Business, 30.11.2020 08:40 ankomamasonjr
Bobcat Printing makes custom t-‐shirts and other promotional products for student organizations and businesses. It is beginning its first year of operations and needs to plan for its first quarter of operations. They would like to maximize their profits, and understand that accurate budgeting can help achieve that goal. The budgets will be prepared based on the following information:
a. Sales are budgeted at $20,000 for Month 1, $23,000 for Month 2, and $24,000 for Month 3.
b. Sales are collected 50% in the month of the sale, and 50% in the month following the sale.
c. Cost of Goods Sold is budgeted at 45% of Sales.
d. Inventory purchases are paid in full in the month following the purchase.
e. No inventory is kept on hand at the end of the month.
f. Monthly selling, general, and administrative expenses are as follows: donations are 10% of sales; advertising is 3% of sales; miscellaneous is 1% of sales; and rent is $4,000 per month. All SG&A expenses are paid in the month they are incurred.
g. Bobcat Printing is planning to purchase an equipment in Month 3 for $4,000 in cash.
h. They would like to maintain a minimum cash balance of $2,500 at the end of each month. The company has an agreement with a local bank that allows them to borrow, with a total line of credit of $20,000. The interest rate on these loans is 12% per year (or 1% per month). They would as far as able, repay the loan on the last day of the month when it has enough cash to pay the full balance and maintain an adequate ending cash balance.
i. Beginning cash was “0”. The owner makes a draw of $2,500 every month. (Note: sole proprietors and partnerships take owner’s draws, while stockholders receive dividends). Based upon the information provided, complete the operating budgets provided in the excel template, and answer the questions in Connect. When making calculations always round up (for example: 33 × 7% = 2.31, round up to 3.00).
Check Figures (correct answers):
Gross Margin $ 36,850.00
Total assets $ 18,752.00
Ending Retained Earnings $ 7,952.00
Answers: 1
Other questions on the subject: Business
Business, 22.06.2019 20:20, dd123984
Levine inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. direct materials (9 pounds at $1.80 per pound) $16.20 direct labor (6 hours at $14.00 per hour) $84.00 during the month of april, the company manufactures 270 units and incurs the following actual costs. direct materials purchased and used (2,500 pounds) $5,000 direct labor (1,660 hours) $22,908 compute the total, price, and quantity variances for materials and labor.
Answers: 2
Business, 23.06.2019 02:40, gesic2003
Peter, the marketing manager of a company that manufactures church furniture, has been given the job of increasing corporate profits by five percent during the upcoming year. peter decided to give his assistant the full responsibility and authority for developing a mailing campaign to target churches in an entire state. in other words, peter has
Answers: 1
Business, 23.06.2019 11:30, kylierice1
2. how has taobao created economic opportunities for chinese entrepreneurs that were inaccessible to them before?
Answers: 1
Business, 23.06.2019 13:30, josmanu235
Everfi module 5 answers when planning for college, you should consider:
Answers: 3
You know the right answer?
Bobcat Printing makes custom t-‐shirts and other promotional products for student organizations and...
Questions in other subjects:
Mathematics, 18.07.2019 20:00
Social Studies, 18.07.2019 20:00
