BRAC UNIVERSITY BRAC BUSINESS SCHOOL Course Name: Managerial Accounting Course Co!

e: ACT "#$% Summer $#&& Assignment'(ro)ect in E*cel Set A Time Allo+e!: $ ,ours

Name o- Stu!ent: Control ............................... I/ 0

Mynor Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: As of December the end of the prior quarter!, the company"s balance sheet showed the following account balances: a.
Cash Accounts recceivables Inventory Buildings and equipment net! Accounts payables Capital stoc% &etained earnings $ 50,000 222,000 60,000 "#0,000 $ $",000 500,000 '0$,000 #02,000

#02,000

b.

Actual sales for December and budgeted sales for the ne#t four months are as follows:
(ecember actual! *anuary ,ebruary -arch April $ $ $ $ $ 2)0,000 +50,000 #+0,000 "00,000 "00,000

c. d. e.

f. g. h. i.

$ales are %&' for cash and (&' on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December )* are a result of December credit sales. The company"s gross margin is +&' of sales. ,n other words, cost of goods sold is -&' of sales!. Monthly e#penses are budgeted as follows: salaries and wages, .%/,&&& per month0 advertising, ./&,&&& per month0 shipping 1' of sales0 other e#penses, )' of sales. Depreciation including depreciation on new assets acquired during the quarter will be .+%,&&& for the quarter. 2ach months ending inventory should equal %1' of the following months cost of goods sold. 3ne4half of a month"s inventory purchases are paid for in the month of purchase0 the other half is paid in the following month. During 5ebruary, the company will purchase a new copy machine for .*,/&& cash. During March, other equipment will be purchased for cash at a cost of .(+,1&&. During 6anuary, the company will declare and pay .+1,&&& in cash dividends.

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The company must maintain a minimum cash balance of .)&,&&&. An open line of credit is available at a local ban: for any borrowing that may be needed during the quarter. All borrowing is done at the beginning of a month and all repayments are made at the end of a month. ;orrowings and repayments of principal must be in multiples of .*,&&&. ,nterest is paid only at the time of payment of principle. The annual interest rate is *%' 5igure interest on whole months, e.g. *<*%, %<*%, etc!.

Re1uire!: =sing the data above, prepare the following statements and schedules for the first quarter: *. $chedule of e#pected cash collections %. Merchandise purchases budget ). $chedule of e#pected cash disbursements for merchandise purchases +. $chedule of cash disbursement for operating e#penses 1. Cash budget -. ,ncome statement /. ;alance sheet as of March )*

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