
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