PROJECT 1 - Excel Template

Student Name:

a. SALES BUDGET:
October November December Quarter
Budgeted unit sales 70000 110000 60000

Selling price per unit 10 10 10

Total sales 700000 1100000 600000

b. SCHEDULE OF EXPECTED CASH COLLECTIONS:

October November December Quarter
August sales 26000 0 0 26000

September sales 280000 40000 0 320000

October sales 140000 490000 70000 700000

November sales 0 220000 770000 990000

December sales 0 0 120000 120000

Total cash collections 446000 750000 960000 2156000

c. MERCHANDISE PURCHASES BUDGET:

October November December Quarter
Budgeted unit sales 26,000 26,000
Add desired ending inventory 280,000 40,000 320,000

Total needs 140,000 490,000 70,000 700,000

Less beginning inventory 28,000 44,000 24,000 28,000

Required purchases 86,000 90,000 48,000 224,000

Cost of purchases @ $4 per unit 344,000 360,000 192,000 896,000

d. BUDGETED CASH DISBURSEMENTS FOR MERCHANDISE PURCHAS

Oct Nov Dec Total

September purchases 100,000 - - 100,000

October purchases 172,000 172,000 - 344,000

November purchases - 180,000 180,000 360,000

December purchases - - 96,000 96,000

Total cash payments 272,000 352,000 276,000 900,000

LBJ COMPANY
CASH BUDGET
For The 3 Months Ending December 31
October November December Quarter
Cash balance 74000 50000 50000 74000
Add collections from customers 446000 736000 960000 2142000
Total cash available 520000 786000 1010000 2216000

Less disbursements
Merchandise purchases 272000 352000 276000 900000

Advertising 220000 220000 220000 660000

Rent 20000 20000 20000 60000

Salaries 110000 110000 110000 330000

Commissions 28000 44000 24000 96000

Utilities 10000 10000 10000 30000

Equipment purchases 22000 50000 0 72000

Dividends paid 20000 0 0 20000

Total disbursements 702000 806000 660000 2168000

Excess (deficiency) of receipts -182000 -20000 350000 48000
over disbursements
Financing:
Borrowings 182000 20000 350000 48000
Repayments 18320 20200 3500 48480
Interest @1% 1820 200 3500 480
Total financing 202140 40400 357000 96960

Cash balance, ending 50000 50000 50000 50000

OLLECTIONS:
S FOR MERCHANDISE PURCHASES: