Sales Budget
July
August
September
Quarter
October
Bagwis Corporation
Budgeted Income Statement
For the Quarter Ended September 30
Budgeted sales (in units)
Sales price per unit
Total budgeted sales
210,000
230,000
220,000
660,000
240,000
Expected Cash Collections (from sales)
July
Accounts Receivable 6/30
August
September
Quarter
Sales (Sales price per unit x Sales units)
660,000
COGS (Prod cost per unit x Sales units)
396,000
Gross margin
264,000
S&A expenses
180,000
Operating income
84,000
Interest expense
0
84,000
Net income
136,000
July Sales
35% x 210,000
73,500
65% x 210,000
Bagwis Corporation
Budgeted Balance Sheet
For the Quarter Ended September 30
136,500
August Sales
Assets
35% x 230,000
80500
65% x 230,000
149500
September Sales
Cash
183,700
Accounts receivable
143,000
Inventory
35% x 220,000
77,000
Plant & Equipment
Less: accumulated depreciation
Total cash collections
209,500
217,000
226,500
653,000
Total assets
72,000
210,000
-15,000
593,700
**note: Slide in accounts receivable = 65% x 220,000 = 143,000 in the balance sheet ended September 30
Liabilities and Stockholders' Equity
Accounts payable
Material Purchases Budget
327,000
Retained earnings
183,900
593,700
Total liabilities and stockholders' equity
July
COGS
August
September
Quarter
126,000
138,000
132,000
396,000
69,000
66,000
72,000
72,000
Total needed
195,000
204,000
204,000
468,000
Less: Beginning inventory
62,000
133,000
69,000
135,000
66,000
138,000
62,000
406,000
Add: Desired ending inventory
Materials to be purchased
**recall that [COGS = beg + COGP - end]... so [COGP = COGS + end - beg]
Expected Cash Disbursement (for purchase costs)
October
144000
82,800
Common stock
July
Accounts payable 6/30
August
September
Quarter
71,100
71,100
July purchases
40% x 133,000
53,200
60% x 133,000
53,200
79,800
79800
August purchases
40% x 135,000
54,000
60% x 135,000
54000
81,000
81000
55,200
136,200
55200
394,300
September purchases
40% x 138,000
Cash disbursements
124,300
133,800
**note: Slide in accounts payable = 60% x 138,000 = 82,800 in the balance sheet ended September 30
Selling & Admin expense Budget
July
August
September
Quarter
Budgeted sales
Variable S&A rate
Variable expenses
Fixed S&A rate
Total S&A expenses
60,000
60,000
60,000
180,000
Less: noncash costs (e.g. depreciation
5,000
55,000
5,000
55,000
5,000
55,000
15,000
165,000
Cash disbursements for S&A
CASH BUDGET
July
Beginning cash balance
August
September
Quarter
90,000
120,200
148,400
90,000
Add: cash collections
209,500
217,000
226,500
653,000
Total cash available
299,500
337,200
374,900
743,000
124,300
133,800
136,200
394,300
55,000
55,000
55,000
165,000
Total cash disbursements
179,300
188,800
191,200
559,300
Excess (Deficiency)
120,200
148,400
183,700
183,700
0
120,200
0
148,400
0
183,700
0
183,700
Less: cash disbursements
Material purchases
S&A
Financing:
Total financing
Ending cash balance