Master Budget

Schedule A: Sales Budget

JAN FEB MAR TOTAL

Recent and Forecasted Sales 62,000 75,000 38,000 175,000

Schedule B: Cash Collections

JAN FEB MAR

60% of current month sales 37,200 45,000 22,800

30% of previous month sales 7,500 18,600 22,500

10% of 2 months earlier 2,500 2,500 6,200

Total collections 47,200 66,100 51,500

Schedule C: Purchases

JAN FEB MAR

Desired ending inventory 6,000 6,000 6,000

Cost of goods sold 31,000 37,500 19,000

Total needed 37,000 43,500 25,000

less beginning inventory -39,050 -8,050 -6,000

Total Purchases (2050) or 0 35,450 19,000

Schedule D: Cash Disbursements

JAN FEB MAR

35,550 0 35,453

Cash receipts and disbursements:

Collections from customers 47,200 66,100 51,500

Cash disbursements for purchases 35,550 0 35,540

Rent 8,050 250 250

Wages and slaries 15,000 15,000 15,000

Miscellaneous 2,500 2,500 2,500

Fixtures 0 0 3,000

Dividends 1,500 0 0

Net cash receipts and disbursements -15,400 48,350 -4,700

Excess of cash before financing -15,400 48,450 27,890

Financing:

Borrowing 15,500 0 0

Repayments 0 -15,500 0

Interest 0 -258 0

Total cash from financing 15,500 -15,758 0

Ending cash balance 5,100 37,692 32,992

Budgeted Income Statement

January-March 20X5

JAN FEB MAR January-March Total

Sales 62,000 75,000 38,000 175,000

Cost of goods sold 31,000 37,500 19,000 87,500

Gross margin 31,000 37,500 19,000 87,500

Operating expenses:

Salaries and wages 15,000 15,000 15,000 45,000

Rent 250 250 16,750 17,250

Other (miscellaneous) 2,500 2,500 2,500 7,500

Insurance 125 125 125 375

Depreciation 250 250 250 750

Total operating expenses 18,125 18,125 34,625 70,875