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ACC -Create an excel with a budgeted income statement for each of the first two months




Question;1.Create an excel with a budgeted income statement for each of the first two months2.prepare a cash flow analysis for the two month period3. Compute what the accounts receivable and accounts payable balances will be at the end of the two month period.;At the start if business operation is $10,000On the first day of the first month of business, an insurance premium of $6,000 is due. The term of this policy is for one year.;The owner provides the following estimates for the first two months of business;Sales:$40,000 in first month, and $60,000in second month.Cost of sales: 35%Cost of labor: 30%Cost of related payroll(payroll taxes, benefits):25% of payrollSupplies:5% of salesAdvertising: $600 monthly Depreciation: $1,000 monthly Rent: $3,000 monthly All other expenses: 12% of sales;The owner provides the following statistical information bases on industry studies and personal estimates;Sales are estimated to be 80% cash and 20% accounts receivable. The accounts receivable are collected in the month following the sales;Cost of sales represent purchases. The purchase are estimated to be 90% on accounts payable and 10 percent cash. The accounts payable are paid In the month following the sale;All other expenses are paid in the current month;A delivery truck is required for the second month of business. This vehicle will cost $25,000 and requires a $4,000 down payment. Payments on the note start the third month of business.


Paper#43014 | Written in 18-Jul-2015

Price : $21