Accounting Project

Accounting Project

Project description
Your required tasks are as follows:
1.Insert all the data given below. This is the only TAB which can have hard coded entries. The balance sheet from the last accounting period is given.

Prepare a master budget for the three-month period ending June 30, 2012. You MUST use formulas in all cells, not constant numbers. That means all cells in your budget

must be linked to the data from TAB 1 or completed data from TAB 2. A template has been provided. Include the following detailed budgets:
1.a.A sales budget by month and in total.
b.A schedule of expected cash collections from sales, by month and in total.
c.A merchandise purchases budget in units and in dollars. Show the budget by and in total.
d. A schedule of expected cash disbursements for merchandise purchases, by month and in total.
2.A cash budget. Show the budget by month and in total.

1.A budgeted income statement for the three month period ending June 30. Use the contribution approach. You MUST use formulas in all cells, not constant numbers. A

partial template has been provided.

1. A budgeted balance sheet as of June 30. You MUST use formulas in all cells, not constant numbers. A template has been provided.

The company desires a minimum ending cash balance each month of $10,000.
The ties are sold to retailers for $8.00 each. Recent and forecasted sales in units are as follows:

January (actual)20,000June60,000
February (actual)24,000July40,000
March (actual)28,000August36,000

The large buildup in sales before and during June is due to Fatheras Day. Ending inventories are supposed to equal 90% of the next monthas sales in units. The ties

cost the company $5 each.

Purchases are paid as follows: 50% in the month of purchase and the remaining 50% in the following month. All sales are on credit, with no discount, and payable within

15 days. The company has found, however, that only 25% of a monthas sales are collected by month-end. An additional 50% is collected in the following month, and the

remaining 25% is collected in the second month following sale. Bad debts have been negligible.

The companyas monthly selling and administrative expenses are as follows:
Sales commissions$1 per tie
Wages and salaries$22,000
Utilities 14,000
Insurance 1,200
Depreciation 1,500
Miscellaneous 3,000
All selling and administrative expenses are paid during the month, in cash, with the exception of depreciation and insurance expired. Land will be purchased during May

for $25,000 cash. The company declares dividends of $12,000 each quarter, payable in the first month of the following quarter.

The company has an agreement with a bank that allows it to borrow in increments if $1,000 at the beginning of each month, up to a total loan balance of$100,000. The

interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. At the end of the quarter, the company would pay the

bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $10,000 in cash.

The companyas balance sheet at March 31 is given on TAB 1.

excel file that you do the assignment on. If you have any questions before hand about this assignment please call me as soon as you need help. I called and they told

me to put one page even though this project has nothing to do with essays or words. Its mostly all numbers on excel file and they have to be done using formulas.

Newport Tie Company                                                Newport Tie Company

Balance Sheet                                                Balance Sheet

31-Mar-12                                                31-Mar-12

Assets                                                Assets

Cash            14,000                                         Cash            $14,000

Accounts Receivable (48,000 February Sales                                                      Accounts Receivable

and $168,000 March Sales)            216,000                                              February Sales        $48,000

Merchandise Inventory(31500 units)            157,500                                         Merchandise Inventory(31500 units)

Prepaid Insurance            14,400                                         Prepaid Insurance             14,400

Fixed Assets Net of Depreciation            172,700                                         Fixed Assets Net of Depreciation

Total Assets            574,600                                    Total Assets            $574,600

Liabilities and Stockholders’ Equity                                                Liabilities and Stockholders’ Equity

Liabilities                                                 Liabilities

Accounts Payable            85,750                                    Accounts Payable            $85,750

Dividends Payable            12,000                                    Dividends Payable             12,000

Total Liabilities            97,750                                    Total Liabilities             97,750

Stockholders’ Equity                                                Stockholders’ Equity

Common stock            300,000                                    Common stock             300,000

Retained Earnings            176,850                                    Retained Earnings             176,850

Total  Stockholders’ Equity            476,850                                    Total  Stockholders’ Equity

Total Liabilities and Stockholders’ Equity            574,600                                    Total Liabilities and

Stockholders’ Equity             $574,600


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