Professor Jozsi ACC 3211 Master Budget Take-Home Fall, 2022 <\/p>\n
Per Florida Southern College Honor Code, I attest that the work is my own – not in collaboration or assistance from others. <\/p>\n
Signature: ____________________________________________<\/p>\n
The following is known for Unforgettable Trinkets (UT), Inc:<\/p>\n
The total sales for June were $124,000. Expected sales are $150,000 in July and $136,000 in August.<\/p>\n
Budgeted credit sales are 80%. The remainder are cash sales.<\/p>\n
Of the credit sales, 74% are collected in the same month and 22% in the next month. The rest are uncollectible.<\/p>\n
UT anticipates that 40% of the customers who pay for credit sales in the same month will take advantage of the 1% discount offered for payment of credit sales in the same month. <\/p>\n
The desired ending inventory is 15% of next month’s sales in units at the end of each month.<\/p>\n
The gross margin percentage is 38%.<\/p>\n
All inventory purchases are on credit. Payments to suppliers are: 66% in same month and the remaining 34% in the following month. UT takes advantage of the 2% discount offered by suppliers on same month payments.<\/p>\n
Total monthly fixed selling and administrative costs are $25,000; of this amount, depreciation expense is $9,000<\/p>\n
UT pays all cash expenses in the month incurred. <\/p>\n
UT expects variable selling\/shipping costs of $1.85 per unit and pays them in the month incurred.<\/p>\n
UT anticipates the unit sales price to be $16 per unit from June through August. <\/p>\n
UT plans to buy a small parcel of land in July for $19,000.<\/p>\n
The cash balance of July 1 was $37,000.<\/p>\n
UT is expected to earn the balance of June 30th Unearned Revenue collected in June for $14,000.<\/p>\n
In July, UT is expected to declare $4,000 of cash dividends and pay for the $6,000 declared in June.<\/p>\n
Required: Please use Excel to support your work. Label answers clearly. <\/p>\n
a. What were June purchases and what are expected July purchases? <\/p>\n
b. What is the budgeted July income before taxes?<\/p>\n
c. What are budgeted July total cash collections?<\/p>\n
d. What are budgeted July payments to suppliers?<\/p>\n
e. What is the budgeted cash balance on July 31?<\/p>\n
f. What is the budgeted balance of Accounts Receivable on July 31? <\/p>\n
g. What is the budgeted balance of Accounts Payable on July 31? <\/p>\n
Assume the following changes to the original data: June sales were instead $118,000, expected sales are $155,000 for July and $140,000 for August, and expected gross margin is 35%. Expected collections of credit sales are 65% for the same month and 30% from previous month; 5% are expected to be uncollectible. Repeat \u201ca through e\u201d requirements. <\/p>\n
Discuss five other information\/questions that you would consider relevant for the July budget.<\/p>\n","protected":false},"excerpt":{"rendered":"
Professor Jozsi ACC 3211 Master Budget Take-Home Fall, 2022 Per Florida Southern College Honor Code, I attest that the work<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-42319","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"\n