FINAN204-21A Tutorial 10 Week 13
FINAN204-21A Tutorial 10 Week 13
Prepare a cash budget for August 2020 for the PDC Company and des
B. Prepare the PDC Company’s projected income statement for August.
C. Prepare the PDC Company’s projected balance sheet for August.
D. Prepare the PDC Company’s projected statement of cash flow for Aug
DC Company and describe how the forecast affects the end-of-month cash balance.
Schedule 3: Purchases
Ending inventory 110,400 149,040
Cost of goods sold 64,400 80,500
Total needed 174,800 229,540
Beginning Inventory 97,520 110,400
Purchases 77,280 119,140
Schedule 6: Disbursements-Wages/Comm
50% of last month's expenses 9,775
50% of this month's expenses 11,500
Total 21,275
Current Assets:
Cash 23,000 23,000
Accounts receivable 36,800 46,000
Merchandise inventory 110,400 149,040
Unexpired insurance 4,140 3,680
Total Current Assets 174,340 221,720
Plant
Equipment, fixtures and other 85,100 92,000
Accumulated depreciation -29,440 -30,590
Net PPE 55,660 61,410
Total Assets 230,000 283,130
Current Liabilities
Accounts payable 38,640 59,570
Accrued wages and commissions payable 9,775 11,500
Loan 0 30,935
Total Current Liabilities 48,415 102,005
Owner's equity 181,585 181,125
Total equities 230,000 283,130
Accounting Statement of Cash Flows
0 0 0
2,871 21,199 13,352
0 0 0
0 0 0
-2,871 -21,199 -6,865
-2,871 -21,199 -6,865
0 0 6,487
23,000 23,000 23,000
23,000 23,000 29,487
S
Cash Budgeting Exercise
PDC Company
[Spreadsheet Projections for Instructors]
Schedule 1: Sales Forecast
Credit sales, 40%
Cash sales, 60%
Schedule 3: Purchases
Ending inventory
Cost of goods sold
Total needed
Beginning Inventory
Purchases
Cash Budgeting Exercise
Schedule 6: Disbursements-Wages/Comm
50% of last month's expenses
50% of this month's expenses
Total
Cash Budgeting Exercise
Cash Budget
Beginning cash balance
Cash receipts
Collections from customers
Total cash available for needs, before fin.
Cash disbursements:
Merchandise
Wages and commissions
Miscellaneous expenses
Rent
Truck purchase
Total disbursements
Minimum cash balance desired
Total cash needed
Excess of total cash
Financing
New Borrowing
Repayments
Loan balance
Cash Budgeting Exercise
Interest
Total effects of financing
Cash balance
Sales
COGS
Gross Margin
Operating Expenses
Wages and commissions
Rent
Miscellaneous expenses
Insurance
Depreciation
Total operating expenses
Income from operations
Interest expense
Net income
Cash Budgeting Exercise
Balance Sheets
Current Assets:
Cash
Accounts receivable
Merchandise inventory
Unexpired insurance
Total Current Assets
Plant
Equipment, fixtures and other
Accumulated depreciation
Net PPE
Total Assets
Cash Budgeting Exercise
Current Liabilities
Accounts payable
Accrued wages and commissions payable
Loan
Total Current Liabilities
Cash Budgeting Exercise
Owner's equity
Total equities
Equity Issues
Dividends
Debt Issues
Net Cash Flows from Financing