Question;ACCT 116 Budget Assignment 50 Points Due November 20th -- AT THE;BEGINNING OF CLASS;Right Price Plant Company operates a garden center where peak sales;occur in the month of May. Data regarding the store's operations follow;? Sales are budgeted at $300,000 for April, 350,000 for May, and;$280,000 for June and $240,000 in July;? Collections are expected to be 20% in the month of sale, 75% in;the month following the sale, 4% in the second month following sale and 1%;uncollectible.;? The cost of goods sold is 72% of sales.? The company desires ending merchandise inventory to equal 20% of the;following month's cost of goods sold. Payment for merchandise is made 50% in;the month of purchase and 50% in the month following the purchase.;? Miscellaneous monthly expenses to be paid in cash are $12,000.;? Monthly depreciation is $11,500.;? Equipment purchases of $22,000 in April and $135,000 in May were;paid in cash.;? Dividends of $50,000 were declared and paid in June.;? Any borrowings must be in $1,000 increments at 12% annual interest.;Assume interest accrues at the beginning of the month and is paid at the end of;the month. The company must maintain a minimum cash balance of $20,000.;? Ignore income taxes.? All accounts receivable from March will be collected in April and;all accounts payable in March will be paid in April.;? The balance sheet as of March 31st.;Right Price Plant Company Balance Sheet 3/31/14;Assets: Cash Net Accounts Receivable Merchandise Inventory;Property Plant and Equipment Less: accumulated depreciation Total Assets;Liabilities & Stockholder's Equity: Accounts Payable Common;Stock Retained Earnings Total Liabilities and Stockholder's Equity;$1,500,000 $688,000;$27,000 $90,000 $156,000;$812,000 $1,085,000;$205,000 $300,000 $580,000 $1,085,000;Prepare the following budgets for each month April, May, June and Total;for the quarter in good form in excel with proper use of formulas and;formatting;a. Prepare a Schedule of Expected Cash Collections? What is the budgeted;accounts receivable at June 30th?;b. Prepare a Merchandise Purchases Budget and a Schedule of Expected;Cash Disbursements? What is the budgeted accounts payable at June 30th?;c. Prepare a Cash Budget? How much does the company need to borrow for;the quarter?? How much can the company repay for the quarter?;d. Prepare a Budgeted Income Statement;Extra credit 5 points Prepare a Budgeted Balance Sheet;Please highlight your answers.;Formatting is as important as the correct answer for this project. Your;spreadsheet should be in good form, presented and printed clearly, and labeled;appropriately. Your print out should be in report format and clearly presented.;Each budget should not span more than one page, i.e. pay attention to what;prints out on each page.;In addition to your spreadsheet, you MUST print out your spreadsheet;formulas. Use "control r-d" to toggle over to view the formulas and;then print again. Projects submitted without formulas will only receive half;credit.;Check figures: cash collections at end of quarter = $775,500;Deficiency in cash at the end of the quarter = ($95,740);You will need to borrow and repay during the quarter.;(Note that due to varying assumptions made in the budgeting process;your numbers may be slightly different than mine. If your balance sheet;balances, then your budget works.);DO NOT PLUG ANYTHING!
Paper#39012 | Written in 18-Jul-2015Price : $24